NETSOL TECHNOLOGIES ANNOUNCES 117 PERCENT REVENUE INCREASE FOR FIRST QUARTER OF FISCAL 2006

Calabasas, CA – November 10, 2005 – NetSol Technologies, Inc. (NASDAQ:NTWK), a developer of proprietary software applications and provider of information technology (IT) services, today reported financial results for its first quarter of fiscal 2006, ended September 30, 2005.

- Net revenue for the first quarter of fiscal 2006 was approximately $4.47 million, an increase of 117 percent when compared to revenue of $2.06 million for the first quarter of fiscal 2005.

- Net income for the quarter, before minority interest adjustments, was $570,958, or net income per weighted average diluted share of $0.04 compared to net income before minority interest adjustments for the comparable quarter of fiscal 2005 of $124,665, or net income per weighted average diluted share of $0.01.

- Net income after minority interest adjustments was $203,745, or net income per weighted average diluted share of $0.015, compared to net income after minority interest adjustments of $139,733, or net income per weighted average diluted share of $0.01 for first quarter of fiscal 2005. Gross profit margins for both the first quarter of fiscal 2006 and the comparable fiscal 2005 quarter were approximately 63 percent.

The minority interest adjustments reflect the minority-owned portion of net income of three of NetSol’s subsidiaries: NetSol Technologies, Ltd., NetSol Connect and NetSol TiG Joint Venture.

- NetSol's first quarter EBITDA (earnings before interest, tax, deprecation and amortization), a fundamental way to value a company's performance, was $897,407, a 95 percent increase when compared to EBITDA of $458,359 for the same period ended September 30, 2004

"We are pleased to announce our fifth consecutive quarter of revenue growth and profitability", said NetSol Chief Financial Officer Tina Gilger. "Even with increased depreciation and amortization expenses associated with completing the integration of the CQ Systems acquisition, our performance continued to drive profitability."

- The company’s balance sheet showed significant improvement, with cash, cash equivalents and certificates of deposit for the first quarter of fiscal 2006 of approximately $4.0 million, compared to cash, cash equivalents and certificates of deposit of approximately $346,000 in the first quarter of fiscal 2005.

- The total stockholders equity increased 119 percent to more than $19.7 million in the first quarter of fiscal 2006, compared to $8.1 million for the first quarter of fiscal 2005.

"The dramatic increase in revenue can be attributed mostly to increased service and maintenance contracts, new license sales, a healthy quarter at NetSol CQ, strong growth at the NetSol-TIG joint venture, and our new presence in Beijing, China. It’s especially exciting to see significant revenue growth within our subsidiaries and joint ventures," said Naeem Ghauri, Chief Executive Officer for NetSol Technologies. "We are thrilled by the growth of NetSol-TIG to more than 60 engineers and a forecast of over $1 million in revenue in the current fiscal year, since starting from scratch in March of 2005."

Ghauri continued, "With this across-the-board and global market demand for our services and LeaseSoft products, we are confident in our ability to continue NetSol’s profitability trend and achieve our guidance for the coming year."

First Quarter Business Highlights:

• NetSol and Oracle announce training partnership agreement – NetSol Technologies Ltd. named Official Oracle Approved Education Centre;
• Company reports 116 percent surge in revenue and first profitable year for fiscal 2005;
• NetSol signs new substantial contract to implement the entire LeaseSoft suite at Daimler Chrysler Financial Services in China;
• NetSol wholly owned subsidiary, CQ Systems, penetrates finance market by signing $400,000 contract with General Capital Group plc;
• Subsidiary NetSol Technologies, Ltd. completes IPO that was oversubscribed, and begins trading on the Karachi Stock Exchange;
• The stock of NetSol on KSE has traded high to Rs.41 or 61 percent higher than the IPO price of Rs.25;
• NetSol signs public sector contract exceeding $1.3 million for office automation;
• NetSol and Information Technology Matrix announce joint venture to target the European, Asian and Pacific Rim markets with IT security services;
• Asset finance industry veteran, Graham Tarrant, appointed new Chief Product Architect (CPA) for LeaseSoft;
• Tina Gilger appointed new Chief Financial Officer (CFO) for NetSol;
• New LeaseSoft contract with a top three automotive distributor in Japan valued at up to $500,000, includes software integration and services;
• New Asia-Pacific headquarters up and running in Beijing, China on July 1, 2005;
• NetSol maintains revenue guidance of $19 - $20 million for fiscal 2006.


About NetSol Technologies, Inc.

NetSol Technologies is an end-to-end solution provider for the lease and finance industry. Headquartered in Calabasas, CA, NetSol Technologies, Inc. operates on a global basis with locations in the U.S., Europe, East Asia and Asia Pacific. NetSol helps its clients identify, evaluate and implement technology solutions to meet their most critical business challenges and maximize their bottom line. By utilizing its worldwide resources, NetSol delivers high-quality, cost-effective IT services ranging from consulting and application development to systems integration and outsourcing. NetSol's commitment to quality is demonstrated by its achievement of both ISO 9001 and SEI (Software Engineering Institute)CMM (Capability Maturity Model) Level 4 assessment. For more information, visit NetSol Technologies' web site at www.netsoltek.com.


Securities Exchange Act of 1934

This release is comprised of inter-related information that must be interpreted in the context of all the information provided; accordingly, care should be exercised not to consider portions of this release out of context. This release is provided in compliance with Commission Regulation FD and contains certain "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21B of the Securities Exchange Act of 1934. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, goals, assumptions or future events or performance, are not statements of historical fact and may be "forward-looking statements." Forward looking statements are based on expectations, estimates and projections at the time the statements are made that involve a number of risks and uncertainties which could cause actual results or events to differ materially from those presently anticipated. Forward looking statements in this action may be identified through the use of words such as "expects", "will", "anticipates", "estimates", "believes", or statements indicating certain actions "may", "could", or "might" occur. Such statements reflect the current views of NetSol Technologies with respect to future events and are subject to certain assumptions, including those described in this release. Should one or more of the underlying assumptions prove incorrect, actual results may vary materially from those described herein as anticipated, believed or expected. NetSol Technologies does not intend to update these forward-looking statements prior to announcement of quarterly or annual results.