NetSol Technologies Announces Partnership With Australian Motor Finance Pty., Ltd.

Potential Multi-Million Dollar Revenue-Sharing Agreement for New Point-of-Sale Software Solution

NetSol Technologies, Inc. , a developer of proprietary software applications and provider of information technology (IT) services, today announced NetSol-Abraxas, its wholly-owned subsidiary, has formed a strategic partnership with Australian Motor Finance Pty., Ltd. (AMF), one of Australia's largest automotive lenders. Under terms of the potentially multi-million dollar partnership agreement, which provides for transaction-based revenue-sharing, NetSol will design and implement a customized point-of-sale (POS) system for AMF's wholesale funding initiatives.

NetSol will receive a payment for every deal accepted by AMF via its new NetSol point-of-sales system, in lieu of its standard license fee. The product launch will begin with the more than 100 dealers in New South Wales. This will be followed by roll-outs in Victoria, South Australia, Northern Australia, Queensland, and Western Australia. The initial target market exceeds 400 dealers with main lender systems already in place which are compatible with NetSol's new solution. The company then anticipates launching a version for the motorcycle, golf buggy, and boat finance markets.

"We are pleased to announce this significant new partnership with AMF, which provides for a recurring revenue stream with tremendous upside potential that could exceed $2 million within two years," said Fred Firth, Managing Director of NetSol-Abraxas, Australia. "In addition to being a unique partnership, the deliverable will be a more robust, technologically-advanced variant of the typical NetSol-Abraxas dealer system, OASYS, which already dominates the Australian car finance market."

The new AMF OASYS system will streamline what is already a popular alternative for car dealers who have had a finance deal declined by their primary finance source. The new system will enable dealers to re-submit the declined deals to AMF and process them automatically, as opposed to today's standard time consuming method of manual entry.

"Our research indicates that auto dealers in Australia are losing more than 10 percent of sales due to a lack of suitable finance products tailored to 'first chance' borrowers or those with a negative credit history," said Ian Brindley, Executive Director of Melbourne's Australian Motor Finance. "The big players in the auto finance market are often constrained by the sheer volume of deals processed daily, which limits the risk flexibility of their credit assessments. With the cutting-edge system from NetSol-Abraxas we can automatically capture and process these declined deals while the customer is still in the car dealership, thus exponentially increasing the number of applications we can process."

About Australian Motor Finance

Australian Motor Finance was formed in 1999 to commercialize an innovative motor vehicle lending product for the non-conforming market. It will allow the large and growing number of consumers who do not meet increasingly automated and "templated" financing requirements to purchase better quality motor vehicles. These customers can be defined as First Chance Borrowers -- traditionally the young or those without a finance history -- and Second Chance Borrowers -- people often with very minor credit defaults. Australian Motor Finance couples sophisticated account monitoring and collections platforms and policies with active account management, including face-to-face interviews, designed to reduce the risk of default. Flexible payment options, including timing of payments to coincide with payment of salaries and credit card payments, also reduce the risk of default.

About NetSol Technologies, Inc.

NetSol Technologies is a leading 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 3 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, assumption 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.

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