NetSol Technologies, Inc. Announces New National Security Contract With Government of Punjab

NetSol Technologies, Inc. (NASDAQ: NTWK), a developer of proprietary software applications and provider of information technology (IT) services, today announced that its wholly owned subsidiary, NetSol (Pvt.) Ltd., has signed a new agreement with the Information Technology Department of the Government of Punjab, Pakistan's largest province. Under the terms of the agreement, NetSol will develop a comprehensive Motor Transport Management Information System (MTMIS) solution for the Lahore district of Punjab. The system will streamline local and national security processes and facilitate communication and data sharing among key departments including police, environmental protection, highway development and safety, urban transport planning, and ministries of oil, energy, and petroleum. The agreement also provides for implementation, software integration, and ongoing support and maintenance.

"We are pleased to announce this comprehensive new contract with the Government of Punjab," said Salim Ghauri, President of NetSol Technologies, Inc. "MTMIS systems, by nature, must provide for a higher level of transaction intensity and greater degree of complexity than other registration and licensing databases. As such, we have developed a unique, modular system that meets the dynamic updating requirements for vehicle registration systems, while providing for advanced security functionality necessary to meet the objectives of local and national authorities."

NetSol will design, develop and implement a fully-integrated MTMIS solution, facilitating business processes, enabling information sharing, and streamlining all inter and intra-department communications. The MTMIS will be managed by the Vehicle Registration Authority, along with the local police and constituent districts, including local and provincial police, environmental protection authorities, Highway Safety and Penalty System Management, Urban Transport Planning and Management Authority, Income Tax Department, Highway Development Authority, and Ministries of Energy, Oil and Petroleum.

The new MTMIS system developed by NetSol will also be integrated with the driving licensing system and play a vital role as the central depository of data and information from which other external user groups and stakeholders need to rely upon for their own efficient functioning. Vehicle registration systems house a wide range of sensitive, dynamic (rapidly changing) information, thus viewed by law enforcement and government agencies as critical to local and national security. The dynamic nature deems these more reliable warehouses of data and information than other registration and licensing systems, such as the national identity, passport, domicile, and fire arms systems.

Ghauri went on to note that NetSol's system is unique in that historically, most developed countries have in place disparate systems, considered "islands of data" designed and operated by various authorities and geographical domains linked together to create the central data warehouse; Whereas the NetSol solution is novel in its modular, integrated design encompassing a total solution, in which modules have been clearly designed to work independently but enmesh and provide the complete management and administration environment.

In August of 2004, NetSol announced its first major contract with the IT department of the Government of Punjab. The contract was for the development of the Punjab Portal -- a province-wide Internet, strategic portal and government agency intranet. The agreement also provided for the subsequent integration of the comprehensive portal with other governmental departments and agencies.

About Punjab

Punjab, heralded as the "lifeline of Pakistan," is the most populous province of Pakistan. The province, which contains several major cities of the country including Lahore, Faisalabad, Rawalpindi, Multan and Gujranwala, plays a leading role in both government and in agricultural production. Punjab is also fast becoming recognized as an emerging hub for textiles, engineering, technology, and mining. The government of Punjab has recently announced an eGovernance mandate -- entailing the creation of a leading-edge, IT-enabled work environment in the public service sector; along with a goal to proliferate IT culture and build capacity in the provincial government departments. For more information, please visit http://punjab.gov.pk/.

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.