NetSol Technologies Enters Into Enterprise Banking Software Development Partnership With an International Bank

NetSol Technologies, Inc. (NASDAQ: NTWK), a developer of proprietary software applications and provider of information technology (IT) services, today announced that it has entered into a development partnership and will be installing its inBanking(TM) product into an international bank. The agreement is expected to generate initial revenues of approximately $250,000.

This is the first installation of inBanking, a total solution banking system developed utilizing Microsoft.Net n-tier architecture. The Treasury Head Office is expected to go live in September/October of 2005 with a possible roll out to approximately 100 domestic branches later in the year.

NetSol has agreed to keep its clients identity confidential until the system goes live. The bank has operations in eight countries and inBanking may be deployed in a number of these international branches providing inBanking with further license revenues, global exposure and enhanced credibility.

About inBanking

inBanking helps banks manage their global trading activities, by providing global user configurable deal pricing, deal capture, risk management, deal processing, reconciliation, accounting, reporting and full general ledger functionality from a single platform. Furthermore, it will provide detailed reporting, both internally (MIS) and for the local and central regulatory authorities.

inBanking was developed to provide a one-stop solution for banks and to enable seamless straight through processing (STP). The product provides total automation -- from the deal captures process, confirmation and payment cycles -- through to reconciliation of third party statements of account and incoming confirmations.

inBanking will also be able to handle any individual component part in the chain such as deal capture, deal pricing, operations, or risk management while providing or receiving relevant information to and from in-house or external bank systems. inBanking will offer extensive exception handling and provide for automated resolution of exceptions. The product will also seamlessly enable pricing as well as extensive risk and position management.

inBanking has been under development since the acquisition of PTS. The PTS treasury product has been completely re-engineered into an n-tier.net architecture. This delayed the actual launch of the product but provided a cutting edge platform.

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 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, 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.

Contacts: Marty Tullio or Mark Tullio McCloud Communications, LLC 949.553.9748 marty@McCloudCommunications.com mark@McCloudCommunications.com NetSol Technologies: Najeeb U. Ghauri Chairman 818.222.9195 najeeb@netsoltek.com