Children's Technology Group and NetSol Intl. Sign Letter of Intent to Form International Joint Venture.

SANTA MONICA, Calif.--(BUSINESS WIRE)--Oct. 4, 1999--

New Joint Venture Will be Owned 50/50 by

NetSol Intl, and Children's Technology Group Inc. to be Named

Children's Technology Group, U.K.

NetSol International Inc., (OTC BB:NTWK) and 1st Net Technologies Inc. (OTC BB:FNTT) Monday announced that their subsidiaries, NetSol U.K. Ltd. and Children's Technology Group Inc. (CTG) signed a Letter of Intent to form a London-based corporation that will be granted exclusive marketing rights, for all of Europe, to the Crayon Crawler(TM) and the MindWalker(TM) technologies, currently owned by CTG.

Per the terms of the agreement, CTG will grant the new corporation, Children's Technology Group U.K. (CTG U.K.) the exclusive marketing rights for its 50 percent ownership and NetSol will in turn provide 1,000 man-hours of software programming for its 50 percent ownership.

"We are very excited about this business relationship. To have a team of programmers to edit our core technology for the European markets is awesome," said Gregory D. Writer, chief executive officer of Children's Technology Group.

"We have had a great deal of interest in the Crayon Crawler from Germany, Italy, Ireland and England. Now to have the dedicated staff and personnel to bring these possibilities to fruition is great for both companies."

NetSol Intl., through its wholly owned subsidiary Network Solutions Group Ltd. (NSGL), has an installed network base of more than 1,500 primary and secondary schools in England.

NSGL would be able to leverage its position and provide immediate exposure to the Crayon Crawler(TM) through its installed base, which includes up to 1 million children. The exposure generated in schools would help awareness in the mainstream market for safe Internet environments for children.

NSGL has already established a strong presence in the U.K. education sector, which is comprised of nearly 33,000 primary, secondary and specialized schools. Under this exclusive agreement, NetSol will jointly market the comprehensive suite of products to its existing corporate client base, as well as new customers throughout Europe.

"This joint venture creates new opportunities for expansion into the global education marketplace. Through NSGL we already have access to over 1,500 schools in the U.K. We intend to more than double that penetration by year-end 2000," said Naeem Ghauri, managing director of NetSol U.K. Ltd. and Network Solutions Group Ltd. U.K.

Children's Technology Group Inc. is committed to building the world's largest online community for children through the creation and development of innovative Internet products that provide fun, easy-to-use and meaningful tools for their education, entertainment, and exploration of the "Information Superhighway" in a safe and secure environment.

CTG's business model allows companies to "private label" the MindWalker(TM) technology and participate in revenue sharing with CTG.

The Crayon Crawler(TM) and the MindWalker(TM) technologies comprise a comprehensive suite of children-oriented software applications to provide a safe, secure and educational environment for children to navigate the Internet, send e-mail, play games and participate in real-time chat.

The browser application specifically addresses parents' and teachers' concerns about children's access to inappropriate online content by using an "include list" (a database of pre-approved Web sites).

The Crayon Crawler(TM) runs on the Internet Explorer 5.0 platform, and uses Microsoft (Nasdaq:MSFT - news) Agent technology and its two- and three-dimensional animated, talking cartoon characters that interact with children, read books and e-mail and answer "Help" questions.

A closed, secure and supervised client/server eliminates "spam," blocks inappropriate language and prevents access to the e-mail system and chat rooms from outside intrusion.

For more information and a free download of the Crayon Crawler visit www.crayoncrawler.com or www.childrenstechgroup.com.

NetSol International Inc., an Information Technology company, is the parent company of Network Solutions (Pvt.) Ltd., Network Solutions Group Ltd., NetSol U.K. Ltd. and NetSol USA Inc. NetSol became the first software developer in Pakistan to qualify for ISO 9001 certification.

The company has developed its own software systems targeted at the lease and finance industry. NetSol has developed an offshore business model, which offers cost efficiencies, core operating competencies and strong business relationships with blue chip customers worldwide.

NetSol has a full-fledged research and development facility in Lahore, Pakistan, which employs nearly 100 programmers, developers and engineers.

Safe Harbor Statement

The foregoing news release may include numerous forward-looking statements concerning the company's business and future prospects and other similar statements that do not concern matters of historical fact. The Federal securities laws provide a limited "safe harbor" for certain forward-looking statements. Forward-looking statements in this news release relating to product development, business prospects and development of a commercial market for technological advances are based on the company's current expectations. The company's current expectations are subject to all of the uncertainties and risks customarily associated with new business ventures including, but not limited to, market conditions, successful product development and acceptance, competition and overall economic conditions, as well as the risk of adverse regulatory actions. The company's actual results may differ materially from current expectations. Readers are cautioned not to put undue reliance on forward-looking statements. The company disclaims any intent or obligation to update publicly these forward-looking statements, whether as a result of new information, future events or for any other reason.