NetSol Wins 3 Million Dollar Contract To Manage PSEB's CMM Initiative; NetSol to Help 30 Software Companies Achieve CMM Assessment by 1st Quarter 2003.

Business Editors

CALABASAS, Calif.--(BUSINESS WIRE)--May 15, 2002

NetSol Technologies, Inc. (NASDAQ:NTWK), a global information technology consultant and software developer, today announced that its wholly owned subsidiary, NetSol PK Ltd., has signed a contract with PSEB (Pakistan Software Export Board) to implement a three million dollar program to help up to 30 chosen software companies in Pakistan to achieve CMM Level 2 assessment by the 1st Quarter of 2003. NetSol has been contracted to undertake 90% of the entire program.

The PSEB has allocated up to $100,000 for each of the software companies to use NetSol as the lead consultant, with additional help from National University of Science and Technology ("NUST"), to extend their expertise to companies to study their present software development and quality assurance cycles as well as define key process areas (KPAs) to get themselves up to CMM assessment criteria level. PSEB will choose 30 companies out of 700 companies registered with PSEB for CMM assessment, and will target them to achieve level 2 by the first quarter of 2003.

Speaking at a specially organized press conference in Islamabad yesterday, Suhail Shahid, Managing Director of PSEB said "The PSEB has appointed NetSol and NUST as consultants to PSEB to implement this vital program to strengthen the quality aspect of the local software houses." He further added, "India has 43 CMM certified IT companies which are helping them to achieve a $9 billion a year software export, while Pakistan has just one, NetSol, and there is a great need to increase this number to compete effectively in the international market.

"This is phase I of the contract which PSEB has allocated $100,000 per company. The IT Ministry has allocated three million dollars for Phase I of the contract.

"Since NetSol is the first and the only CMM level-2 assessed company and NUST is the leading science and technology university in Pakistan, both will provide hands on training and manage the turn key process to get each of the software houses, included in this program, to be ready for assessment by lead international assessors."

Salim Ghauri, President of NetSol, commented, "We are grateful to Mr. Shahid and the PSEB for their strong vote of confidence in NetSol's capabilities to run this ground breaking program." He further stated, "PSEB is very focused in placing Pakistan firmly on the global IT map, by committing a substantial amount in helping Pakistani companies to attain internationally recognized quality standards such as CMM and ISO. PSEB has also fully subsidized NetSol's own cost of its CMM implementation."

Salim Ghauri added, "We have been working diligently in the Pakistani market for a major breakthrough since last year. NetSol will have a 90% share of the work in this project because of its first hand experience in this field. NUST will be responsible for handling the training and logistics."

NetSol, being the major player in the IT industry of Pakistan, has committed substantial resources to educate other software companies in the benefits of "Quality Culture" through its entire organization. NetSol was the first IT company in Pakistan to achieve ISO certification back in 1998 and recently became the first to be assessed as a CMM level 2 company in Pakistan. Additionally, NUST is a well-established and highly acclaimed IT University in Pakistan and will play a vital role for overseeing the process of CMM assessment in this program.

Pakistan's IT industry has lost the initiative in international business due to a sheer lack of IT companies that have quality processes with ISO accreditation and CMM assessment, especially when bidding for projects in North America, where CMM is a benchmark to assess companies for their quality assurance. This program established by PSEB hopes to provide the proper tools to allow these companies to compete for projects all over the world.

NetSol and NUST have already built a methodology plan with PSEB to handle the Entire process of this activity.

About NetSol:

Headquartered in Calabasas, CA, NetSol Technologies (Nasdaq:NTWK - news) operates on a global basis with locations in the U.S., East Asia and Asia Pacific. NetSol helps their 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 has been delivering high quality, cost effective IT services ranging from consulting and application development to systems integration and outsourcing for years. Their commitment to quality is demonstrated by achieving both ISO 9001 and SEI (Software Engineering Institute) CMM (Capability Maturity Model) Level 2 certification.

About NUST:

NUST and NetSol recently signed an alliance agreement to bid jointly for large infrastructure projects in Pakistan. This contract is the first as a result of the alliance formed.

NUST is one of the new generations of Pakistani Universities with a progressive and innovative outlook. The University is envisaged to grow as a modern center of excellence for research and development in the fields of sciences and technology. The essence underlying the foundation of NUST is based on a unique spectral combination of engineering, medical and management skills, academic quality and spirit of excellence epitomizing its cherished objectives. NUST is committed to the provision of intellectual leadership and development of indigenous technology in the country and to emerge as a beacon of light for the country's scientific and technological progress.

Forward Looking Statement:

This release contains forward looking statements relating to the development of the Company's products and services and future operation results, including statements regarding the Company that are subject to certain risks and uncertainties that could cause actual results to differ materially from those projected. The words "believe," "expect," "anticipate," "intend," variations of such words, and similar expressions identify forward looking statements, but their absence does not mean that the statement is not forward looking. These statements are not guarantees of future performance and are subject to certain risks, uncertainties and assumptions that are difficult to predict. Factors that could affect the Company's actual results include the progress and costs of the development of products and services and the timing of the market acceptance of those products and services. A more detailed description of certain factors that could affect actual results include those factors discussed in the Company's filings with the United States Securities and Exchange Commission, including its annual report on Form 10-KSB. NetSol International, Inc. undertakes no obligation to update publicly any forward-looking statements to reflect new information, events or circumstances after the date of this release or to reflect the occurrences of unanticipated events. Readers are cautioned not to put undue reliance on forward-looking statements, which speak only as of the date of this release. 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.