EMERYVILLE, CA - February 13, 2009 -- NetSol Technologies Inc. "NetSol"
(NASDAQ CM: NTWK) (NASDAQ DUBAI: NTWK), a U.S. corporation providing global business services and enterprise application solutions to private and public sector organizations worldwide, today announced second quarter financial results for fiscal year 2009, for the period ended December 31, 2008

FIRST HALF FISCAL 2009 RESULTS

• Revenues totaled $14.6 million, down 15% six months year-to-date
• Service fees totaled $8.3 million year-to-date
• License fees totaled $3.2 million year-to-date
• Maintenance fees totaled $3.1 million year-to-date
• Year-to-date GAAP net loss of $2.2 million, or a loss of $0.08 per fully diluted share, compared to GAAP net income of $1.3 million, or $0.05 per fully diluted share, in the year ago period
• Year-to-date EBITDA of $0.4 million, or $0.02 per diluted share, versus EBITDA of $3.3 million, or $0.14 per diluted share, in the year ago period.
  

Najeeb Ghauri, NetSol Technologies chairman and chief executive officer, commented, "Our fiscal second quarter 2009 was highlighted by a strategic evolution and expansion of our global business service offerings around our core areas of excellence in order to better position NetSol to navigate the historic deceleration in the global economic environment. The decline in year-over-year financial results was primarily a result of the lengthening, or delay, of purchasing decisions for high value software licenses and business services, related to the global economic slowdown. In response to the dramatic pullback within the global economy, we have taken steps to implement a range of streamlining and cost efficiency measures aimed at better aligning our resources to current business conditions.

"Strategically, our expansion into the vibrant and global SAP practice area through the acquisition of Ciena Solutions marked another major milestone in our long-term strategy and provides an entrée into one of the largest markets for information technology solutions and services within the industry. Our new U.S. based SAP Services Practice reflects the latest step forward in our expansion plans in the North American market. To adapt our execution to shifting end market conditions, we are also focusing on leveraging joint venture activities with international partners seeking to leverage our high quality, low cost offshore development capabilities as well as our CMMI Maturity Level 5 center of excellence. These potential joint venture opportunities would offer NetSol high quality recurring revenue streams, increased visibility, and long-term customer relationships. Furthermore, we are expanding our efforts in what we see as more recession resistant market segments where NetSol has areas of expertise such as global BestShoring IT solutions, business process outsourcing and hospital software management systems.

"Subsequent to the end of the quarter, the Company signed a letter of intent to acquire a majority stake in ID Interactive, a private U.K. based company, in a proposed transaction aimed at extending NetSol's software development capabilities into leading edge mobile technology and multimedia content delivery. Overall, as we navigate these historic market conditions, we believe that the long-term need for our IT software and services remains intact and the strategic adaptations we are making today will help better position NetSol to outperform once market conditions improve," concluded Mr. Ghauri.

NetSol reported consolidated revenues of $5.3 million for the second quarter of fiscal year 2009, representing a 37% decrease as compared to the $8.4 million in revenues reported for the same period a year ago. Consolidated gross profit for the second quarter was approximately $1.4 million, or 27% of total revenues.

U.S. GAAP (Generally Accepted Accounting Principles) net loss for the second quarter of fiscal year 2009 was approximately $3.3 million, or a loss of $0.12 per diluted share, which compares to GAAP net income of $0.4 million or $0.02 per diluted share, in the same period of fiscal year 2008. NetSol reported an EBITDA loss of $1.9 million, or a loss of $0.07 per diluted share, for the second quarter of fiscal year 2009 compared to EBITDA of $1.4 million, or $0.05 per diluted share, in the year ago period.

EBITDA is defined as earnings before interest, taxes, depreciation and amortization. The Company uses EBITDA as a measure of the Company's operating trends. Investors are cautioned that EBITDA is not a measure of liquidity or of financial performance under Generally Accepted Accounting Principles (GAAP). The EBITDA numbers presented may not be comparable to similarly titled measures reported by other companies. EBITDA, while providing useful information, should not be considered in isolation or as an alternative to net income or cash flows as determined under GAAP.

Consistent with the SEC Regulation G, the non-GAAP measures in this press release have been reconciled to the nearest GAAP measure, and this reconciliation is located under the financial table heading "Reconciliation to GAAP."

BUSINESS HIGHLIGHTS

• Invested in North American infrastructure, branding and market development building on the relocation of NetSol's global headquarters to the San Francisco Bay area, supporting future growth in the world's largest market for software and IT services.
• NetSol acquires Ciena Solutions LLC bringing SAP Consulting Services into the NetSol Solutions portfolio.
• SAP Solutions Practice joins the SAP® PartnerEdge(TM) program as an SAP services partner.
• Nissan Financial Services Australia Pty Ltd went live with Netsol Technologies' suite of financial products including licensing, customization and implementation of the NetSol Financial Suite (NFS) Credit Application Processing System (CAP), Contract Management System (CMS) for retail business operations and Wholesale Finance System (WFS) for wholesale finance management.
• NetSol was awarded a major consulting services contract with a leading commercial bank located in the United Arab Emirates to provide consultancy services in the areas of information security and quality engineering.
• NetSol signs Business Process Outsourcing agreement with the AJK Group to provide accounting services to the companies, trusts and foundations under the administration of AJK.
• Signed healthcare and public sectors projects in Pakistan.
• NetSol Financial Suite (NFS) of products expanded its platform to support the Alternative and Renewable Energy sector.
  Dan Lee named to the role of NetSol Chief Financial Officer, to further strengthen corporate team.
• NetSol University North America (NUNA), located at NetSol's new global headquarters, in Emeryville, California opens. The current course curriculum for 2009 includes introductory and advanced instruction in all components of the NetSol Financial Suite, including LeasePak, Contract Management System (CMS), Wholesale Finance System (WFS) and Credit Application & Processing (CAP).
• Annual NetSol Solutions Conference attended by more than 30 clients from around the world as the Company hosts a unique, interactive, customer forum focused on NetSol's Financial Suite product offerings, BestShoring solutions, global business services, and client delivery initiatives.

CONFERENCE CALL & WEBCAST INFORMATION

Following the distribution of the fiscal second quarter 2009 financial results, NetSol will host a conference call at 11:00 a.m. ET (8:00 a.m. PT) to review the quarterly financial and operational performance. Najeeb Ghauri, NetSol Technologies chairman and chief executive officer, will host the call, which will be webcast live. The webcast and a supporting slide presentation will be made available on the investor relations section of the NetSol corporate website at www.netsoltech.com. Telephone access to the conference call will be available in North America by dialing +1 (877) 407-0782 or internationally by dialing +1 (201) 689-8567.

An audio replay of the conference call will be available approximately two hours following the conclusion of the call and for the following 30 day period. To access the replay in North America, dial +1 (877) 660-6853 or, when calling internationally, dial +1 (201) 612-7415, using replay account code # 286 and conference ID # 311773. An archived replay of the conference webcast will also be available on the investor relations section of the NetSol corporate website at www.netsoltech.com.
About NetSol Technologies Inc.

NetSol Technologies, Inc. (NASDAQ CM: NTWK) (NASDAQ DUBAI: NTWK) is a worldwide provider of global business services and enterprise application solutions. Since its inception in 1995, NetSol has used its BestShoring* practices and highly experienced resources in analysis, development, quality assurance, and implementation to deliver high-quality, cost-effective solutions. Specialized by industry, these product and services offerings include credit and finance portfolio management systems, hospital/healthcare information management systems (HIMS), SAP consulting and services, custom development, systems integration, and technical services for the global Financial, Healthcare, Insurance, Energy, and Technology markets. NetSol's commitment to quality is demonstrated by its achievement of the ISO 9001, ISO 27001, and SEI (Software Engineering Institute) CMMI (Capability Maturity Model) Maturity Level 5 assessments, a distinction shared by fewer than 100 companies worldwide. NetSol Technologies' clients include Fortune 500 manufacturers, global automakers, financial institutions, utilities, technology providers, and government agencies. Headquartered in Emeryville, California, NetSol Technologies has operations and offices in Adelaide, Dubai, Beijing, Bangkok, Lahore, and London.

To learn more about NetSol Technologies, Inc., visit www.netsoltech.com.

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Forward-Looking Statements
This press release may contain 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.

Contacts:
NetSol Technologies, Inc. Investor Relations Dan Lee Christopher Chu Chief Financial Officer Grayling
Phone: +1 510-250-8899 Phone: +1 646-284-9426