Mercedes-Benz Japan Acquires NetSol's LeaseSoft Modules to Build Its MIS Database

    CALABASAS, Calif.--Jan. 15, 2003--NetSol Technologies Inc. , a developer of proprietary software applications, today announced that it has signed a contract with Mercedes-Benz Finance Co. Ltd. Japan (MBF Japan) to deploy the data module of its industry-leading LeaseSoft software product.
    NetSol cannot disclose the actual price of this initial contract due to confidentiality and competitive pricing reasons; and while the precise value of the contract will not be known until fully exercised, the fully integrated LeaseSoft solution can have a value in excess of US $1 million, with individual additional modules costing a minimum of $100,000 each.
    The LeaseSoft application will enable MBF Japan to further develop their IT environment, database integrity, and timely information availability, for managing their integrated information systems. Utilizing NetSol's LeaseSoft data module as the foundation of their new information system, MBF Japan will be able to streamline their complex data management requirements, and lay the groundwork for the additional automation of business processes through additional LeaseSoft modules.
    The MBF contract requires a team of NetSol analysts, software engineers and system architects meeting with a team of MBF business users in Tokyo to produce a comprehensive system for the data systems module, ongoing data capture and subsequent migration of data.
    NetSol views the contract with MBF Japan as an important step in continuing to further penetrate the Asian Pacific market. NetSol's LeaseSoft data module and additional modules are currently being used by a number of companies in the Asia Pacific region.
    NetSol President, Salim Ghauri said: "We have worked very hard to break into the huge Japanese asset based leasing market, which is the second biggest in the world after the U.S. NetSol is a strategic partner of MBF Japan in the Asia Pacific region and this contract shows the strength of our strong and growing relationship."
    He added, "We now look forward to new and growing opportunities in 2003, both within the DaimlerChrysler group and outside with new partners and customers."

    About MBF Japan

    MBF Japan was established in 1991 in Japan as DaimlerChrysler Services AG's first finance company in the Asia Pacific region. DaimlerChrysler Services AG is DaimlerChrysler's global financial services provider, and maintains vehicle financing companies in 39 countries. With a managed contract volume of euro 115 billion and more than 10,000 employees, DaimlerChrysler Services is the third largest captive financial services provider in the world.
    To cooperate with DaimlerChrysler Japan Co. Ltd., MBF Japan is committed to providing financing support of the finest quality to Mercedes-Benz (MB) customers and MB authorized dealers throughout the country.
    MBF's financial programs for passenger cars are the MB Auto Loan, the MB Auto Lease and the Welcome Plan, which is a balloon type loan. Furthermore, the Installment Sales and Auto Lease programs are made available for commercial vehicles and the company provides various consulting services for its financial plans.
    The Japanese leasing business market in 1999-2000 was US $69.91 billion. Only the United States is ahead of Japan at US $260 billion in leasing business. More than 142 leasing companies are active in Japan.

    About NetSol Technologies Inc. and LeaseSoft

    With headquarters in Calabasas, NetSol Technologies is in the business of information technology (IT) services. Since it was founded in 1997, the company has developed enterprise solutions that help clients use IT more efficiently in order to improve their operations and profitability and to achieve business results. NetSol's wholly owned subsidiary Network Solutions Pvt. Ltd. (NetSol PK) in Pakistan, develops the majority of the software for the company.
    NetSol PK was the first company in Pakistan to achieve the ISO 9001 accreditation. NetSol operates on a global basis with locations in the United States, 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. NetSol's commitment to quality is demonstrated by achieving both ISO 9001 and SEI (Software Engineering Institute) CMM (Capability Maturity Model) Level 2 assessment.
    LeaseSoft is NetSol's proprietary software product directed primarily at customers in the automobile finance and leasing industry worldwide. Developed over a six-year period, LeaseSoft is a sophisticated software systems application for the asset-based lease and finance industries. LeaseSoft is a completely integrated lease and finance package, with a series of five module-based products that can be marketed and utilized in an integrated system.
    These products are ePOS, Proposal Management System, Settlement Management System, Contract Management System and Wholesale Finance System. These five applications form the full suite of the asset-based lending enterprise resource planning applications.
    NetSol recently announced the inception of LeaseSoft, its suite of applications for the leasing and finance business, with the launch of a dedicated Web site, www.leasesoft.biz. LeaseSoft provides the user flexibility to implement either the entire suite or individual modules, depending upon the client requirement.

    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 Technologies 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.