May 12 - 18, 2008

Microsoft in Pakistan is launching new products to help customers manage their infrastructure and move to a virtualized environment while also delivering business intelligence and next generation Web experiences to boost business results.

Recently, Microsoft Pakistan launched new enterprise products in one of the biggest product launches in the history of Microsoft. These products include Windows Server 2008, SQL Server 2008 and Visual Studio 2008. The IT professionals and developers around the world are already using these products to implement more secure platforms and web applications while reducing costs and speeding development.

Pakistan Microsoft and NetSol Technologies signed an enterprise agreement at the Netsol Office in Lahore under which NetSol will acquire Microsoft Desktop and Server Platform tools along with Core Infrastructure and Developer Tools.

The Developer Tools significantly improve the way developers handle data, enable them to share the data through process integration and reduce development time. With the Desktop and Server Platform tools, Netsol will enhance their performance for office automation and optimize their core infrastructure.

"Microsoft is committed to delivering greater benefit, enhanced security and peace of mind to our users by ensuring that our product lines provide the competitive edge to the users," Kamal Ahmed, Country Manager, Microsoft Pakistan while addressing a select gathering said on the occasion.

Chairman & CEO NetSol Technologies Ltd., Salim Ghauri, said on the occasion that NetSol opted for Microsoft, to deliver software and services that are flexible enough that any developer can use their interfaces and data to effectively integrate applications or to compose entirely new solutions. "By increasing the feasibilities of these products, we will provide our developers additional opportunity to innovate and deliver value for customers," he added.

S. M. Sani, Managing Director, International Office Products, stated, "We are very happy to implementing latest Microsoft Products at NetSol technologies. The implementation will help in creating a vibrant and state of the art infrastructure at NetSol and encourage other IT companies to adopt these latest technologies."

Moreover, NetSol Technologies Ltd. (Pakistan), ("NetSol PK"), a significant division of NetSol Technologies, Inc. (NASDAQ: NTWK) servicing the Asia-Pacific region, has announced financial results for the third quarter of fiscal year 2008, ended March 31, 2008.

As per third quarter fiscal year 2008 financial highlights, the company's revenues increased 17.1% over the third quarter of fiscal year 2007, gross profit rose 29.3% over the third quarter of fiscal year 2007, while net income increased 62.3% over the third quarter of fiscal year 2007.

NetSol PK is pleased to report solid growth during the fiscal third quarter as it reported revenues of Rs 325.973 million (US $5.19 million), which represent a 17.1% increase as compared to Rs 278.382 million (US $4.58 million) reported for the same period last year. Gross profit in the quarter rose 29.3% to Rs 194.132 million (US $3.08 million), as compared to Rs 150.127 million (US $2.47 million) reported in the third quarter of fiscal year 2007, a spokesman of the company said.

NetSol PK reduced its cost of sales in the quarter to 40.5% of revenue as compared to 46.1% in the fiscal third quarter of 2007. As a result, gross margin was improved to 59.6% compared to 54.0% in the corresponding quarter of last year. Moreover, the company's net profit margin improved significantly, approaching 47.0%, compared to 33.9% achieved in the same period a year ago. Diluted earnings per share trended upward to 2.56 Rupees per share (US $ 0.04 per share), compared to 1.58 Rupees per share (US $ 0.025 per share) reported in the corresponding quarter of fiscal year 2007.

Salim Ghauri, Chairman and Chief Executive Officer of NetSol Technologies Ltd. (Pakistan) and President of the Asia-Pacific division of NetSol Technologies, Inc. stated, "We are pleased to announce that NetSol PK closed several significant deals in the captive finance sector of Asia-Pacific region this quarter." Ghauri further commented, "Our recent stream of contract wins demonstrates that NetSol PK continues to generate significant interest and demand for its products and services in the Asia-Pacific region, and our business pipeline gives us a strong foundation for future growth."