CALABASAS, Calif., April 8, 2003 (PRIMEZONE) -- NetSol Technologies, Inc. (Nasdaq:NTWK), a developer of proprietary software applications, today announced that it has secured a $1 million revolving line of credit from United Kingdom-based DCD Trade Services Ltd, a subsidiary of DCD Holdings Ltd. In February 2003 DCD Holdings signed a $2.0 million investment agreement of which NetSol has already received approximately $260,000. DCD Holdings, one of NetSol's largest investors, has worldwide representation and manages investments of approximately $650 million.
The new line of credit is established to support new projects requiring an upfront cash outlay to begin the project. The company currently has a large list of new contracts and projects in the pipeline in Europe, the United States and Asia Pacific region.
"The new line of credit will allow us to accelerate our current growth trend," said NetSol Chairman Najeeb U. Ghauri. "We are experiencing significant demand for our products and services worldwide. We are slowly and steadily increasing our revenue stream despite a challenging worldwide business environment.
"The sales momentum of the second quarter, which exceeded our first quarter by more than 44 percent, is clearly associated with our suite of finance products achieving excellent acceptance in the market place," continued Ghauri. "Our goal is to reach breakeven on a pro forma basis by the end of the fiscal year 2003." Ghauri went on to note that because of the varying size and sophistication of the company's new customers, it is difficult to measure revenue on a quarter-to-quarter basis as the sales and installation cycle can span longer periods of time.
"We are pleased with NetSol's prospects and are in a position to provide a line of credit to fund their continued growth," commented Managing Director of the DCD Group Holdings, Shabir Randeree. NetSol has assembled a dedicated management team with a history of success, along with a proven offshore development business model and a suite of lease and finance software products that ensure sustainable growth and increased market share. Our far-reaching relationships within a variety of industries will allow us to present a wide range of opportunities to NetSol. We look forward to a long-term, mutually beneficial relationship between our two companies."
About NetSol Technologies, Inc.
NetSol Technologies is a leading end-to-end solution provider for the lease and finance Industry. LeaseSoft is the culmination of more than six years of effort involving domain experts, developers, project managers and end users. The result is a product that covers the complete gambit of Lease & Finance activities. Headquartered in Calabasas, CA, NetSol Technologies, Inc. operates on a global basis with locations in the U.S., UK, East Asia and Asia Pacific. NetSol helps its 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 many years. Their commitment to quality is demonstrated by achieving both ISO 9001 and SEI (Software Engineering Institute) CMM (Capability Maturity Model) Level 2 assessment.
About DCD Group
The DCD Group, headquartered in the United Kingdom, was founded in 1975. Today, it is an investment company with an array of interests from finance and property to information technology and leisure management. The company has an extensive network of offices from the United States to the Middle East, Southern Africa, India, Australia, and Pakistan. The dedicated DCD management and advisory team are ably supported by a loyal group of clients, investors, and bankers, all of who have contributed to the company's continued achievement and success. The Group's turnover in 2001 surpassed the $600 million mark for the first time in its history and it has investments under management approaching $650 million.
Securities Exchange Act of 1934
This release is comprised of inter-related information that must be interpreted in the context of all the information provided; accordingly, care should be exercised not to consider portions of this release out of context. This release is provided in compliance with Commission Regulation FD and contains certain "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21B of the Securities Exchange Act of 1934. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, goals, assumption or future events or performance, are not statements of historical fact and may be "forward-looking statements." Such statements reflect the current views of NetSol Technologies with respect to future events and are subject to certain assumptions, including those described in this release. Should one or more of the underlying assumptions prove incorrect, actual results may vary materially from those described herein as anticipated, believed or expected. NetSol Technologies does not intend to update these forward-looking statements prior to announcement of quarterly or annual results.