CALABASAS, Calif., May 22, 2003 (PRIMEZONE) -- NetSol Technologies, Inc. (Nasdaq:NTWK), a developer of proprietary software applications, announced today that it has filed a request for an oral hearing before the NASDAQ Listing Qualifications Panel to appeal NASDAQ's determination that the company no longer qualifies for continued listing on the NASDAQ Small Cap Market set forth in NASD Marketplace Rule 4310 (c) (4). Granting of the Company's request for a hearing will stay delisting of the company's securities pending the Panel's decision.
NetSol announced Tuesday, May 20 that its Board of Directors proposed that shareholders approve an amendment to affect a reverse stock split in the range of 5:1 to 7:1. The reverse stock split is intended to regain compliance with NASD Marketplace Rule 4310 (c) (4). The company understands that a meeting with the NASDAQ Listing Qualifications Panel typically occurs within 30-45 days from receipt of a company's request and that NetSol's common stock will continue to be traded on the NASDAQ SmallCap Market pending final decision by NASDAQ; of course, there can be no assurance that the NASDAQ Listing Qualifications Panel will grant the Company's request for continued listing.
NASDAQ has previously allowed NetSol Technologies to operate under an exception to the minimum bid price rule due to the pending approval of a proposed rule change by the Securities and Exchange Commission ("SEC"). The proposed rule change, if fully approved by the SEC would serve to lengthen the grace period for NASDAQ SmallCap Market companies that do not meet the minimum bid price requirements.
"We believe that the plan to be presented by management will allow the Listing Qualifications Panel to grant NetSol the allotted time necessary to remedy the $1 minimum bid qualification," commented NetSol CEO Naeem Ghauri. "We have been actively improving our revenue flow and communicating our success to our shareholders. These activities have significantly increased shareholder equity and created additional interest within the financial community. "
"We are focused on increasing our revenue and expanding our market share throughout Europe, the Middle East, Asia and the United States as the demand for our software, ISP and information technology services continues to grow," continued Ghauri. "The launch of LeaseSoft.CAP has significantly enhanced the visibility of NetSol and we intend to take advantage of this visibility to introduce our complete line of products and services to our target markets."
About NetSol Technologies, Inc.
NetSol Technologies is a leading end-to-end solution provider for the lease and finance industry. Headquartered in Calabasas, CA, NetSol Technologies, Inc. operates on a global basis with locations in the U.S., 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 years. Their commitment to quality is demonstrated by achieving both ISO 9001 and SEI (Software Engineering Institute) CMM (Capability Maturity Model) Level 2 assessment.
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." Forward looking statements are based on expectations, estimates and projections at the time the statements are made that involve a number of risks and uncertainties which could cause actual results or events to differ materially from those presently anticipated. Forward looking statements in this action may be identified through the use of words such as "expects," "will," "anticipates," "estimates," "believes," or statements indicating certain actions "may," "could," or "might" occur. 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.