CALABASAS, Calif., July 23, 2003 (PRIMEZONE) -- NetSol Technologies, Inc. (Nasdaq:NTWKC), a developer of proprietary software applications reported that there appears to be questions within its family of shareholders and members of the financial community relating to the recent extension granted by NASDAQ as well as the proposed reverse split of the company's common stock.
NetSol announced in a May 20, 2003 news release that its Board of Directors proposed that shareholders approve, at the Special Meeting of Shareholders to be held August 16, 2003, an amendment to NetSol's Articles of Incorporation that would affect a reverse stock split in the range of 5:1 to 7:1. The reverse split is intended to regain compliance with the continued listing requirements of NASDAQ's minimum bid price of $1.00.
NetSol announced in a July 16, 2003 news release that NASDAQ had granted the company an extension until August 18, 2003. On August 18, 2003, the company must attain the minimum closing bid price of $1.00 per share and then maintain the minimum bid price of $1.00 per share for a minimum of ten consecutive trading days (or longer if NASDAQ deems appropriate).
If NetSol's common stock meets the minimum bid price of $1.00 beginning on or before August 18 and continues meeting the minimum bid price for ten consecutive days thereafter, the company's Board of Directors will reevaluate the proposed reverse split of the company's common stock. With approval by the shareholders, the Board of Directors has until June 30, 2004 to affect a reverse split of the company's common stock if needed to maintain its listing on the NASDAQ Stock Market.
NetSol management and its Board of Directors request that shareholders vote their proxies and return them as quickly as possible.
About NetSol Technologies, Inc.
NetSol Technologies is an 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 3 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, such a meeting the $1.00 minimum bid within the allotted timeframe to maintain NASDAQ listing, are assumptions 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.