CALABASAS, Calif., July 30, 2003 (PRIMEZONE) -- NetSol Technologies, Inc. (Nasdaq:NTWKC), a developer of proprietary software applications, today announced that it has signed a Binding Letter of Intent to purchase United Kingdom-based Pearl Treasury Systems Ltd. (PTS). Under the terms of the agreement, NetSol will acquire PTS using the company's common stock. NetSol will issue up to 500,000 restricted shares of its common stock over a 12-month period as specified milestones are met by PTS management. NetSol intends to complete the acquisition within 30 days.
Founded in 2000, PTS provides a solution for treasury departments, a high revenue generating business for financial institutions where individual deal values are in the range of $10 million to over $1 billion. According to IBS Publishing, over 80 contracts for Treasury Systems were signed in 2002, representing approximately $155 million in revenues.
"Our focus on the banking and financial services industry has been very successful for NetSol," commented NetSol CEO Naeem Ghauri. "According to statistics from Meridian Research, the financial services sector will spend approximately $23.75 billion in 2003, increasing to $27 billion by 2004, for information technology (IT) services. Our reputation within the industry for the delivery of quality products and services to major financial institutions and our recent SEI CMM Lever 3 rating, positions NetSol to capture a sizable share of this growing market."
"Even in a slow economy, demand for integrated treasury systems by financial institutions has shown strong growth," continued Ghauri. "The PTS system meets our key objectives and offers several unique features that will provide NetSol additional competitive advantages for penetrating the niche treasury sector."
The PTS system will seamlessly handle foreign exchange and money market trading, trading in derivative products, risk management, credit control, pricing, and various interfaces for rate feeds, with one system platform. The system platform, modular in design, also allows financial institutions to purchase only the modules they require. The PTS system was developed over five years with a $4 million investment by owners.
"We are pleased to become a member of the NetSol family," said PTS Managing Director Noel Thurlow. "This association will provide PTS access to a strong international infrastructure and a mature development team that has recently received a SEI SW-CMM Level 3 rating. This is particularly important as PTS targets a niche market with sophisticated requirements and high profile customers."
About Pearl Treasury Systems Ltd
Pearl Banking Solutions (PBS) provides a complete but modular solution for Front, Middle and Back office Treasury requirements, incorporating all of the following instruments:
-- Foreign exchange -- Money market -- Long term securities -- Financial futures -- Over-the-counter derivatives -- OTC options -- Exchange traded options
In addition to this total coverage, a unique selling point of PTS is the flexibility of incorporating new instruments as they arise. PTS is a highly sophisticated, totally integrated treasury product operating real time. It has been specified and designed by Noel Thurlow, a leading authority in investment banking, to provide total treasury management. Advanced technology and innovative architecture provide the system with a comprehensive set of functions and complete flexibility.
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., Europe, 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, 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.