EXHIBIT 99.1

NEWS RELEASE DATED September 15, 2009

NEWS RELEASE

NetSol Technologies Reports Fourth Quarter and

Fiscal Year 2009 Financial Results

Fourth Quarter Revenue of $6.9 Million Reflects 36% Sequential Revenue Growth

Higher Sales and a Significant Reduction in Operating Expense Drive Improvements in Reducing Sequential Quarterly GAAP Net Loss and Returning to EBITDA Profitability

EMERYVILLE, CA – September 15, 2009 -- NetSol Technologies Inc. “NetSol” (NASDAQ CM: NTWK) (NASDAQ DUBAI: NTWK), a U.S. corporation providing global business services and enterprise application solutions to private and public sector organizations worldwide, today announced fourth quarter financial results for fiscal year 2009, for the period ended June 30, 2009.

Fiscal Year 2009 Results

·   Revenues totaled $26.4 million, down 28% year-over-year

·   Service fees totaled $15.2 million

·   Maintenance fees totaled $6.5 million

·   License fees totaled $4.8 million

·   Full year GAAP net loss applicable to common shareholders of $8.2 million, or a loss of $0.30 per fully diluted share, compared to GAAP net income applicable to common shareholders of $4.8 million, or $0.19 per fully diluted share, in the year ago period

·   Full year EBITDA loss of $2.5 million, or EBITDA loss of $0.09 per diluted share, versus EBITDA of $9.1 million, or $0.35 per diluted share, in the year ago period

Najeeb Ghauri, NetSol Technologies chairman and chief executive officer, commented, “NetSol’s fiscal fourth quarter revenues exceeded the high end of our sequential growth range projection, rising 36%, driven by increased license and IT services sales. While our full year results reflect the challenges of the global economic downturn compared to a 2008 period which was the strongest in the company’s history, NetSol’s fiscal fourth quarter results provide clear evidence that our NetSol Financial Suite™ and global BestShoringÒ IT service offerings are gaining fresh momentum.  The success of our comprehensive cost efficiency measures yielded an impressive 23% reduction in fiscal fourth quarter operating expenses as compared to the year ago period.  Our more efficient operating expense base, combined with our renewed sequential revenue growth, drove material improvements in reducing the company’s sequential quarterly GAAP net loss as well as supported an important return to quarterly EBITDA profitability.

“I am pleased to report we enter our fiscal year 2010 witha significantly stronger pipeline, and are also seeing excellent new opportunities in the government and defense sectors. Looking ahead to fiscal 2010, we anticipate stronger full year results in terms of top and bottom line performance. If we couple our more efficient global operating structure with the fresh momentum on the sales side, we currently forecast a quarterly GAAP breakeven revenue run rate of approximately $8.0 million, and $6.5 million on a cash basis,” concluded Mr. Ghauri.

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NetSol reported consolidated revenues of $6.9 million for the fourthquarter of fiscal year 2009, representing a 35% decline as compared to the $10.5 million in revenues reported for the same period a year ago.

U.S. GAAP (Generally Accepted Accounting Principles) net loss applicable to common shareholders for the fourth quarter of fiscal year 2009 was approximately $0.9 million, or a loss of $0.03 per diluted share, which compares to GAAP net income applicable to common shareholders of $1.3 million, or $0.05 per diluted share, in the same period of fiscal year 2008.

NetSol reported EBITDA of $0.6 million, or $0.02 per diluted share, for the fourth quarter of fiscal year 2009 compared to EBITDA of $2.6 million, or $0.09 per diluted share, in the year ago period.

EBITDA is defined as earnings before interest, taxes, depreciation and amortization. The Company uses EBITDA as a measure of the Company’s operating trends. Investors are cautioned that EBITDA is not a measure of liquidity or of financial performance under Generally Accepted Accounting Principles (GAAP). The EBITDA numbers presented may not be comparable to similarly titled measures reported by other companies. EBITDA, while providing useful information, should not be considered in isolation or as an alternative to net income or cash flows as determined under GAAP. Consistent with the SEC Regulation G, the non-GAAP measures in this press release have been reconciled to the nearest GAAP measure, and this reconciliation is located under the financial table heading “Reconciliation to GAAP.”

Fourth Quarter Business Highlights

·   Signed a significant new NetSol Financial Suite™ contract with Minsheng Financial Leasing Company to deploy NetSol’s industry leading leasing suite

·   Secured a new licensing agreement with a major Chinese captive finance company to implement the NetSol Financial Suite™, including NetSol's flagship LeaseSoft solution

·   Major international automotive manufacturer signs LeaseSoft license contract for captive finance in China

·   Secured new European customer contract to implement Wholesale Finance System for a Netherlands based finance company

·   NetSol Technologies Europe wins a new contract to deploy its LeaseSoft suite at United Kingdom based  nationwide loan company

·   NetSol and Atheeb Group form Atheeb NetSol Limited, a software engineering and joint venture company focused on Saudi Arabia, GCC, and The Middle East

·   NetSol and Grupo Karims form NetSol GK Latin America, an IT services and software development joint venture serving the Americas

·   Announced new Neptune Software plc partnership, as well as first joint customer win, extending the reach of the NetSol Financial Suite™ and LeaseSoft Evolve product in Africa, as leasing is rapidly expanding as a financing solution across the continent

·   Launched beta version of smartOCI, an SAP compatible multiple catalog search engine

·   Subsequent to the quarter end, NetSol teamed with a top 5 U.S. defense contractor with a joint bid submitted for a significant multi-million dollar military contract in Pakistan

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Conference Call & Webcast Information

Following the distribution of the fiscal fourth quarter and full year 2009 financial results, NetSol will host a conference call today at 11:00 a.m. ET (8:00 a.m. PT) to review the quarterly financial and operational performance. Najeeb Ghauri, NetSol Technologies chairman and chief executive officer, will host the call, which will be webcast live. The webcast and a supporting slide presentation will be made available on the investor relations section of the NetSol corporate website at www.netsoltech.com. Telephone access to the conference call will be available in North America by dialing +1 (877) 407-0782 or internationally by dialing +1 (201) 689-8567.

An audio replay of the conference call will be available approximately two hours following the conclusion of the call and for the following 30 day period. To access the replay in North America, dial +1 (877) 660-6853 or, when calling internationally, dial +1 (201) 612-7415, using replay account code # 286 and conference ID # 331287. An archived replay of the conference webcast will also be available on the investor relations section of the NetSol corporate website at www.netsoltech.com.

About NetSol Technologies, Inc.

NetSol Technologies, Inc. (NASDAQ CM: NTWK) (NASDAQ DUBAI: NTWK) is a worldwide provider of global business services and enterprise application solutions. Since its inception in 1995, NetSol has used its BestShoringÒ practices and highly experienced resources in analysis, development, quality assurance, and implementation to deliver high-quality, cost-effective solutions. Specialized by industry, these product and services offerings include credit and finance portfolio management systems, hospital/healthcare information management systems (HIMS), SAP consulting and services, custom development, systems integration, and technical services for the global Financial, Healthcare, Insurance, Energy, and Technology markets. NetSol's commitment to quality is demonstrated by its achievement of the ISO 9001, ISO 27001, and SEI (Software Engineering Institute) CMMI (Capability Maturity Model) Maturity Level 5 assessments, a distinction shared by fewer than 100 companies worldwide. NetSol Technologies' clients include Fortune 500 manufacturers, global automakers, financial institutions, utilities, technology providers, and government agencies. Headquartered in Emeryville, California, NetSol Technologies has operations and offices in Adelaide, Bangkok, Beijing, Lahore, London, and San Pedro Sula.

To learn more about NetSol Technologies, Inc., visit www.netsoltech.com

To join the NetSol Technologies, Inc. email communications list, visit:

http://www.b2i.us/irpass.asp?BzID=897&to=ea&s=0

NetSol Technologies, Inc. Forward-looking Statement

This press release may contain forward looking statements relating to the development of the Company’s products and services and future operation results, including statements regarding the Company that are subject to certain risks and uncertainties that could cause actual results to differ materially from those projected. The words “believe,” “expect,” “anticipate,” “intend,” variations of such words, and similar expressions, identify forward looking statements, but their absence does not mean that the statement is not forward looking. These statements are not guarantees of future performance and are subject to certain risks, uncertainties, and assumptions that are difficult to predict. Factors that could affect the Company’s actual results include the progress and costs of the development of products and services and the timing of the market acceptance.

# # #

Contact – Investor Relations:

Christopher Chu

Grayling

Phone:  +1 646-284-9426

Email:   Christopher.chu@us.grayling.com

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Financial Tables Follow

NETSOL TECHNOLOGIES, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENT OF OPERATIONS

(Unaudited)

	For the quarter ended						For the Year ened
	June 30, 2009			June 30, 2008			June 30, 2009			June 30, 2008
Net Revenues:
License fees	$	1,283,700		$	4,915,813		$	4,786,332		$	12,685,039
Maintenance fees		1,727,900			1,749,871			6,499,419			6,306,321
Services		3,841,580			3,849,971			15,162,426			17,650,815
Total revenues		6,853,180			10,515,655			26,448,177			36,642,175
Cost of revenues
Salaries and consultants		2,135,294			2,728,921			9,787,965			10,071,664
Travel		341,589			746,745			1,334,879			1,719,743
Repairs and maintenance		80,051			72,692			370,487			405,140
Insurance		39,371			85,283			174,761			239,043
Depreciation and amortization		598,358			551,166			2,214,211			1,398,454
Other		1,107,766			548,587			3,316,031			1,890,100
Total cost of sales		4,302,429			4,733,394			17,198,334			15,724,144
Gross profit		2,550,751			5,782,261			9,249,843			20,918,031
Operating expenses:
Selling and marketing		636,374			904,562			3,115,883			3,722,470
Depreciation and amortization		497,716			517,321			1,973,997			1,939,502
Bad debt expense		(26,973	)		55,016			2,393,685			58,293
Salaries and wages		745,859			945,402			3,443,390			3,703,836
Professional services, including non-cash compensation		338,187			413,490			1,215,939			837,598
General and adminstrative		896,667			1,170,091			3,590,118			3,447,113
Total operating expenses		3,087,830			4,005,882			15,733,012			13,708,812
Income from operations		(537,079	)		1,776,379			(6,483,169	)		7,209,219
Other income and (expenses):
Loss on sale of assets		(96,564	)		(2,440	)		(404,820	)		(35,484	)
Beneficial conversion feature		(23,052	)		-			(40,277	)		-
Loss on extinguishment of debt		-			-			(1,000,000	)		-
Interest expense		(327,547	)		(82,043	)		(1,294,293	)		(626,708	)
Interest income		44,423			35,234			291,030			195,103
Gain on sale of subsidiary shares		351,522			-			351,522			1,240,808
Gain on foreign currency exchange rates		549,733			1,430,669			2,371,487			2,020,839
Other income and (expenses)		21,229			29,600			68,747			148,544
Total other income (expenses)		519,744			1,411,020			343,396			2,943,102
Net income (loss) before minority interest in subsidiary		(17,335	)		3,187,399			(6,139,773	)		10,152,321
Minority interest in subsidiary		(843,904	)		(1,749,625	)		(1,816,143	)		(5,038,115	)
Income taxes		(11,501	)		(75,710	)		(91,132	)		(121,982	)
Net income (loss)		(872,740	)		1,362,064			(8,047,048	)		4,992,224
Dividend required for preferred stockholders		(33,508	)		(33,508	)		(134,400	)		(178,541	)
Net income (loss) applicable to common shareholders		(906,248	)		1,328,556			(8,181,448	)		4,813,683
Other comprehensive loss:
Translation adjustment		(114,548	)		(1,329,381	)		(4,151,474	)		(2,394,994	)
Comprehensive income (loss)	$	(1,020,796	)	$	(825	)	$	(12,332,922	)	$	2,418,689
Net income (loss) per share:
Basic	$	(0.03	)	$	0.05		$	(0.30	)	$	0.20
Diluted	$	(0.03	)	$	0.05		$	(0.30	)	$	0.19
Weighted average number of shares outstanding
Basic		28,706,163			25,425,042			26,937,500			24,118,538
Diluted		28,706,163			27,303,554			26,937,500			25,997,049

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[NETSOL TECHNOLOGIES, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

	As of June 30, 2009			As of June 30, 2008
				Restated
ASSETS
Current assets:
Cash and cash equivalents	$	4,403,762		$	6,275,238
Restricted Cash		5,000,000			-
Accounts receivable, net of allowance for doubtful accounts of $2,504,714
and $108,538 for 2009 and 2008 respectively		11,394,844			10,988,888
Revenues in excess of billings		5,686,277			11,053,042
Other current assets		2,307,246			2,406,407
Total current assets		28,792,129			30,723,575
Property and equipment, net of accumulated depreciation		9,186,163			9,176,780
Other assets, long-term		204,823			1,866,437
Intangibles:
Product licenses, renewals, enhancements, copyrights,
trademarks, and tradenames, net		13,802,607			10,837,856
Customer lists, net		1,344,019			1,732,761
Goodwill		9,439,285			9,439,285
Total intangibles		24,585,911			22,009,902
Total assets	$	62,769,026		$	63,776,694
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable and accrued expenses	$	5,106,266		$	4,116,659
Current portion of loans and obligations under capitalized leases		6,207,830			2,280,110
Other payables - acquisitions		103,226			846,215
Unearned revenues		3,473,228			3,293,728
Due to officers		-			184,173
Dividend to preferred stockholders payable		44,409			33,508
Loans payable, bank		2,458,757			2,932,551
Total current liabilities		17,393,716			13,686,944
Obligations under capitalized leases, less current maturities		1,090,901			332,307
Convertible Notes Payable		5,809,508			-
Long-term loans; less current maturities		1,113,832			411,608
Total liabilities		25,407,957			14,430,859
Minority interest		6,383,310			7,857,969
Commitments and contingencies		-			-
Stockholders' equity:
Preferred stock, 5,000,000 shares authorized;
1,920 issued and outstanding		1,920,000			1,920,000
Common stock, $.001 par value; 95,000,000 shares authorized;
30,046,987; 25,545,482 issued and outstanding		30,047			25,545
Additional paid-in-capital		78,198,523			74,950,286
Treasury stock		(396,008	)		(35,681	)
Accumulated deficit		(41,253,152	)		(33,071,702	)
Stock subscription receivable		(842,619	)		(600,907	)
Common stock to be issued		220,365			1,048,249
Other comprehensive loss		(6,899,397	)		(2,747,924	)
Total stockholders' equity		30,977,759			41,487,866
Total liabilities and stockholders' equity	$	62,769,026		$	63,776,694

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NETSOL TECHNOLOGIES, INC. AND SUBSIDIARIES

STATEMENTS OF CASH FLOWS

(Unaudited)

	For the Years
	Ended June 30,
	2009			2008
				Restated
Cash flows from operating activities:
Net income (loss)	$	(8,047,048	)	$	4,992,224
Adjustments to reconcile net income (loss)
to net cash provided by (used in) operating activities:
Depreciation and amortization		4,188,208			3,337,956
Bad debt expense		2,393,685			58,293
Loss on sale of assets		404,820			35,484
Gain on sale of subsidiary shares in Pakistan		(351,522	)		(1,240,808	)
Minority interest in subsidiary		1,816,143			5,038,115
Stock issued for services		346,817			167,926
Fair market value of warrants and stock options granted		261,472			24,320
Beneficial conversion feature		40,277			-
Changes in operating assets and liabilities:
Increase in accounts receivable		(4,679,496	)		(4,123,995	)
Decrease in other current assets		3,740,567			(4,980,504	)
Decrease in long-term assets		43,889			229,622
Increase in accounts payable and accrued expenses		1,073,775			233,408
Net cash provided by/(used in) operating activities		1,231,588			3,772,041
Cash flows from investing activities:
Purchases of property and equipment		(2,093,618	)		(4,435,755	)
Sales of property and equipment		65,096			15,838
Payments of acquisition payable		(742,989	)		(879,007	)
Increase in intangible assets		(6,662,774	)		(4,829,369	)
Net cash used in investing activities		(9,434,284	)		(10,128,293	)
Cash flows from financing activities:
Proceeds from sale of common stock		712,770			1,500,000
Proceeds from the exercise of stock options and warrants		563,929			3,282,827
Purchase of subsidary stock in Pakistan		(281,347	)		-
Proceeds from sale of subsidiary stock		558,535			1,765,615
Finance costs incurred for sale of common stock		-			(10,000	)
Purchase of treasury stock		(360,328	)		(25,486	)
Restricted cash		(5,000,000	)		-
Proceeds from convertible notes payable		6,000,000			-
Dividend Paid to Preferred Shareholders		(33,508	)		-
Bank overdraft		159,551			85,335
Proceeds from bank loans		3,843,541			5,441,870
Payments on bank loans		947,870			(99,936	)
Payments on capital lease obligations & loans - net		(539,497	)		(3,409,496	)
Net cash provided by financing activities		6,571,516			8,530,729
Effect of exchange rate changes in cash		(240,296	)		90,597
Net increase in cash and cash equivalents		(1,871,477	)		2,265,074
Cash and cash equivalents, beginning of year		6,275,238			4,010,164
Cash and cash equivalents, end of year	$	4,403,762		$	6,275,238

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NETSOL TECHNOLOGIES, INC. AND SUBSIDIARIES

RECONCILIATION TO GAAP

(Unaudited)

	Three Months			Three Months		Fiscal Year			Fiscal Year
	Ended			Ended		Ended			Ended
	June 30, 2009			June 30, 2008		June 30, 2009			June 30, 2008
Net Income (loss) before preferred dividend, per GAAP	$	(872,740	)	$	1,362,064	$	(8,047,048	)	$	4,992,224
Income Taxes		11,501			75,710		91,132			121,982
Depreciation and amortization		1,096,074			1,068,487		4,188,208			3,337,956
Interest expense		327,547			82,043		1,294,293			626,708
EBITDA (loss)	$	562,382		$	2,588,304	$	(2,473,415	)	$	9,078,870
Weighted Average number of shares outstanding
Basic		28,706,163			25,425,042		26,937,500			24,118,538
Diluted		28,706,163			27,303,554		26,937,500			25,997,049
Basic EBITDA EPS	$	0.02		$	0.10	$	(0.09	)	$	0.38
Diluted EBITDA EPS	$	0.02		$	0.09	$	(0.09	)	$	0.35

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