NetSol International Inc. (NTWK)

[Tingleff]

Transcript of interview:
http://news.stockselector.com/newsarticle.asp?symbol=NTWK&article=30947280

CEO discusses the size of the marketplace for NetSol International in Wall Street Transcript InterviewNAEEM GHAURI is CEO of NetSol International, Inc.

New York City, New York, Oct 16, 2001 (The Wall Street Transcript via COMTEX) -- Four analysts and top management from twelve sector firms examine the Payment & Financial Processing sector in this special 65-page issue from The Wall Street Transcript, available at (212/952-7433) or http://www.twst.com/info/info432.htm

TWST: Could you begin with a brief historical sketch and overview of NetSol International, Inc. (Nasdaq:NTWK)?

Mr. Ghauri: The company is into the software products and services businesses; we started about five years ago. Our initial focus was writing customized software for clients that were mainly in the automotive leasing business. We picked up clients like Daimler Chrysler very early on and using those as our base clients, we then grew the business into products. The products, the main knowledge came with our relationship with Daimler Chrysler, that we picked up a lot of business knowledge as a base for leasing finance and services business.So if you look at our business model, it’s very simple. We sell asset-base leasing finance products and services. Our main clients are in the finance industry as well as health care, so those are our core competencies. We write customized software as well as we write asset-based leading software/products.

TWST: But you focus on the automotive business in the broad scope?

Mr. Ghauri: That’s right, but, automotive business from a leasing perspective, from the finance side rather than on the logistics side.

TWST: How big is that market? Can you define that marketplace?

Mr. Ghauri: The leasing market in this country is about $200 billion a year or plus.

TWST: How about the software?

Mr. Ghauri: The software side of it, in the US alone, is about $300-$400 million a year.

TWST: Why is it that big? Why is there that much software required for this?

Mr. Ghauri: There are many components to this space. For example, there’s a front end where if you, as the recent customer, go to a dealer and lease a Ford or a Dodge or whatever. From a customer perspective, they give you a proposal, they check your credit and then they tell you "yes" or "no." There’s a middle part where they basically check your credit and the application goes through a number of different checks until they say "yes" or "no." There’s the backend, where after you have been given a lease contract, then it has to run over two or three four years to generate payments, receivables and payables. This is quite a complex accounting system. Finally, there’s a fourth piece where the dealer you go to get the car from, they actually finance their inventory also through banks. So there’s a wholesale side of the financing.These four different pieces are critical for any leasing and finance business to stay in operation. It’s a full ERP type of a solution. Then there are enhancements and then things change, technologies change, requirements or enhancements change, the way people do business changes and so there’s an ongoing requirement to enhance and support our products. We generate quite a bit of revenue from a services side.

TWST: Are you participating in all four of those market segments?

Mr. Ghauri: We are. We are the only company that has a fully integrated solution for all four of the components. Our competitors have either one or two solutions or they have older technologies. We use Web-based front-end and we have client server solutions for the middle part.

This special issue includes:

1) Payment & Financial Processing - In an in-depth (x,x00 words) Analyst Roundtable, Patrick Burton, Director at Salomon Smith Barney, Andrew Jeffrey, Principal at Robertson Stephens, Wayne Johnson, Senior Vice President at SunTrust Robinson-Humphrey, Tim Willi, Senior Analyst at A.G. Edwards & Sons, examine the outlook for the sector including outlook for debit cards , economic outlook and share specific stock recommendations.

2) The TWST confidential Off-The-Record survey of management performance at twenty-one sector firms asked market insiders about the ability of management teams to create shareholder value.

3) CEO and Sponsored interviews (average 2,500 words). Top management of twelve sector firms examine the outlook for their firm and the sector.

This interview is a small excerpt from a comprehensive interview published in The Wall Street Transcript on 10/15/01.

Naeem Ghauri

CONTACT: The Wall Street Transcript Corporation
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URL: http://www.twst.com




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