NetSol International Resists Shareholder Attempt to Control Board
CALABASAS, Calif., May 3, 2001 (BUSINESS WIRE) -- The management team of NetSol
International, Inc. (NASDAQ:NTWK; www.netsol-intl.com) announced today that its
board of directors intends to vigorously resist a shareholder proposal to elect
a new board of directors.
"NetSol just reorganized its business to focus on its core competencies and is
extremely well positioned to maximize long-term value for its stockholders,"
NetSol's President Salim Ghauri, stated. "Throughout the past year, we have
developed key relationships with offshore customers, including Daimler Chrysler,
Singapore, Daimler Chrysler, Australia and Daimler Chrysler, Taiwan.
Additionally, we have continued to grow our pool of superior offshore software
developers. With the current management's strong IT background, NetSol is poised
to leverage these relationships to offer its products and IT services
worldwide," he added.
The four shareholders seeking to replace the board are led by Blue Water Master
Fund, a Netherlands, Antilles based hedge fund, and are believed to hold
approximately 25 percent of Netsol's outstanding common stock.
"Those candidates on the proposed slate do not have the skills required to
execute the NetSol business plan," stated Najeeb Ghauri, NetSol's chief
executive officer. "If those investors at Blue Water Master Fund had wanted to
maximize long-term stockholder value, they would have proposed a slate
consisting of people who understand the running of a complex offshore software
delivery engine - not one that includes a hospitality executive for a Formula
One race car concern and two Wall Street financiers."
NetSol International, Inc. anticipates filing a proxy statement in opposition to
the proposal to replace the Board. NetSol currently is considering all of its
alternatives with respect to the actions of Blue Water Master Fund involved in
the proxy solicitation.
About NetSol International Inc.
NetSol International Inc. is an ISO-9001 certified software developer in the
global information technology industry. With an international workforce of more
than 400 employees, NetSol specializes in software development, proprietary and
asset-based leasing and finance programs, IT consulting, and creation of
eBusiness and Web-based solutions for a growing list of blue-chip customers
worldwide. Clients include Daimler Chrysler Taiwan; Mercedes Benz Financing,
Australia; Mercedes Benz Leasing, Thailand; Volvo Finance Australia;
International Decision Systems, Inc.; St. George Bank, Australia; GMAC in
Australia; Debis Portfolio Systems, U.K.; VoiceStream; Prism Inc, USA; Global
One, USA; Clinical Interactions and Askari Leasing Ltd. For more information
about NetSol and its subsidiaries, visit the company's web site at
www.netsol-intl.com.
Safe Harbor Statement
This release contains forward looking statements relating to the development of
the Company's future business plans, products and operating results, including
statements regarding the Company that are subject to certain risks and
uncertainties that could cause actual events 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, and other factors described in the company's filings with
the Securities and Exchange Commission (SEC), including its Annual Report on
Form 10-K and Quarterly Reports on Form 10-Q. Readers are cautioned not to place
undue reliance on forward-looking statements, which speak only as of the date
hereof. The Company assumes no obligation to update information contained in
this release.
CONTACT: Cramer-Krasselt
Amy Dolnick, 312/616-3823
adolnick@c-k.com
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