EXHIBIT 99.1

NETSOL Technologies Reports Fiscal Third Quarter 2019 Financial Results

Sixth Consecutive Quarter of Profitability and Continued Topline Growth Driven by Core Business Strength, Successful Milestone Implementation In China for Previously Announced 12-Country, $110 Million Contract

CALABASAS, Calif., May 14, 2019 – NETSOL Technologies, Inc. (NASDAQ: NTWK), a global business services and enterprise application solutions provider, reported results for the fiscal third quarter ended March 31, 2019.

Third Quarter and Recent Operational Highlights

● Updates related to previously announced 12-country, $110 million contract with German auto manufacturing giant.

o Successfully implemented the full suite of NFS Ascent™ modules in China.

o Successfully implemented NFS Ascent Wholesale Finance System in Japan.

o Made continued progress with respect to additional NFS Ascent implementations in Singapore, Malaysia, Hong Kong, India and Thailand.

● Made significant strides in the ongoing implementation process for the deployment of NFS Ascent Retail and Wholesale platforms with European tier-one global auto captive in China related to the $30 million contract signed in September 2018.

● Continued implementation of NFS Ascent Retail platform at captive auto leasing company of a major US based auto manufacturer in China.

● Officially launched OTOZ Mobility Innovation Lab, which has been designed to enhance reach of NETSOL Ascent platform into car-sharing opportunities with new and existing auto captive finance customers.

● Announced strategic investment and partnership with Drivemate, the top car-sharing, peer-to-peer car rental service in Thailand, to implement new technology in exchange for future minority interest in the company, providing for a low-risk testing environment for OTOZ with a built-in customer.

● Continued to build out capabilities in intelligent technologies such as artificial intelligence, machine learning, blockchain, IoT and cloud native architectures to help future proof core business and innovate around new opportunities, specifically car sharing and peer-to-peer sharing as well as subscription and data driven business models.

Fiscal Third Quarter 2019 Financial Results

Total net revenues for the third quarter of fiscal 2019 were $17.1 million, compared with $17.0 million in the prior year period. The increase in total net revenues was primarily due to an increase in total services revenues of $256,000, which was offset by a decrease in total license fees of $113,000 and total maintenances fees of $61,000.

● Total license fees were $2.5 million, compared with $2.6 million in the prior year period.

● Total maintenance fees were $3.7 million, compared with $3.8 million in the prior year period.

● Total services revenues were $10.9 million, compared with $10.6 million in the prior year period.

Gross profit for the third quarter of fiscal 2019 was $8.6 million (or 50.0% of total net revenues), compared to $9.2 million (or 53.9% of total net revenues) in the third quarter of fiscal 2018. The decrease in gross profit as a percentage of net revenues was due to an increase in the cost of revenues of 719,000. The increase in cost of revenue was predominantly driven by increases in travel and other expenses associated with increased implementation needs for the significant new wins recorded in previous quarters, which are expected to be invoiced to clients and subsequently reimbursed. The increase in cost of revenues was offset by decreases in salaries and consultants’ costs, decreases in depreciation and amortization costs as well as an increase in total net revenues of $83,000.

Operating expenses for the third quarter of fiscal 2019 increased to $6.5 million (or 37.7% of total net revenues) from $6.4 million (or 37.8% of total net revenues) for the third quarter of fiscal 2018. The increase in operating expenses was primarily due to increases in research and development expenses and depreciation which were offset by decreases in selling and marketing expenses, salaries and wages, professional services, and general and administrative expenses.

Net income attributable to NETSOL for the third quarter of fiscal 2019 totaled $1.3 million or $0.11 per diluted share, a decrease from net income of $2.9 million or $0.26 per diluted share in the third quarter of fiscal 2018. The decrease in net income was primarily due to a decrease in foreign currency exchange transactions to $47,000 in the third quarter of fiscal 2019 compared to $2.6 million for the third quarter of fiscal 2018.

Non-GAAP adjusted EBITDA for the third quarter of fiscal 2019 totaled $2.2 million or $0.19 per diluted share, compared to $4.3 million or $0.39 per diluted share in the third quarter of fiscal 2018 (see note regarding “Use of Non-GAAP Financial Measures,” below for further discussion of this non-GAAP measure).

At March 31, 2019, cash and cash equivalents were $17.0 million, an increase from $12.7 million at the end of the prior year quarter.

Management Commentary

“In the fiscal third quarter, we continued to execute in all areas of our core business, enabling us to achieve certain major operational milestones that positively impacted our financial and operational performance,” said company Co-Founder, Chairman and Chief Executive Officer Najeeb Ghauri. “More specifically, our successful ‘Go Live’ in China this past March represented the greatest single deployment of our Ascent platform in the largest leasing market in the Asia Pacific region. We’ve now generated profitable results from operations for six consecutive quarters and have continued to sequentially improve our topline throughout the course of the fiscal 2019. In the near term, we remain on track to achieve our previously stated goal of double-digit revenue growth for the year. Going forward, we’re continuing to position ourselves effectively for the long term through new initiatives like our recently launched OTOZ Mobility Innovation Lab, which will allow us to expand reach of our existing platform into new growth opportunities.”

Sales Outlook

“We are continuing to generate a healthy mix of business opportunities, through both implementation execution and up-selling to our current client base as well as by expanding on our already-robust international pipeline,” added President and Head of Sales Naeem Ghauri. “NFS Ascent continues to be the main growth driver for our core operations, and we’re seeing great interest in upgrades from existing clients as well as RFPs from potential new clients.

“With the recent launch of our OTOZ Innovation Lab, there has been an incredibly strong response from the market, particularly around the platform’s capabilities in blockchain and artificial intelligence. As mobility becomes redefined, our industry is entering a period of significant evolution and also disruption. New, emerging models for car and ride sharing, where these technologies of the future should play a central role, will help define the leading solutions going forward. With Ascent and OTOZ together, NETSOL has established two major platforms that have the ability to address and leverage these new models for many years to come.”

Conference Call

NETSOL Technologies management will hold a conference call today (May 14, 2019) at 11:00 a.m. Eastern time (8:00 a.m. Pacific time) to discuss these financial results. A question and answer session will follow management’s presentation.

U.S. dial-in: 1-877-407-0789

International dial-in: 1-201-689-8562

Please call the conference telephone number 5-10 minutes prior to the start time. An operator will register your name and organization. If you have any difficulty connecting with the conference call, please contact Gateway Investor Relations at 1-949-574-3860.

The conference call will be broadcasted live and available for replay here and via the Investor Relations section of NETSOL’s website.

A replay of the conference call will be available after 2:00 p.m. Eastern time on the same day through May 28, 2019.

Toll-free replay number: 1-844-512-2921

International replay number: 1-412-317-6671

Replay ID: 13689882

About NETSOL Technologies

NETSOL Technologies, Inc. (NASDAQ: NTWK) is a worldwide provider of IT and enterprise software solutions primarily serving the global Leasing and Finance industry. The company’s suite of applications is backed by 40 years of domain expertise and supported by a committed team of approximately 1,350 professionals placed in eight strategically located support and delivery centers throughout the world. NFS, LeasePak, LeaseSoft or NFS Ascent – help companies transform their Finance and Leasing operations, providing a fully automated asset-based finance solution covering the complete leasing and finance lifecycle.

Forward-Looking Statements

Certain statements in this press release are forward-looking in nature, including, but not limited to, expected net revenue and the demand for and sales lifecycle of NFS Ascent, and accordingly, are subject to certain risks and uncertainties that could cause actual results to differ materially from those projected. The words “expects,” “anticipates,” variations of such words, and similar expressions, identify forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, 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. The subject Companies expressly disclaim any obligation or undertaking to update or revise any forward-looking statement contained herein to reflect any change in the company’s expectations with regard thereto or any change in events, conditions or circumstances upon which any statement is based.

Use of Non-GAAP Financial Measures

The reconciliation of Adjusted EBITDA to net income, the most comparable financial measure based upon GAAP, as well as a further explanation of adjusted EBITDA, is included in the financial tables in Schedule 4 of this press release.

Investor Relations Contact:

Matt Glover and Tom Colton

Gateway Investor Relations

949-574-3860

investors@netsoltech.com

NETSOL Technologies, Inc. and Subsidiaries

Schedule 1: Consolidated Balance Sheets

	As of March 31, 2019			As of June 30, 2018
ASSETS
Current assets:
Cash and cash equivalents	$	17,014,590		$	22,088,853
Accounts receivable, net of allowance of $373,329 and $610,061		15,971,676			12,775,461
Accounts receivable, net - related party		3,012,133			3,374,272
Revenues in excess of billings		13,381,205			14,285,778
Revenues in excess of billings - related party		61,822			-
Convertible note receivable - related party		3,250,000			2,123,500
Other current assets		3,593,057			2,703,032
Total current assets		56,284,483			57,350,896
Revenues in excess of billings, net - long term		-			1,206,669
Property and equipment, net		14,374,262			16,165,491
Long term investment		2,501,299			3,217,162
Other assets		23,994			70,299
Intangible assets, net		9,042,726			12,247,196
Goodwill		9,516,568			9,516,568
Total assets	$	91,743,332		$	99,774,281
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable and accrued expenses	$	6,881,435		$	7,873,809
Current portion of loans and obligations under capitalized leases		8,111,332			8,595,919
Unearned revenues		6,241,741			5,949,581
Common stock to be issued		88,324			88,324
Total current liabilities		21,322,832			22,507,633
Loans and obligations under capitalized leases; less current maturities		716,563			330,596
Total liabilities		22,039,395			22,838,229
Commitments and contingencies
Stockholders’ equity:
Preferred stock, $.01 par value; 500,000 shares authorized;		-			-
Common stock, $.01 par value; 14,500,000 shares authorized; 11,879,056 shares issued and 11,673,203 outstanding as of March 31, 2019 and 11,708,469 shares issued and 11,502,616 outstanding as of June 30, 2018		118,791			117,085
Additional paid-in-capital		127,551,606			126,479,147
Treasury stock (At cost, 205,853 shares and 205,853 shares as of March 31, 2019 and June 30, 2018, respectively)		(1,205,024	)		(1,205,024	)
Accumulated deficit		(38,704,519	)		(37,994,502	)
Stock subscription receivable		(221,000	)		(221,000	)
Other comprehensive loss		(28,474,832	)		(24,386,071	)
Total NetSol stockholders’ equity		59,065,022			62,789,635
Non-controlling interest		10,638,915			14,146,417
Total stockholders’ equity		69,703,937			76,936,052
Total liabilities and stockholders’ equity	$	91,743,332		$	99,774,281

NETSOL Technologies, Inc. and Subsidiaries

Schedule 2: Consolidated Statement of Operations

	For the Three Months						For the Nine Months
	Ended March 31,						Ended March 31,
	2019			2018			2019			2018
Net Revenues:
License fees	$	2,536,320		$	2,648,870		$	13,310,002		$	3,210,868
Maintenance fees		3,562,412			3,659,998			10,735,432			10,702,171
Services		10,519,219			9,345,210			25,175,187			25,450,138
License fees - related party		-			-			-			261,513
Maintenance fees - related party		142,344			105,325			370,723			309,539
Services - related party		366,760			1,284,417			934,883			4,374,802
Total net revenues		17,127,055			17,043,820			50,526,227			44,309,031
Cost of revenues:
Salaries and consultants		4,833,611			5,418,067			14,351,227			16,244,319
Travel		1,793,964			425,060			4,652,143			1,226,073
Depreciation and amortization		874,654			1,127,077			2,692,306			3,468,293
Other		1,067,506			880,897			3,176,602			2,677,465
Total cost of revenues		8,569,735			7,851,101			24,872,278			23,616,150
Gross profit		8,557,320			9,192,719			25,653,949			20,692,881
Operating expenses:
Selling and marketing		1,864,990			1,962,402			5,614,619			5,605,838
Depreciation and amortization		252,442			231,308			658,453			699,966
General and administrative		3,833,209			4,048,271			12,241,988			11,862,535
Research and development cost		513,770			197,643			1,256,577			572,619
Total operating expenses		6,464,411			6,439,624			19,771,637			18,740,958
Income (loss) from operations		2,092,909			2,753,095			5,882,312			1,951,923
Other income and (expenses)
Gain (loss) on sale of assets		16,380			40,537			65,170			24,468
Interest expense		(70,447	)		(102,522	)		(233,685	)		(330,268	)
Interest income		201,084			142,356			680,469			394,837
Gain on foreign currency exchange transactions		47,218			2,550,394			2,594,885			5,304,723
Share of net loss from equity investment		(245,389	)		(263,678	)		(843,373	)		(534,576	)
Other income		3,116			314			12,998			15,924
Total other income (expenses)		(48,038	)		2,367,401			2,276,464			4,875,108
Net income before income taxes		2,044,871			5,120,496			8,158,776			6,827,031
Income tax provision		(275,476	)		(261,182	)		(777,262	)		(486,980	)
Net income		1,769,395			4,859,314			7,381,514			6,340,051
Non-controlling interest		(501,835	)		(1,994,869	)		(2,295,736	)		(3,210,683	)
Net income attributable to NetSol	$	1,267,560		$	2,864,445		$	5,085,778		$	3,129,368
Net income (loss) per share:
Net income (loss) per common share
Basic	$	0.11		$	0.26		$	0.44		$	0.28
Diluted	$	0.11		$	0.25		$	0.44		$	0.28
Weighted average number of shares outstanding
Basic		11,656,098			11,190,048			11,580,066			11,118,529
Diluted		11,691,342			11,268,842			11,615,310			11,152,365

NETSOL Technologies, Inc. and Subsidiaries

Schedule 3: Consolidated Statement of Cash Flows

	For the Nine Months
	Ended March 31,
	2019			2018
Cash flows from operating activities:
Net income	$	7,381,514		$	6,340,051
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation and amortization		3,350,759			4,168,259
Share of net loss from investment under equity method		843,373			534,576
Gain on sale of assets		(65,170	)		(24,468	)
Stock based compensation		980,682			1,281,763
Fair market value of stock options		43,612			-
Changes in operating assets and liabilities:
Accounts receivable		(4,249,540	)		(17,848,921	)
Accounts receivable - related party		(461,435	)		(2,634,063	)
Revenues in excess of billing		(6,862,451	)		5,904,161
Revenues in excess of billing - related party		(97,359	)		(85,743	)
Other current assets		(1,189,909	)		(796,126	)
Accounts payable and accrued expenses		(540,615	)		1,139,509
Unearned revenue		611,157			4,273,007
Net cash provided by (used in) operating activities		(255,382	)		2,252,005
Cash flows from investing activities:
Purchases of property and equipment		(2,590,302	)		(1,107,732	)
Sales of property and equipment		1,005,214			348,762
Convertible note receivable - related party		(1,126,500	)		(550,000	)
Investment in WRLD3D		-			(50,000	)
Purchase of subsidiary shares from open market		-			(33,987	)
Net cash used in investing activities		(2,711,588	)		(1,392,957	)
Cash flows from financing activities:
Proceeds from the exercise of stock options and warrants		85,000			215,311
Proceeds from exercise of subsidiary options		2,650			10,349
Restricted cash		-			90,000
Purchase of treasury stock		-			(750,714	)
Dividend paid by subsidiary to non-controlling interest		(566,465	)		(417,853	)
Proceeds from bank loans		1,337,092			696,936
Payments on capital lease obligations and loans - net		(298,610	)		(961,901	)
Net cash provided by (used in) financing activities		559,667			(1,117,872	)
Effect of exchange rate changes		(2,666,960	)		(1,202,147	)
Net decrease in cash and cash equivalents		(5,074,263	)		(1,460,971	)
Cash and cash equivalents at beginning of the period		22,088,853			14,172,954
Cash and cash equivalents at end of period	$	17,014,590		$	12,711,983

NETSOL Technologies, Inc. and Subsidiaries

Schedule 4: Reconciliation to GAAP

	Three Months			Three Months			Nine Months			Nine Months
	Ended			Ended			Ended			Ended
	March 31, 2019			March 31, 2018			March 31, 2019			March 31, 2018
Net Income (loss) before preferred dividend, per GAAP	$	1,267,560		$	2,864,445		$	5,085,778		$	3,129,368
Non-controlling interest		501,835			1,994,869			2,295,736			3,210,683
Income taxes		275,476			261,182			777,262			486,980
Depreciation and amortization		1,127,096			1,358,385			3,350,759			4,168,259
Interest expense		70,447			102,522			233,685			330,268
Interest (income)		(201,084	)		(142,356	)		(680,469	)		(394,837	)
EBITDA	$	3,041,330		$	6,439,047		$	11,062,751		$	10,930,721
Add back:
Non-cash stock-based compensation		154,551			448,233-			1,024,294			1,281,763
Adjusted EBITDA, gross	$	3,195,881		$	6,887,280		$	12,087,045		$	12,212,484
Less non-controlling interest (a)		(959,955	)		(2,540,702	)		(3,600,485	)		(4,804,869	)
Adjusted EBITDA, net	$	2,235,926		$	4,346,578		$	8,486,560		$	7,407,615
Weighted Average number of shares outstanding
Basic		11,656,098			11,190,048			11,580,066			11,118,529
Diluted		11,691,342			11,268,842			11,615,310			11,152,365
Basic adjusted EBITDA	$	0.19		$	0.39		$	0.73		$	0.67
Diluted adjusted EBITDA	$	0.19		$	0.39		$	0.73		$	0.66
(a) The reconciliation of adjusted EBITDA of non-controlling interest to net income attributable to non-controlling interest is as follows
Net Income attributable to non-controlling interest	$	501,835		$	1,994,869		$	2,295,736		$	3,210,683
Income Taxes		109,957			65,798			251,321			106,221
Depreciation and amortization		360,071			449,828			1,064,203			1,382,148
Interest expense		22,173			31,865			75,082			105,400
Interest (income)		(43,905	)		(43,702	)		(165,020	)		(125,777	)
EBITDA	$	950,131		$	2,498,658		$	3,521,322		$	4,678,675
Add back:
Non-cash stock-based compensation		9,824			42,044			79,163			126,194
Adjusted EBITDA of non-controlling interest	$	959,955		$	2,540,702		$	3,600,485		$	4,804,869