Newsletter

You can unsubscribe from this list at any time by Clicking Here and HITTING SEND. You can also unsubscribe by going to http://listserv.otcjournal.com and entering your email address there while selecting unsubscribe.


OTC Journal Newsletter
August 14, 1999	Volume II, Issue 36

Email : info@otcjournal.com
URL : http://www.otcjournal.com

To OTC Journal Members:

Our best performing profile of 1999 has clearly been NetSol International (OTC BB: NTWK). This software developer, which has created leasing solutions for Mercedes-Benz Finance companies world wide, has been profitable since they opened their doors four years ago. When we released our original profile back in January, the company was called Mirage Holdings, and it was trading at $3.75. It immediately charged up to $4.50, then slid back down to a low of $2 and changed names to more accurately reflect the company's true business.

On Friday, NetSol closed at $5.125, very near the all time high for the stock since we released the original profile. NetSol is up 46% since that time, and up 250% from the low since releasing our original coverage.

This stock fits our model perfectly of finding companies on behalf of our members that we feel have the potential to provide 100% to 300% returns to investors that are willing to hold for a one to two year period of time. NetSol is easily on track to provide those types of returns in the first full year of coverage.

In our last edition we pointed out that NetSol's performance has been particularly remarkable considering the recent market bloodbath in the technology sector. One of our members pointed out that Intel and Apple are both trading at highs for 1999. While this is quite true, we would like to point out that neither of these companies is likely to experience a 300% growth rate from fiscal 1999 to fiscal 2000. NetSol is expected to come in with about $5 million in sales in fiscal 1999 (end of June), and is on track to achieve as much as $15 million in fiscal 2,000.

Lately the market has been looking for economic excuses to believe that interest rates are going up, therefore sending stocks spiraling down. Friday's market action may have turned the tide, and analysts may now be looking for excuses to believe that interest rates will go down, creating a more favorable environment for stocks.

Based on a news release which came out after the market closed on Friday, this $15 million estimate for fiscal 2,000 can be ramped up considerably. Yesterday, NetSol filed a news release with NASDAQ Stock Watch which will hit the Internet wires on Monday morning.

NetSol International announced the completion of an acquistion. For a mere 155,000 shares of restricted stock (less than 2% dilution), NetSol International acquired 100% of the outstanding shares of Network Solutions Group Limited, an UK based information technology company.

In the press release it was noted that Network Solutions Group achieved $2.75 million in sales in 1998. More importantly, this acquisition opens the door to participating in the $1.25 Billion that the British Government has set aside for the education system in England over the next three years.

In a discussion with management at NetSol yesterday we learned that they are confident that $20 million in sales for fiscal 2,000 is possible, but of course there are no guaranttees. We also learned that two institutions have begun accumulating shares of NetSol, but we were unable to learn the names of the funds. This news comes on the heels of NetSol's announcement that it had filed an application for a NASDAQ listing, which will expand this stock's audience considerably.

We are getting this news out to our members before it is widely distributed, which gives you a competitive advantage over other investors. Many traders believe that stocks that are making news highs will continue to go higher. When you invest in a company which achieves $5 million in sales in one year, and is likely to hit $20 million in sales the following year, your chances for appreciation are greatly enhanced.

Here is the complete text of the news release we received from the Company.

Press Release
August 13, 1999

NETSOL INTERNATIONAL, INC. ACQUIRES NETWORK SOLUTIONS LTD
Acquisition expected to increase NTWK’s prospects in $1.25 billion market

Santa Monica, CA – NetSol International, Inc. (OTC BB: NTWK) (“NetSol”) announced that it has acquired 100 percent of the capital stock of United Kingdom based Network Solutions Group Limited (“NSGL”) an information technology (IT) company. NetSol International, Inc., in an all stock transaction, exchanged 155,000 shares of its restricted common stock for 100 percent of NSGL’s capital stock.

NSGL is a four-year-old privately held company with two offices in the U.K. NSGL has 15 employees and had 1998-year end revenue of approximately $2,750,000. NSGL offers high quality, comprehensive IT-related solutions to the networking and information technology markets. The company has established a strong presence in the U.K education sector, which is comprised of nearly 33,000 primary, secondary and specialized schools. NSGL has an installed customer base of over 1,500 primary and secondary schools.

NSGL has a solid customer base, including recognized companies such as NTL Incorporated, Holiday Inn and Granada chain of motorway service stations, as well as local educational authorities and the National Health Trust. NTL Incorporated provides communications services to residential, business, and wholesale customers. The Company offers residential telephony, cable television, and Internet access services. NTL also provides national and international carrier telecommunications, satellite, and radio communications, as well as digital and analog television and radio broadcast transmission services.

The acquisition provides NetSol the platform to develop expert turnkey solutions for the education market and the National Grid for Learning (“NGFL”), for which the British Government has allocated in excess of $1.25 Billion to implement its NGFL strategy. At present, approximately 35 percent of the schools are using the NGFL program and the Government’s plan calls for the incorporation of the remaining 65 percent over the next two years.

“We are very excited. This is the single most important accomplishment to date in our corporate history ”, said Mr. Naeem Ghauri, Managing Director of NetSol U.K, Ltd. He added, “Network Solutions Group, Ltd. is well positioned to become a key provider for the education sector in the U.K, and with an infusion of working capital, we can truly optimize it’s profitability potential. The economies of scale and benefits of synergy resulting from the merging of two companies is a quantum leap forward for us”

Walt Bridgen, Managing Director of Network Solutions Group, Ltd. commented, “We clearly believe this union brings added value and support to our business model and provides access to capital resources to maximize the opportunities before us. As we look to the future of Information Technology and its impact on the global economy, we see tremendous potential to develop strong market orientation and create brand recognition for our unique technology services”.

Included in this material are ‘forward-looking statements’ within the meaning of Section 27 A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Although the company believes that the expectations reflected in such forward-looking statements are reasonable; it can give no assurance that such expectations reflected in such forward-looking statements would have proved to be correct.

For further information, please visit our Investor Relations Web Site: www.netsol-intl.com

Ms. Aiesha Ghauri, USA                   Mr. Naeem Ghauri, UK
310-395-4073                                 01908-275-174
Email: aiesha@netsol-intl.com           Email: naeemg@netsoluk.com

Don't forget to check out the Day Trading Section (click here) on our home page which now has live content, updated regularly. We have found a premier contributing editor for this section, and they are racking up returns in short term trading ideas.

Links to Free Downloads

Disclaimer

The OTCjournal.com Newsletter is an independent electronic publication committed to providing our readers with factual information on selected publicly traded companies. All companies are chosen on the basis of certain financial analysis and other pertinent criteria with a view toward maximizing the upside potential for investors while minimizing the downside risk, whenever possible. All statements and expressions are the sole opinions of the editors and are subject to change without notice. This profile is neither an offer nor solicitation to buy or sell any securities mentioned. This newsletter is owned by SSP Management, Inc, a wholly owned subsidiary of 1st Net Technologies, Inc ("1st Net"). While we believe all sources of information to be factual and reliable, in no way do we represent or guarantee the accuracy thereof, nor the statements made herein. The editor, members of the editor's family, and/or entities with which they are affiliated, may own stock in and have other financial dealings with the companies who appear in the publication. To that degree, this newsletter should not be regarded to be an independent publication. SSP Management, the parent company of the OTC Journal, has been paid a fee of $50,000 in cash, and 50,000 shares of restricted stock as compensation for representing Netsol International for a period of one year. The OTCjournal.com critiques may contain forward looking statements relating to the expected capabilities of the companies mentioned herein.

THE READER SHOULD VERIFY ALL CLAIMS AND DO THEIR OWN DUE DILIGENCE BEFORE INVESTING IN ANY SECURITIES MENTIONED. INVESTING IN SECURITIES IS SPECULATIVE AND CARRIES A HIGH DEGREE OF RISK. THE INFORMATION FOUND IN THIS PROFILE IS PROTECTED BY THE COPYRIGHT LAWS OF THE UNITED STATES AND MAY NOT BE COPIED, OR REPRODUCED IN ANY WAY WITHOUT THE EXPRESSED, WRITTEN CONSENT OF THE EDITORS OF OTCjournal.com.

We encourage our readers to invest carefully and read the investor information available at the web sites of the Securities and Exchange Commission ("SEC") at http://www.sec.gov and/or the National Association of Securities Dealers ("NASD") at http://www.nasd.com. We also strongly recommend that you read the SEC advisory to investors concerning Internet Stock Fraud, which can be found at http://www.sec.gov/consumer/cyberfr.htm. Readers can review all public filings by companies at the SEC's EDGAR page. The NASD has published information on how to invest carefully at its web site.