NTWK NEWS ~ MindSources, Inc Acquisition a Done Deal!
NetSol International, Inc. Acquires Virginia-Based MindSources, Inc. Acquisition Opens Doors in Largest IT Market in North America
SANTA MONICA, Calif., Aug. 19 /PRNewswire/ -- NetSol International, Inc. (OTC Bulletin Board: NTWK) ("NetSol") announced today that it has acquired 100 percent of the capital stock of Virginia-based MindSources, Inc., an Information Technology company, that will merge with NetSol USA, Inc., a wholly owned subsidiary of NetSol International, Inc. NetSol exchanged 250,000 shares of its restricted common stock for 100 percent of MindSources, Inc. capital stock.
MindSources, Inc., a two-year old privately held company with corporate offices in Chantilly, Virginia, reported just over $300,000 in revenue in 1998 and is currently operating at a run rate of approximately $1.2 million. The company expects next year's revenues to top $3 million. MindSources, Inc. provides technology and business consulting services to firms in the software, hardware and communications industries. Over the past two years, MindSources has built an impressive client list including such blue chip companies as AT&T, MCI WorldCom, Sprint, Prism, CH2M Hill, Sterling Software, MODIS, Compro Systems and ATS Technologies.
With the successful completion of the merger, NetSol's subsidiary NetSol USA, Inc., opened an office in Vienna, Virginia to service major North American customers. This gives NetSol an immediate presence in one of the biggest Information Technology corridors in North America.
MindSources, Inc. envisioned tapping into the medical industry by developing key applications and software for medical billing systems. They have been engaged in the Research and Development of these products, which is believed to be a significant application that offers a niche marketing opportunity. MindSources has been developing other unique applications for the financial and equities markets that will expand the company's offerings. The merger provides NetSol numerous important Information Technology resources.
"We are extremely excited about the prospects for growth and the expanded customer base provided by this merger with MindSources, Inc. The company brings a wealth of new products that have already gone through the R&D process and now can be developed in our development facility in Pakistan," said Mr. Najeeb Ghauri, CEO of NetSol USA, Inc. "The synergy with NetSol USA, Inc., and MindSources, Inc., is perfect as this will allow us to develop these products under our offshore business model, with cost efficiencies, economies of scale and productivity gains."
Mr. Salim Ghauri, the CEO of NetSol International, Inc. said, "The latest development of mergers and acquisitions has been an integral part of growing and building NetSol at a rapid pace. This is consistent with our growth strategy overall but it also tremendously improves our earnings potential and overall productivity."
Included in this material are 'forward-looking statements' within the meaning of Section 27A 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 the company's web site www.netsol-intl.com or contact: Mark Celano of Market Pathways, 949-955-1860, Email: markc@marketpathways.com.
SOURCE NetSol International, Inc.
CO: NetSol International, Inc.; MindSources, Inc.; NetSol USA, Inc.
ST: California, Virginia
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