Arel Rapidly Capturing Market Share in U.S. Interactive Distance Learning Market According to Frost & Sullivan Research

    DAYTON, Ohio--Feb. 14, 2001--Arel Communications and Software Ltd.

    Learning Technology Provider Recognized with Research Firm's
    "Award for Market Penetration"

    Arel Communications and Software Ltd. , the world's leading provider of Interactive Distance Learning solutions, announced today that it has received the Frost & Sullivan Market Engineering Award for Market Penetration.
    Frost & Sullivan (www.frost.com), a global leader in international strategic market consulting and training, monitors the distance learning industry for market trends, market measurements and strategies. The award cites Arel for having excelled in customer value, customer service, product innovation and value pricing.
    "We are pleased with this award as it reflects the market's desire for technology that supports all forms of learning. We are leveraging our expertise in the coming year to enable the Arel customer to provide many kinds of interactive training from classroom to self-study using satellite, Web and fiber optics on a managed network," said Moshe Ben-Yishai President and CEO of Arel Communication and Software Inc. "We expect that our expansion will position our already profitable company on an annualized basis to dominate the distance learning field."
    In addition to noting Arel's dramatic increase in market share, up from 21 percent of total installed base of satellite-based application systems in 1999 to 30 percent in 2000, Frost & Sullivan cites Arel's expansion of its product offerings and its recent acquisition of W2COM, LLC as evidence that Arel will continue to capture market share and develop a presence in other segments of the e-learning market as well.
    A player in the satellite applications systems market since 1997, Arel recently introduced Spotlight(TM), a collaborative browser-based learning application that can be deployed on desktop PCs connected to any managed network.
    "This expansion into the managed networks-based collaboration tools market is a natural progression of our company," notes Mitchell E. Jones, CEO of Arel Learning Solutions. "We're applying our considerable expertise in interactive learning to bring true collaboration to learning applications. Our goal is for technology to enrich the learning experience."
    "We have been providing off-site training for our dealers for years," said Joseph Tate, Team Leader, Learning & Transformation, Volkswagen of America. "Establishing an interactive distance-learning network adds a new component to our training program and allows our dealers to remain at their dealership for many of our programs. We looked at several systems and selected Arel because it offered the features we wanted, including the ability to connect with our dealer extranet to enable the development of web-based training programs in the future."
    "For the past five years, we have been steadily adding to our distance learning capabilities, with video-conferencing being our primary means of educating from a distance," said Ken Woods, Director of Distance Learning, Texas State Technical College. "The new capabilities of the Abilene campus, provided by Arel/W2COM, will allow delivery of coursework to students that would otherwise be unavailable to them. These capabilities will allow the Abilene campus to provide concurrent enrollment and general technical education opportunities to local high school students."

About Arel Communications and Software, Ltd.

    Arel Communications and Software, Ltd., Yavne, Israel and its Atlanta-based U.S. subsidiary, Arel Communications and Software, Inc., (www.arel.net) market the IDEAL complete family of interactive distance learning and e-Training solutions. Arel IDEAL is the most advanced live and on-demand suite of e-Learning solutions available today, incorporating the latest Web technologies and many years of diligent research and development.
    Arel has extensive experience in installing and supporting global IDL networks for many of the world's largest multinational concerns in the telecommunications, financial services, automotive, retail, healthcare, manufacturing, and academic sectors. Equipped with the technology to offer unique business benefits, such as cost-effectiveness, certified results and just-in-time knowledge transfer, Arel solutions improve enterprise productivity, time-to-market, customer satisfaction and profitability.
    Arel IDEAL(TM), Arel Spotlight(TM), Arel Spotlight On-Demand(TM), and Arel Campus(TM) are trademarks of Arel Communications and Software. All other trade names are the properties of their respective owners.

About Frost & Sullivan

    Frost & Sullivan, headquartered in San Jose, Calif., is a global leader in international strategic market consulting and training. Frost & Sullivan's industry experts monitor the distnace learning industry for market trends, market measurements and strategies. This information is part of the U.S. Distance Learning Market Analysis. Executive summaries and interviews are available to the press. In addition to developing in-depth strategic market analysis, Frost & Sullivan also provides custom consulting solutions to a variety of national and international companies

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