ADD BW0009 (AREL-COMMUNICATIONS).

--(BUSINESS WIRE)--

ADD TO BW0009 (AREL-COMMUNICATIONS) the following information:

-0-

                Arel Communications and Software Ltd.
                       (an Israeli Corporation)
                    Condensed Statement of Income

                         Three Months ended          Year Ended
                              31-Dec                   31-Dec
                          1995       1994          1995       1994
                             Unaudited                 Audited
                           U.S. dollars              U.S. dollars

REVENUES FROM SALES
 AND SERVICES           2,250,647   1,118,707    6,276,432   4,103,040

COST OF SALES AND
 SERVICES                 617,494     321,300    1,814,905   1,153,899

GROSS PROFIT            1,633,153     797,407    4,461,527   2,949,141

RESEARCH AND DEVELOPMENT
 COSTS, NET               246,362     110,617      809,051     305,218

SELLING EXPENSES          449,276     261,136    1,526,988     898,652

GENERAL AND ADMINISTRATIVE
 EXPENSES                 288,623     177,990      867,686     593,516

OPERATING INCOME          648,892     247,664    1,257,802   1,151,755

FINANCIAL INCOME, NET      50,816      17,453      325,383      61,365

INCOME BEFORE TAXES ON
 INCOME                   699,708     265,117    1,583,185   1,213,120

TAXES ON INCOME            74,449     -59,000      178,874      79,176

NET INCOME               $625,259    $324,117   $1,404,311  $1,133,944

EARNINGS PER SHARE          $0.11       $0.07        $0.25       $0.26

WEIGHTED AVERAGE NUMBER
 OF SHARES OUTSTANDING  5,582,680   4,332,413    5,582,680   4,332,413

CONTACT: Arel Communications and Software Limited

Izhak Gross, 972-8-9420880