ARI Expands International Marketing and Support To Germany; European Partner Further Expands ARI's Global Sales and Service Network.

Business Editors

MILWAUKEE, Wis.--(BUSINESS WIRE)--Aug. 3, 2000

ARI Network Services, Inc. (NASDAQ/NMS:ARIS), a leading provider of Internet e-Commerce solutions for equipment manufacturers, announced today another step in its strategy to expand its international marketing and product support with the naming of Computer und Technik Vertriebs-Gmbh (C&T) of Euskirchen, Germany, as a value added service agent for ARI's TradeRoute(R) dealer communications and PartSmart(TM) electronic catalog software for German speaking customers in Europe.

C&T is a provider of hardware, software and services in various industries in the German-speaking markets. C&T will provide first and second level support for ARI's line of dealer communications and electronic catalog software for dealers and distributors in Germany.

"We are excited about the opportunity to represent ARI Network Services in Germany and look forward to supporting ARI's line of software products," said Christian Joist, C&T's managing director. "ARI products and technical expertise fit very well with the markets we serve, so we see this as a very strategic partnership."

ARI views the relationship as a strategic venture as well as the company expands its international presence. "Our international business is the fastest growing portion of our company," said Brian E. Dearing, chairman and chief executive officer of ARI. "We expect international sales to increase to about 10% of our total this year -- that's nearly double last year's international sales. The international marketplace represents two-thirds of the total world market and service agents like C&T are key to international sales and customer service. In addition, a large portion of our customer base has a global presence, so we need partners like C&T to serve them as well."

Dearing noted that ARI and C&T have worked together for almost ten years. As a result, C&T has a clear understanding of ARI's products and customers and is, therefore, ideally suited to serve ARI's expanding customer base in Europe. C&T is a welcome addition to our growing worldwide network of sales and product support partners," Dearing said. "This strategic relationship will help us both to develop new business in Germany and to serve the needs of our existing and future customer base there."

Joist indicated that ARI's technical leadership and its commitment to the manufactured equipment market will give C&T a competitive advantage in the German market. "ARI has a very fine reputation in the European marketplace and we look forward to a rewarding partnership," Joist added.

In addition to C&T, ARI has sales and services agents for Traderoute and Partsmart in England, France, Italy and Australia.

ARI Network Services, Inc. is a leading provider of business-to-business (B2B) Internet e-Commerce solutions for sales, service and life-cycle product support in the manufactured equipment market. ARI currently serves 12 segments of the worldwide manufactured equipment market including outdoor power, recreation vehicle, floor maintenance, marine and construction. The company builds and supports a full suite of multi-media electronic catalog software including publishing software to electronic parts catalogs that are distributed via the Web, CD or DVD. ARI communications systems provide a global electronic pathway for sales reports, product orders, warranty registrations and other transactions between manufacturers and their networks of sales and service points. ARI currently operates three offices in the United States and has sales and service agents in Australia, England, France, Germany and Italy providing marketing and support of its dealer communications and electronic catalog products.

Statements in this press release include "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act. The forward-looking statements can generally be identified by words such as "believes," "anticipates," "expects," "intends" or words of similar meaning. Forward-looking statements also include statements relating to the Company's future performance, such as future prospects, revenues, profits, cash flows, EBITDA, costs and product development schedules and plans. The forward-looking statements are subject to risks and uncertainties, which may cause actual results to be materially different from any future performance suggested in the forward-looking statements. Such risk and uncertainties include those factors described under "Risk Factors" in the Company's Registration Statement on Form S-3 filed on May 12, 2000.