ARI Reports First Quarter Results.

Dealer Marketing Services Business Continues to Grow Rapidly

MILWAUKEE -- ARI (OTCBB:ARIS), a leading provider of technology-enabled business solutions that help equipment dealers, distributors and manufacturers build sales and profits, today reported financial results for the first quarter ended October 31, 2006.

First Quarter Fiscal 2007 Highlights

* Revenues were $3.50 million for the first quarter of fiscal 2007, compared to revenues of $3.49 million for the first quarter of fiscal 2006.

* Operating income was $229,000 for the first quarter of fiscal 2007, compared to operating income of $524,000 for the same period in the prior year.

* Net income was $225,000 or $0.03 per diluted share for the first quarter of fiscal 2007, compared to net income of $498,000 or $0.07 per diluted share for the first quarter of fiscal 2006.

Operations Review

"Revenues increased in two key areas in the first quarter. Recurring revenues from our core electronic catalog business were up and our Dealer Marketing Services (DMS) business continues to grow rapidly. DMS revenues drove the slight overall increase in first-quarter revenues and have now eclipsed revenues from our historical communications business," said Brian E. Dearing, chairman and chief executive officer of ARI.

Dearing said the Company's European operations were still not performing up to expectations. "We are still in a transition phase for this business as we continue to implement the dealer-direct business model that has been so successful for us in the U.S. Roy W. Olivier, our new vice president of global sales and marketing, has made it a priority to improve our European operations by expanding our relationships with current and potential OEM customers," said Dearing.

Dearing said the lower operating income in the first quarter of fiscal 2007 reflected the lower margins of the DMS business and increased investments in developing and marketing these new products. "Even though our Dealer Marketing Services area is our fastest-growing product area, it is still a relatively small, young business. While our investments in this business affected operating income in the first quarter, we believe it has excellent potential to increase our profits over the long term," said Dearing.

Dearing said other factors that contributed to the decrease in operating income for the quarter were increased costs to support newly deployed products and accounting for employee stock options under FAS 123.

"Our first quarter cash flow is traditionally lower than in the second and third quarters due to the timing of large contract renewals," added Dearing. "Nevertheless, our cash flow remains strong and we continue to pay down debt. We reduced our debt by an additional $350,000 in the first quarter, with our final payments scheduled for December 2007."

Summary

"Our first quarter results were mixed: Our new DMS business is continuing to grow rapidly, but is not yet large enough to create significant overall revenue growth," said Dearing. "We are holding our own in the core U.S. catalog market, but Europe is a continuing challenge. Our cash flow, cash balance and debt repayments remain strong, but our income was reduced by continuing investments in our newer businesses."

Outlook

"We made good progress in executing on our growth strategies in the first quarter. We are continuing to enhance our base business. We are beginning to see results from our investments in the Dealer Marketing Services area, which bodes well for our future. There are still some challenges in Europe, but we remain confident our dealer-direct strategy is the correct approach. With the addition of Roy W. Olivier, we believe we are on the right track to generate profitable organic growth worldwide. We also continue to pursue synergistic acquisitions for accretive growth," said Dearing.

About ARI

ARI is a leading provider of electronic parts catalogs and related technology and services to increase sales and profits for dealers, distributors and manufacturers in the manufactured equipment markets. ARI currently provides approximately 99 parts catalogs (many of which contain multiple lines of equipment) for approximately 77 equipment manufacturers in the U.S. and Europe. Approximately 76,000 catalog subscriptions are provided through ARI to more than 25,000 dealers and distributors in approximately 89 countries in a dozen segments of the worldwide equipment market including outdoor power, power sports, ag equipment, recreation vehicle, floor maintenance, auto and truck parts aftermarket, marine and construction. The Company builds and supports a full suite of multi-media electronic catalog publishing and viewing software for the Web or CD and provides expert catalog publishing and consulting services. ARI also provides dealer marketing services, including technology-enabled direct mail, email and a award-winning dealer website service that makes it quick and easy for an equipment dealer to have a professional and attractive website. In addition, ARI e-Catalog systems support a variety of electronic pathways for parts orders, warranty claims and other transactions between manufacturers and their networks of sales and service points. ARI currently operates three offices in the United States and one in Europe and has sales and service agents in England and France providing marketing and support of its products and services.

First Quarter Earnings Conference Call

ARI's First Quarter Conference Call is scheduled for Thursday, November 30, 2006 at 3:30 p.m. Central Time/4:30 p.m. Eastern Time. If you would like to participate, please pre-register at https://www.myrcplus.com/rsvp-index.asp?BWebID=&CID=8300747. At that time you will be provided with the numbers to use to join the conference call. A replay of ARI's conference call, as well as notes and financial information presented in the call, will also be available on ARI's website, www.arinet.com, after 6:00 p.m. Central Time on Friday, December 1, 2006. Click on the "Investor Relations" tab to access the information.

Statements in this news release are "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" or words of similar meaning. Forward-looking statements also include statements relating to the Company's future performance, such as future prospects, revenues, profits and cash flows. 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 risks and uncertainties include those factors described under "Forward Looking Statements Disclosure" in Exhibit 99.1 of the Company's annual report on Form 10-KSB for fiscal year ended July 31, 2006 filed with the Securities and Exchange Commission. Readers are cautioned not to place undue reliance on these forward-looking statements. The forward-looking statements are made only as of the date hereof, and the Company undertakes no obligation to publicly release the result of any revisions to these forward-looking statements. For more information, please refer to the Company's filings with the Securities and Exchange Commission.

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