ARI Reports Fourth Quarter and Fiscal 2007 Results.

MILWAUKEE -- ARI (OTCBB:ARIS), a leading provider of technology-enabled business solutions for equipment dealers, distributors and manufacturers, today reported results for the fiscal year ended July 31, 2007.

Full Year Fiscal 2007 Highlights

* Revenues were $15.4 million for fiscal 2007, a 10% increase from revenues of $14.0 million for fiscal 2006.

* Operating income was $165,000 for fiscal 2007, compared to operating income of $2.1 million in the prior fiscal year.

* Net income was $101,000 or $0.02 per diluted share for fiscal 2007, compared to net income of $3.2 million or $0.49 per diluted share in fiscal 2006.

Fourth Quarter Fiscal 2007 Highlights

* Revenues increased 20% to $4.1 million for the fourth quarter of fiscal 2007, from $3.4 million for the same period in the prior year.

* Operating loss was $153,000 for the fourth quarter of fiscal 2007, compared to operating income of $540,000 for the fourth quarter of fiscal 2006.

* Net loss was $167,000 or $0.02 per diluted share for the fourth quarter of fiscal 2007, compared to net income of $723,000 or $0.11 per diluted share for the comparable prior period.

Operations Review

Commenting on the results, Brian E. Dearing, chairman and chief executive officer, highlighted the Company's marketing services business, which more than quadrupled in sales for the fourth quarter and for the year. The increase in sales represented both organic growth and the acquisition of OC-Net in January 2007.

"Cash flow from operations was more than $1.1 million for the year," Dearing said. "We used that cash flow and our beginning cash balance to fund the OC-Net acquisition, capital expenditures and software product development, and to repay over $1.5 million of debt, de-levering the business by about 23 cents per share."

"The drop in GAAP net income included a number of items that we do not anticipate recurring in the coming fiscal year, including severance payments, unanticipated expenses associated with fixing one of our products in the field, and the write-off of costs in connection with an acquisition that failed to close," Dearing continued. "Collectively, these expenses represented over $250,000 in the fourth quarter. In addition, throughout the year we invested about an additional $1 million in sales and marketing, which we expect to result in additional revenue next year."

For additional commentary and detail, please reference ARI's annual report on Form 10-KSB for the year ended July 31, 2007, which has been filed with the SEC as of today.

About ARI

ARI is a leading provider of electronic parts catalogs and marketing services to dealers, distributors and manufacturers in the manufactured equipment markets. ARI currently serves more than 23,000 dealers, 70 manufacturers, and 150 distributors worldwide in about 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. For more information on ARI, visit our website www.arinet.com.

Fourth Quarter Earnings Conference Call

ARI's Fourth Quarter and Fiscal Year 2007 Conference Call is scheduled for Monday, October 29, 2007 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=4221818. 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 Tuesday, October 30, 2007. 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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