ARI and Briggs & Stratton Sign Letter of Intent; Combined Company Will be the Leading Electronic Commerce Provider in Outdoor Power.

MILWAUKEE--(BUSINESS WIRE)--July 27, 1998--ARI Network Services, Inc. (NASDAQ/NMS:ARIS), a leading provider of Internet-enabled electronic commerce services for distribution channels, announced it has signed a letter of intent to acquire the assets of POWERCOM-2000, Inc., a division of Briggs & Stratton Corporation (NYSE:BGG). POWERCOM-2000, Inc., located in Colorado Springs, Colorado, is a provider of electronic commerce software and services to companies in the Outdoor Power, Power Tool and Power Sports Industries. Under the terms of the transaction, ARI will purchase the worldwide assets of POWERCOM-2000, Inc. for stock. In addition, Briggs & Stratton will remain a customer of the combined entity. The transaction, which is subject to completion of due diligence and execution of a definitive agreement, is expected to close in September 1998.

With annual sales of approximately $4 million, POWERCOM-2000, Inc. serves customers with a range of software products including EDI, electronic partscatalogs and a full-featured business management system for retail dealers. POWERCOM-2000, Inc. serves approximately 7,000 customers in 30 countries. The company's customers include Briggs & Stratton, Black & Decker, Polaris, MTD and Stihl. POWERCOM-2000, Inc. employs about 50 people.

"This is an outstanding opportunity for ARI to expand its electronic communications and publishing business in several strategic segments of the Equipment Industry worldwide. The combination is a major strategic move toward the Company's goal of bringing a comprehensive EC solution to selected industries. The combined company will have a stronger presence in its target markets, as well as an expanded range of products," said Brian E. Dearing, chairman and chief executive officer of ARI.

"A key element of the deal is that Briggs & Stratton will continue to be a significant customer for catalog and communications software," added Dearing. "Furthermore, operating synergies between the two companies will yield many benefits for both our customers and our business."

"The biggest beneficiaries of the combined company are dealers in the Outdoor Power Industry, who now will be able to obtain communications and cataloging software from a single source, thereby saving money and improving efficiency. As the leading provider of electronic software solutions for the outdoor power market, we expect to increase sales among dealers who have not yet selected EDI software for their business and to expand the overall use of electronic commerce in this industry," said Dearing.

"While electronic commerce and cataloging are important to the success of our business, we have learned that developing the technologies that drive those functions is not consistent with our strategic business direction. That's why we're pleased to have POWERCOM-2000, Inc. join forces with another recognized market leader and to have the combined company be an important service provider for us as we move forward," said Fred Stratton, chairman and chief executive officer of Briggs & Stratton.

"POWERCOM-2000, Inc.'s software products are state-of-the-art Windows(R) 95, multi-lingual tools that should fit in well with our PLUS1(R) and TradeRoute(TM) software," said Dearing. ARI's electronic cataloging software gives users access to parts numbers and illustrations, prices, bulletins and other key product information. The Company's TradeRoute software enables dealers to check parts availability, place parts orders, submit product registrations and warranty claims, inquire about warranty status, verify order status and receive invoices.

"We are committed to providing quality products and services to customers of both companies," Dearing said.

Cleary Gull Reiland & McDevitt Inc., the investment banking firm retained by ARI for its business development program, is assisting with the transaction. "The transaction is a major step for ARI as the company continues to move forward with its strategy to increase revenues and improve financial performance," said John R. Peterson, managing director of investment banking for Cleary Gull. "It will give ARI a stronger customer base, leadership positions in several industries and an expanded product line."

POWERCOM-2000, Inc. is ARI's third business development transaction in the past two years. The company will continue to seek additional opportunities that offer complementary products in its markets or related markets along with operational and financial synergies.

ARI Network Services, Inc. is a provider of standards-based, Internet-enabled electronic commerce services for commercial communities and their distribution channels or business partners. ARI currently serves the agribusiness, equipment, freight transportation and newspaper publishing industries with a complete range of software, services and support that streamlines distribution channels by automating the flow of commercial information between trading partners. The Company's dealer and distributor communications systems provide an electronic pathway for sales reports, product ordering, warranty registrations and other transactions between manufacturers and their networks of sales and service points. ARI also builds and manages electronic commerce databases, including electronic parts catalogs and industry-common directories of products, companies and locations.

Statements in this news 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" 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" in the Company's most recent annual report on Form 10-K or quarterly report on Form 10-Q 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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