ARS Networks Announces Crosslogix Testing On Canadian Pacific Rail Nears Completion.

Business/Technology Editors

NEW YORK--(BUSINESS WIRE)--Nov. 28, 2000

ARS Networks Inc. (OTC BB:ARSN) today announced that by the end of December 2000 field tests will be complete on Crosslogix(TM), a state-of-the-art advance warning system for railway crossings. Crosslogix is the company's patent-pending flagship product.

Canadian Pacific Railways' General Manager of Signals has confirmed that his team will review the Crosslogix system in January.

Testing on components of the system began in the laboratory two years ago and component field-testing began last year. The full system was installed on a main-line track in mid-September and has been undergoing operational system testing since then.

Sydney Harland, President and CEO of ARS Networks Inc. stated, "We knew the components worked individually, we knew they worked together in a lab. The challenge has been to ensure all the components -- from the bolts holding the sensors onto the track to the radio antennae -- could withstand a harsh railway environment.

"We must be sure that our system, which will monitor and operate the warning signals and gate arms at railway crossings, is reliable, tamper-proof, fail-safe and impervious to the effects of the environment such as rain, extreme heat, cold and the thundering vibrations of a train. We have been fine-tuning the system and we are confident that it will be ready for inspection by the railway in January."

The Crosslogix system consists of firmware, application software, track-mounted sensors, spread spectrum radios, antennae, computers that process the information from the sensors and a central computer that interprets the information and transmits it to remote data servers via wired or wireless installed communications networks. The Company developed the operating system and integrated hardware components sourced from top of the line manufacturers such as Honeywell, Siemens and Motorola.

Mr. Harland continued, "I'm delighted with our progress and particularly with the dedication of the company's engineers. I'm also very grateful for the support of Canadian Pacific Railways and the confidence that they have placed in us in allowing ARS to put a crossing system on their main line. Their field staff have worked with us at each stage to develop the crossing and senior management has committed to reviewing and validating our system."

The Company plans to move into the sales and marketing phase in Q1 of 2001. More than 300 shortline, Class I and II railways in North America are the target market. Currently, in excess of 260,000 crossings in North America are not protected with crossing signals. At $30,000 per Crosslogix advance warning system, this represents a $7.8 billion market opportunity. According to 1999 figures released by Operation Lifesaver, a train-vehicle collision occurs every two hours on average in the U.S.

The digital Crosslogix system has many competitive advantages over analog systems currently in use -- it is priced at one third to one half the cost, provides superior safety, is easier to install and maintain and is capable of sophisticated information monitoring and processing.

ARS Networks Inc. is a wireless communications technology company that designs, develops and commercializes safe, cost-effective, and reliable systems for the railway industry using patent-pending, remote sensing technology. Its systems feature an open architecture platform that offers railways and their freight customers unrivalled abilities to address public safety at level crossings, track cargo, communicate with dispatchers and shorten delivery times. The Company's platform provides a portal for a multitude of applications in real-time data collection, processing, monitoring and information analysis tailored to the railway industry.

Forward-looking statements in this release are made pursuant to the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that such forward-looking statements involve risks and uncertainties, including without limitation, continued acceptance of the Company's products, increased levels of competition for the Company, new products and technological changes, the Company's dependence on third-party suppliers, and other risks detailed from time to time in the Company's periodic reports filed with the Securities and Exchange Commission.