ARYT: Financial Statements for the Fourth Quarter Ending On December 31, 2000.

Business Editors

OR YEHUDA, Israel--(BUSINESS WIRE)-- April 2, 2001

Aryt Industries Ltd. has published its financial statements for the fourth quarter ending on December 31, 2000.

- The aggregate sales turnover of companies in the group (including
unconsolidated companies) in 2000 totaled $8,4 million.

- The aggregate turnover increased both as a result of increased sales by
Reshef Technologies and because SigMed, SensoTech, OfficeCore and Voice Diary
were included for the first time.

- The net profit in the year of the statement totaled $24.6 million. The net
profit includes a one-time positive net sum of $31 million resulting from the
sales of Talgate shares. Because of this transaction the company recorded a
capital profit in 2000 of $12 million and a profit from negotiable securities
totaling about $28 million. These profits are included under other net income
and net financing income headings.

- The fourth quarter of the year was affected by the crisis that afflicted the
capital markets in both Israel and the world. The loss in this quarter results
mainly from the loss in the investment in negotiable securities.

- The profit for each share of one shekel nominal value during the statement
year came to $0.57.

Mr. Shmuel Bachar, the CEO of Aryt, stated: "2000 was a preparatory year in which the company devoted great efforts to the pinpointing, evaluation, and execution of various investments in order to set up the three divisions through which the company operates. Up till the date of publication of these reports the company has invested a total of about $3.3 million in the medical division, about $3.5 million in the defense division, and about $3.8 million in the technological division."

"2001 is a year of consolidation in which we have commenced the realization of the company's strategic programs and the enhancement of the value of the divisions and the related companies, in order to achieve our multi-year objectives: permanent positive cash flow, maximizing profits, improving assets, increasing company worth."

According to Ran Eckhaus, Aryt's CFO: "Aryt is exploiting the profits from the sales of Talgate shares to construct a long-term company infrastructure. Aryt currently has the capability and the independent internal resources permitting us to advance our multi-year program, while locating opportunities for various investments."

About Aryt Industries

Aryt Industries, a public company traded on the Tel Aviv and New York Stock Exchanges (ARYT.OB), is a managing holding company operating through specialized divisions.

Aryt is actively seeking new ventures, synergetic with its current holdings in order to expand its portfolio through partnerships, mergers and acquisitions. Aryt focuses on companies with proven technologies and business track record.

The company underwent reorganization during 2000 and currently focuses on three fields of activities:

- Medical division: This specializes in providing advanced solutions

for a wide range of medical needs.

- Aryt Systems - Defense division: A public company whose shares are

traded on the Tel Aviv Stock Exchange. The company coordinates the

Defense division and focuses on the development, production and

marketing of technology-intensive military equipment.

- Technological division: This acts as a business incubator focusing

on industrial technological applications in a wide range of

business fields.

This press release may contain forward-looking statements concerning our, and our subsidiaries' strategy, marketing and operations plans. These statements involve a number of risks and uncertainties including, but not limited to, risks related to the applicable evolving markets for each product, competition, the ability to manage growth and expansion, economic conditions generally, and of the technology sector in particular, and other risk factors. Actual results may differ materially from those projected due to a number of risks, including changes in customer demands for each product, new product offering from competitors, changes in or inability to execute business strategy or unanticipated development, manufacturing or supply problems. Aryt cannot guarantee future results, levels of activity, performance or achievements. In addition, the matters discussed in this press release also involve general risks and uncertainties summarized under the heading "Risk Factors" in Aryt's 20-F filed with the Securities and Exchange Commission on a yearly basis, as is amended from year to year. Aryt does not assume any obligation to update the forward-looking information contained in this press release.