Arel Communications and Software Announces the Sale of Its Holdings in Arelnet Ltd. to Airspan Networks for Approximately $1.3 Million.ATLANTA -- Arel Communications and Software (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :ARLC ARLC Automatic Revolving Letter of Credit ), technology leader in universal voice, video and data web communication for interactive conferencing, collaboration and training applications, today announced that Arelnet Ltd. (TASE TASE Tel Aviv Stock Exchange TASE The All Seeing Eye TASE Tactical Air Support Element TASE Thrust Assessment Support Environment TASE Telecontrol Application Service Elements (IEC communications protocol) :ARNT), in which Arel holds approximately a 17.8% share on an issued and outstanding basis, has signed a definitive agreement to sell all of its issued and outstanding shares to Airspan Networks, Inc. (NASDAQ:AIRN) for $8.7 million. The consideration to be paid to all of Arelnet's shareholders will be comprised of $4.7 million of Airspan shares and $4 million in cash, of which $500,000 will be placed into a one-year escrow escrow Instrument, such as a deed, money, or property, that constitutes evidence of obligations between two or more parties and is held by a third party. It is delivered by the third party only upon fulfillment of some condition. . Following the closing of the transaction, Arel expects to receive its ownership share of the transaction's consideration, composed of approximately $700,0000 in Airspan shares and $600,000 in cash, of which approximately $75,000 will be placed into the one-year escrow. Arel expects, after the closing, to record a net capital gain of approximately $1 million. The agreement is subject to approval by the Tel-Aviv District Court, Arelnet's shareholders and other regulatory bodies. Philippe Szwarc, chief executive officer of Arel, stated, "This transaction winds out our investment in Arelnet and is expected to generate over $1 million in cash for Arel that we will deploy toward our significant strategic growth opportunities in the emerging rich-media collaboration market." About Arel Communications and Software: Arel Communications and Software, a technology leader in interactive web communications, develops, markets and sells a universal conferencing software solution for enterprise-wide deployment of integrated voice, video and data web conferencing/collaboration and training applications. Designed around Arel's Integrated Conferencing Platform(TM) (ICP (1) (Internet Cache Protocol) A protocol used by one proxy server to query another for a cached Web page without having to go to the Internet to retrieve it. See CARP and proxy server. ) core software, the Arel Spotlight(TM) application suite facilitates collaboration for key business processes such as corporate and marketing communications Marketing communications (or marcom) are messages and related media used to communicate with a market. Those who practice advertising, branding, direct marketing, graphic design, marketing, packaging, promotion, publicity, sponsorship, public relations, sales, sales , distance learning, product development, customer relationship management, and supply chain management by allowing dispersed dis·perse v. dis·persed, dis·pers·ing, dis·pers·es v.tr. 1. a. To drive off or scatter in different directions: The police dispersed the crowd. b. enterprise users to collaborate in real time with synchronized syn·chro·nize v. syn·chro·nized, syn·chro·niz·ing, syn·chro·niz·es v.intr. 1. To occur at the same time; be simultaneous. 2. To operate in unison. v.tr. 1. voice, video and data. Arel's scaleable, secure, and network-friendly universal conferencing solution is becoming the choice solution for large enterprises moving from 'off-network' pay per usage services to 'on-network' solutions for greater control, cost-savings and integration with internal systems. www.arelcom.com This press release contains forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. that are subject to risks and uncertainties. Factors that could cause results to differ materially from these forward-looking statements include, but are not limited to, the satisfaction of the conditions to closing the agreement between Arelnet and Airspan. Arel is under no obligation (and expressly disclaims any such obligation) to update or alter any forward-looking statements whether as a result of new information, future events or otherwise. All trademarks recognized. |
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