Arel Launches New Enterprise Communications Platform for Fully-Integrated Desktop Video and Web Conferencing over Converged IP Networks.

Business Editors/High-Tech Writers

ATLANTA--(BUSINESS WIRE)--Sept. 22, 2003

Arel ICP offers secure, video, voice and data conferencing, with

UDP performance over TCP-IP based networks

Arel Communications and Software Limited (NASDAQ: ARLC) today introduced its Integrated Conferencing Platform (ICP), a secure, software-based platform that provides enterprise customers advanced conferencing and collaboration capabilities. The Arel ICP brings together all forms of advanced communications, including Web and data conferencing, video conferencing, chat, application sharing, content distribution delivery, Web services and streaming video, directly to a PC, laptop or PDA.

The Arel ICP interoperates with existing H.323-based video conferencing, e-learning satellite-based solutions and PSTN networks, protecting customers' original investments in infrastructure while offering a migration path towards convergence and new forms of collaboration. Easily scalable over multiple network types and topologies, the Arel ICP seamlessly traverses enterprise firewalls and proxy servers, allowing users to interact and collaborate with others outside their enterprise network. Users can be ready to participate in minutes, conferencing with multiple, fully integrated video windows using simple, intuitive controls.

Companies such as Countrywide Home Loans, Inc., a national leader in residential finance, are already seeing the value of the Arel ICP. Countrywide is forecasting significant cost savings related to communicating with the company's thousands of home loan consultants in more than 500 offices nationwide. (See today's related release.)

"We chose to work with Arel because they understand the difficulties enterprises face when implementing converging video and Web-based services across multiple offices and networks," said Joe Anderson, managing director of Countrywide's Consumer Markets Division. "The Arel ICP is offering us a migration path from our current e-learning system to truly converged collaboration services, such as Web conferencing. Arel's ICP allows us to implement new forms of collaboration directly from our desktops over IP, saving us time and money by eliminating network additions, as well as unnecessary training and travel."

Andrew Davis, senior analyst and managing partner of Wainhouse Research, said, "In today's market, video-only interaction from dedicated rooms over dedicated networks, without data collaboration, no longer suffices. With the ICP, Arel offers a compelling value proposition for enterprises by offering secure video, data and Web conferencing all integrated inside one PC-based application that can be used both in the office and remotely over existing network infrastructure."

Key technologies, features and benefits of the Arel ICP:

-- Arel Conference(TM), a personal conferencing portal that

generates conferences, meetings and webinars within minutes

directly from the desktop. Browser-based administration and

management allows user authorization management, real-time

resource monitoring, creation and scheduling of conferences,

email invitations and Crystal reports using .NET technology.

The Arel Conference portal is fully integrated with

Microsoft's Outlook.

-- Arel Campus(TM) serves as the e-learning portal and provides

users with vital access to both personal and administrative

data. Arel Campus lets participants launch and attend live and

recorded on-demand sessions, preview course content, take

off-line on-demand quizzes, and communicate with presenters

and expert assistants. Arel Campus provides data on course

details and scheduling, registration, presenters, individual

progress, grades and accreditation.

-- Arel's patent-pending UltraStack(TM) technology substantially

reduces voice and video network latency augmented with Arel's

dynamic delay jitter buffer technology.

-- PSTN interoperability provides converged conferencing using

either an IP-based client or regular phones.

-- ICP servers are easily scalable and can be dispersed

geographically to increase capacity and support growth,

allowing for regionalized sessions and substantial network

traffic reduction.

-- ICP supports conference attendees with different bandwidth

allocation and automatically adjusts the voice and video rates

to allow rich media sessions on low, medium or high bit rates.

"The Arel ICP is the only solution which provides a comprehensive answer to all interpersonal conferencing and collaboration needs of the organization," said Philippe Szwarc, CEO of Arel Communications and Software. "We are committed to offering a high-performance, cost-effective video, voice and data conferencing solution by optimizing the use of existing network resources in large distributed enterprises using breakthrough technologies."

The Arel ICP is available immediately. For pricing, please contact [e-mail].

About Arel Communications and Software

Arel Communications and Software Ltd (www.arel.net) offers effective fully integrated video, voice and data interactive conferencing solutions by optimizing the use of existing network resources available to distributed enterprises. Our integrated networking and software platform is winning us loyalty from major Fortune 500 customers, using our system for various needs such as video conferencing, collaboration, e-learning, and distance learning applications.

Certain statements made herein that are not historical are forward-looking within the meaning of the Private Securities Litigation Reform Act of 1995. The words "estimate", "project", "intend", "expect", "believe", "hopeful" and similar expressions are intended to identify forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties. Many factors could cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements that may be expressed or implied by such forward-looking statements, including, among others, changes in general economic and business conditions, inability to maintain market acceptance to the Company's products, inability to timely develop and introduce new technologies, products and applications, rapid changes in the market for the Company's products, loss of market share and pressure on prices resulting from competition, introduction of competing products by other companies, inability to manage growth and expansion, loss of key partners, inability to attract and retain qualified personnel, inability to protect the Company's proprietary technology and risks associated with the Company's international operations and its location in Israel. For additional information regarding these and other risks and uncertainties associated with the Company's business, reference is made to the Company's reports filed from time to time with the Securities and Exchange Commission.