Arel Launches New Version of Its High-Quality Audio and Video Conferencing Solution, Arel Anyware(TM), Making Online Meetings as Simple and Productive as Face-to-Face Encounters.

ATLANTA -- Key Enhancements Include Integration with Microsoft Office Live Communications Server 2005 and Microsoft Office Communicator, New Webinar Module, PSTN Integration and Enhanced Firewall and Encryption

Arel Communications and Software (NASDAQ: ARLC), technology leader in universal voice, video and Web communication for interactive conferencing, collaboration and training applications, today announced it is has enhanced its high-quality video and audio conferencing and collaboration solution, Arel Anyware(TM), making online meetings as simple and productive as face-to-face encounters. The new version of Arel Anyware is a flexible, hybrid solution that can now be accessed from a variety of Microsoft platforms. Specific enhancements include integration with Microsoft Office Live Communications Server 2005 and Microsoft Office Communicator, a new Webinar module, PSTN integration, and enhanced firewall and encryption.

Arel Anyware provides high-quality multi-point video and wideband audio capabilities in conjunction with real-time collaboration (RTC) platforms, such as Microsoft Office Live Meeting. Through easy installation, quick set up, and multi-point audio and video capabilities, Arel Anyware dramatically improves the quality and efficiency of online meetings and makes face-to-face global communications possible. By adapting to low-bandwidth Internet connections, Arel Anyware can simultaneously retain up to 16 video windows in a single session at any bandwidth threshold. In addition, Arel Anyware works in secure corporate network environments or over the Internet.

Arel Anyware can now be seamlessly integrated with Live Communications Server and Communicator, enabling Arel Anyware participants to launch a video and audio-enabled session from a Communicator conversation window and to start communicating and collaborating in real time.

"The new version of Arel Anyware provides flexibility and hybridity as users can now access the solution from both Live Meeting and Communicator," said Philippe Szwarc, CEO of Arel Communications and Software. "We believe this is a key differentiator in the marketplace and a powerful business offering for our users."

Szwarc continued, "Contextual collaboration, or the ability to activate rich-media collaboration out of an existing application or Web service, has truly become the next definitive step for real-time conferencing and communication and is an invaluable enabler of growth for the enterprise. Arel Anyware helps fuel that growth by dissolving traditional communication barriers and empowering participants to converse and collaborate in a highly fluid and natural manner to significantly enhance productivity."

"The new version of Arel Anyware is a powerful complement to Microsoft's unified communications solutions and offers numerous business benefits to our valued customers," said Marc Sanders, senior product manager, Unified Communications Group, Microsoft. "Arel Anyware's high-quality multi-point video and wideband audio capabilities, in conjunction with Live Meeting, Live Communications Server and Communicator, increases the richness and efficiency of on-line meetings and expands our customers' options for anytime, anywhere communication."

In addition to integration with Live Communications Server and Communicator, the enhanced version of Arel Anyware will feature a new Webinar module that enables a 'Town Hall' meeting experience. In the Webinar module, presenters can connect and communicate with participants via video and audio, which is especially useful during question-and-answer periods. Users, however, are in listen-only mode until a presenter hands over control.

Arel Anyware can also now be integrated with any standard telephony bridge, enabling participants to choose if they want to join an Anyware session via VoIP or telephony audio (both of which can be recorded using Live Meeting's recording functionality). Other key features in the new, enhanced version include enhanced firewall traversal and encryption, support for multiple languages and improved portal features and account options.

Arel Anyware is available for purchase as on an on-premise or a hosted solution through Arel's sales representatives. More information on Arel Anyware is available at www.ArelAnyware.com.

About Arel Communications and Software:

Arel Communications and Software is a leader in conferencing and collaboration solutions. Arel is focused on enhancing communications, facilitating workgroup collaboration and driving productivity in the enterprise. By providing a comprehensive application suite, Arel Spotlight(TM), for leveraging enterprise networks for rich-media communications, Arel replicates in-person meetings in the online environment. Arel's newest solution, Arel Anyware, is an audio-visual plug-in that establishes true "face-to-face" meetings over the internet. Requiring only a webcam for full-featured video operability, users can add video conferencing to any web or IM/presence application. Combining voice, video and data conferencing in one easy-to-use Web-based solution, Arel fosters interactive communications that significantly improve work environments today. Arel's solutions impact key business processes such as corporate and marketing communications, distance learning, product development, customer relationship management, and supply chain management. Allowing geographically dispersed users to work together in groups, attend webinars and panel discussions, participate in training courses, and have one-on-one meetings with customers or colleagues, from virtually anywhere, Arel Spotlight is a powerful tool for critical business communications. For more information, visit www.arelcom.com.

This press release contains forward-looking statements 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, general business conditions in the industry, changes in demand for products, the timing and amount or cancellation of orders and other risks detailed from time to time in Arel Communications and Software's filings with the Security Exchange Commission.

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