Arel Unveils Revolutionary New Universal Conferencing Capabilities for Interactive Voice, Video and Data Web Communications.

Business Editors/High-Tech Writers

ATLANTA--(BUSINESS WIRE)--Feb. 4, 2004

Arel Communications and Software (NASDAQ: ARLC)

-- Key Enhancements To Arel's Enterprise Software Solution

Include Video-Enabled Webinars, Reservation-less Rich-media

Conferences, Microsoft Outlook and Presence Management

Integration, PUSH content, and UDP Performance Over TCP 

networks

Arel Communications and Software (NASDAQ: ARLC), technology leader in universal voice, video and data web communication for interactive conferencing/collaboration and training applications, today revealed enhancements to the company's innovative, Integrated Conferencing Platform(TM) (ICP) core software technology along with an expanded Arel Spotlight(TM) integrated application suite. Designed from the ground up to deliver synchronized, real-time voice, video and data communications over converged IP networks, Arel's ICP universal conferencing core software technology is the central component of Arel's family of Spotlight applications: Spotlight Meeting, Spotlight Campus, and the new Spotlight Webinar.

Spotlight Meeting is designed for interactive work groups as well as one-to-one meetings, Spotlight Campus is a feature-rich solution covering all aspects of distance training, and Spotlight Webinar is a new addition to the Spotlight family of applications designed for video-enabled live Web-based seminars for knowledge delivery to large audiences. Each application provides integrated live audio, video, media rich content and data collaboration along with its own administrative environment.

Enhanced Spotlight application suite delivers a compelling 'personal conferencing' experience

Arel's integrated Spotlight application suite delivers a compelling 'personal conferencing' experience by taking full advantage of the company's newest ICP universal conferencing technology innovations. In addition to expanding the Arel Spotlight application suite to include Spotlight Webinar for video-enabled Webinars, key ICP-based application enhancements include:

-- Instant Meeting(TM) capabilities:

-- Reservation-less rich-media meetings via personal Arel URL 

-- "Quick link" invitations using email or Instant Messaging 

(IM)

-- Ability to send invitations during live sessions

-- Guest logins for non-registered users

-- Open events capability for events not requiring

invitations or registration

-- Microsoft(R) Outlook(R) integration enabling users to schedule

and manage Arel events directly from Outlook. Participants can

also view and join Arel meetings through their Outlook

calendar.

-- Presence and Instant Messaging integration. Users can

identify, invite and initiate Arel meetings through their IM

client such as MSN(R) Messenger.

-- LDAP support. Administrators can import a directory from

external sources such as Microsoft Active Directory(R) or any

other LDAP-enabled source to the Arel database.

-- Expanded functionality including Agenda and Content Builder

for rich-media content (PowerPoint(R), Word, Excel, video,

graphics), on-the-fly questions with text, and Snapshot

feature for annotating application sharing sessions.

-- Session recording and archiving.

-- Improved management and administration.

Superior ICP software technology supports advanced functionality not available in other solutions

The new version of Arel's ICP .NET client-server software architecture includes several key technology breakthroughs that, in combination, provide superior universal conferencing capabilities not available in the current generation of competitive single-media solutions that are now being retrofitted with rich-media features:

-- Full support for PUSH content for optimized content

distribution.

-- 'Network aware' distributed server capabilities support

dynamic bandwidth throttling, load balancing, scalability and

redundancy.

-- Voice enhancements include PSTN connectivity as well as echo

cancellation to eliminate the need for headsets.

-- Arel's UltraStack(TM) enables real-time audio and video

communication with clients outside of the corporate network

using TCP connections while delivering UDP performance.

"Rich-media conferencing is heating up in 2004, especially at the business desktop. Enterprise technology buyers have budgets earmarked for collaboration and communication. The combination of products, services and buyer interest defines an exciting window of opportunity for companies like Arel to grow their market share," says Christine Perey, president of Perey Research. "Arel's application-to-network software architecture and network-friendly technologies remove many user-to-user connectivity obstacles. The result is an enhanced user experience that will fuel greater adoption in the enterprise."

"Our new ICP enhancements and expanded Spotlight application suite puts our universal conferencing solution in a class of its own," said Philippe Szwarc, CEO of Arel Communications and Software. "From the beginning, we designed our solution to address the needs of enterprise customers wanting to move from pay-per-use services to 'on-network' solutions for greater control, cost-savings and integration with internal systems. This release reinforces our commitment to developing breakthrough technologies that will enable our customers to extract even more value from their investments in converged IP networks by empowering enterprise users with trend-setting universal conferencing capabilities for transacting business more effectively across global networks. "

Using Arel Spotlight applications, enterprise users can 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 using desktop systems, laptops or even handheld wireless devices via Internet, Intranet or PSTN connections.

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) core software, the Arel Spotlight(TM) application suite facilitates collaboration for key business processes such as corporate and marketing communications, distance learning, product development, customer relationship management, and supply chain management by allowing dispersed enterprise users to collaborate in real time with synchronized 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 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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