Arista Knowledge Systems to Catalyze Fragmented e-Learning Market.

ALAMEDA, Calif.--(BUSINESS WIRE)--Oct. 11, 1999--

Open Software Platform to Accelerate Potential $10 Billion Market

For Technology-Based Corporate Training and Knowledge Management

Arista Knowledge Systems formally enters the e-Learning market today, which is more than doubling in size annually and is estimated to reach $10 billion by 2002, according to IDC.

E-Learning refers the use of technology to improve human performance by integrating online training and knowledge management systems to enable workers, managers, and executives to learn and acquire new skills anytime, anywhere.

Based in Alameda, Arista has already started executing the first steps of its corporate strategy to deliver the first enterprise platform for e-Learning by entering into a partnership with SAIC (see separate release). Arista's platform brings together all forms of Internet- or network-based learning systems into a single learning management system able to track learner feedback and asset utilization, and link from front-end applications to back-end ERPs and legacy systems for a complete, end-to-end human performance solution.

"We believe that e-Learning is a new corporate imperative because it enables enterprises to leverage the convergence of the Internet and digital content for business change," said Arista's Founder and CEO Jeffrey Munks. "By developing the leading enterprise platform for e-Learning, Arista plans to help companies aggressively and intelligently fulfill that imperative."

E-Learning enables large enterprises to maximize return on investment in knowledge management by providing access to online training and education on-demand in any physical environment. Today, the market for training and learning tools is characterized by a large number of technologies and companies. Arista's software solutions will enable large organizations to more effectively leverage their IT investments using the industry's first open software platform that integrates tools, content, front-end applications and back-end systems.

"Of the three components of corporate e-Learning, asynchronous content, synchronous virtual classrooms, and training management -- training management is by far the most strategic," said Clark Aldrich, Senior Analyst of IT Business Management at Gartner Group.

"New content can be swapped in and out, new collaboration technologies can be added, but training management, because it is so integrally linked to back-end systems, provides the glue that makes all these components work together. As corporations better understand the value of e-Learning, the enterprise learning management systems market will grow at a dramatic rate over the next few years."

Arista's model of an open, scalable platform for e-Learning attracted the financial support of Internet-centric holding company, Safeguard Scientifics, Inc.

"Corporate learning and knowledge management is one of the biggest business challenges in today's networked economy," said Craig London, vice president and general manager of Safeguard Scientific's West Coast operations. "Arista is perfectly positioned to address this market and provide the vital management tools and infrastructure which large enterprises demand."

Experts in the e-Learning market share Safeguard's optimism for market success. "With global companies aggressively adopting e-Learning, the current growth rate of the market may surprise even the most optimistic analysts," said Kent Vickery, Chairman of SRI Consulting's Global Learning on Demand Research Project.

"Accelerated access and ease of use have guided Arista's development agenda. With their robust management reporting on the back end, they are positioned to take an important leadership role as a comprehensive solution provider in this exploding market."

Arista Knowledge Systems' flagship product Accredix(TM) allows organizations to administer, track and measure the learning process regardless of the hardware, software, medium or content used to develop and deliver course material. Currently in beta testing, Accredix 1.0 is scheduled for release in late 1999.

About Arista Knowledge Systems: Based in Alameda, Arista Knowledge Systems is the leading provider of open, scaleable e-Learning solutions for global enterprises. The company believes that e-Learning is a new corporate imperative that enables enterprises to exploit the convergence of the Internet and digital content for business change. Arista's flagship product, Accredix(TM), enables organizations to leverage learning to achieve competitive advantage by giving people access to knowledge and training anytime, anywhere. Arista works with systems integrators, VARs, Fortune 500 global enterprises, the US government and institutions of higher education to market and deploy its solutions. For more information about Arista Knowledge Systems, call 510/769-5700 or visit their home on the web at www.aristasys.com.

About Safeguard: Safeguard (www.safeguard.com) is an Internet-centric holding company which identifies, acquires, operates and manages business-to-business companies and has interests in several private equity funds. Safeguard currently focuses on companies engaged in e-commerce, network infrastructure activities, and e-Business services. Safeguard generally acquires ownership interests in companies that allow it to have a significant influence over their direction and management over the long-term. Safeguard assigns a dedicated team to each partner company and actively assists its partner companies in their management, operations and finances. Safeguard seeks to maximize shareholder value by actively providing operational assistance and expertise to help its partner companies grow and develop and by giving its shareholders the opportunity to participate in the initial public offerings of its partner companies while retaining a significant ownership interest after the initial public offering. Safeguard also participates in, and in some cases is involved in the management of, several private equity funds. Its network of partner companies and private equity funds creates an environment through which companies can leverage one another's information technology, operational experience, business contacts and industry expertise.

Note to Editors: Arista Knowledge Systems, Accredix, "knowledge without barriers" and "the e-Business platform for enterprise learning" are registered or pending trademarks of Arista Knowledge Systems. Other names may be trademarks of their respective owners.