Aryt Industries Ltd. Press Release.

Business Editors

OR YEHUDA, Israel--(BUSINESS WIRE)--May 31, 2001

Aryt Industries Ltd. (OTCBB:ARYTF) has published its financial statements for the fourth quarter ending on March 31 ,2001.

-- The aggregate sales turnover of companies in the group (including
unconsolidated companies) in the first quarter of 2001 totaled $ 2,239
thousands, compared to $ 1,492 thousands in the corresponding period last year.


-- The loss in the period of the statement totaled NIS 8,747,000.

-- The loss for each share of one shekel nominal value during the period of the
statement came to $ 0.05.

According to Ran Eckhaus, Aryt's CFO: "The first quarter of the year was characterized by the absorption of new activities and their assimilation in the group. From the business aspect, the first quarter was also apparently the worst one of the year, as a result of the postponement of orders to later quarters. During the year a recovery is expected, as well as improvement of the business results".

Mr. Shmuel Bachar, the CEO of Aryt, stated: "In 2001 we commenced the realization of the company's strategic programs and the enhancement of the value of the divisions and the related companies, in order to achieve our multi-year objectives: permanent positive cash flow, maximizing profits, improving assets, increasing company worth".

About Aryt Industries

Aryt Industries, a public company traded on the Tel Aviv and New York Stock Exchanges (ARYT.OB), is a managing holding company operating through specialized divisions.

Aryt is actively seeking new ventures, synergetic with its current holdings in order to expand its portfolio through partnerships, mergers and acquisitions. Aryt focuses on companies with proven technologies and business track record.

The company underwent reorganization during 2000 and currently focuses on three fields of activities:

-- Medical division: This specializes in providing advanced solutions

for a wide range of medical needs. -- Aryt Systems -- Defense division: A public company whose shares

are traded on the Tel Aviv Stock Exchange. The company coordinates

the Defense division and focuses on the development, production

and marketing of technology-intensive military equipment. -- Technological division: This focuses on industrial technological

applications in a wide range of business fields.

This press release may contain forward-looking statements concerning our, and our subsidiaries' strategy, marketing and operations plans. These statements involve a number of risks and uncertainties including, but not limited to, risks related to the applicable evolving markets for each product, competition, the ability to manage growth and expansion, economic conditions generally, and of the technology sector in particular, and other risk factors. Actual results may differ materially from those projected due to a number of risks, including changes in customer demands for each product, new product offering from competitors, changes in or inability to execute business strategy or unanticipated development, manufacturing or supply problems. Aryt cannot guarantee future results, levels of activity, performance or achievements. In addition, the matters discussed in this press release also involve general risks and uncertainties summarized under the heading "Risk Factors" in Aryt's 20-F filed with the Securities and Exchange Commission on a yearly basis, as is amended from year to year. Aryt does not assume any obligation to update the forward-looking information contained in this press release.