Cancom Learning Solutions Signs VAR Agreement With Arel.

MISSISSAUGA, Ontario--(BUSINESS WIRE)--Aug. 10, 1998--Cancom (Canadian Satellite Communications Inc.) today announced it has signed a Value Added Reseller (VAR) agreement with Arel Communications and Software, Inc., an Atlanta-based subsidiary of Arel Communications and Software, Ltd. (NASDAQ:ARLCF).

Under this Agreement, Cancom Learning Solutions (formerly Cancom Business Television) will market, deploy and support Arel's Interactive Distance Education and Learning (IDEAL) system throughout Canada.

Arel's IDEAL system facilitates cost-effective video, audio and data interaction between instructors and students in any number of locations. The open architecture PC based system's simplicity and modularity brings economical interactive distance learning within the reach of every school system, governmental organization, and corporations.

For years, Cancom Learning Solutions has been the leader in the design and implementation of Satellite Interactive Distance Learning (SIDL(TM)) systems in Canada. It has built over 2,000 satellite-delivered sites for organizations such as General Motors, Department of Human Resources (HRDC), Canada Post, Business Development Bank of Canada and TD Bank. Cancom Learning Solutions provides these clients with the benefits of distributed learning systems that provide high levels of voice and data interaction between an instructor and limitless students at remote sites.

"Becoming the VAR for the Arel IDEAL product in Canada is a part of Cancom's strategy to provide a full family of solutions and products to our clients", said Duncan McEwan, President and CEO of Cancom.

Cancom will immediately be providing support to TV Ontario, a client of Arel. In April, TVO announced a major expansion of its province-wide distance learning network, using interactive systems designed by Arel. TV Ontario's satellite-based distance learning network, which currently reaches 27 primary and secondary schools will extend its reach to 55 schools and colleges by August, 150 by fall 1998 and 400 total sites by the completion of an 18-month pilot program in the spring of 1999.

"We are very excited about the opportunities that arise from us being able to offer the Arel interactive systems to our clients"' said Larry Steinman, Vice President of Cancom Learning Solutions. "Since launching our private broadcast satellite services business in 1981, we have always taken pride in our ability to provide the best distribution and interaction solutions to our clients, and the Agreement with Arel is another instance in which we have heard our clients and are adapting."

IDEAL is a one-to-many communications system that enables teachers, college professors, corporate executives and trainers to interact simultaneously with remote students and employees at multiple locations around the world, using the off-the-shelf touch-tone telephone keypad technology. It creates a comprehensive learning environment, with a live broadcast at the core, featuring a series of integrated communications tools, such as e-mail, voice-mail, fax, Internet connectivity, and document retrieval.

"We are fortunate that our state-of-the-art technology will be represented in Canada by a company with the stature of Cancom", said Ben Yishai, President and CEO of Arel's fully owned Atlanta, GA based subsidiary. "Cancom BTV, (now know as Cancom Learning Solutions) has the reputation of being the leader in the SIDL field in Canada, and we know that they will successfully represent the superior qualities of our product in the marketplace".

Cancom is Canada's leading expert in evaluating, selecting, integrating and implementing satellite-based solutions for business. Cancom operates in four main lines of business. Cancom Broadcast Solutions delivers a wide range of digital TV signals to thousands of communities and provides video distribution to a number of broadcasters across the continent. Cancom Tracking Solutions, provides tracking and messaging for the Canadian trucking industry. Cancom Learning Solutions, builds and maintains private satellite interactive distance learning networks (SIDL) and communications for business and governments. Cancom Data Solutions, designs, implements, and manages multi-protocol, Internet/Intranet-based networks that link hundreds of branch and head offices. It trades on the Toronto and Montreal Stock Exchanges (SAT).

Arel Communications and Software Ltd., headquartered in Yavne, Israel, designs, develops, integrates, and markets software for a family of products in the interactive distance learning market called IDEAL. Arel markets the IDEAL system in Canada and the US through its North American headquarters in Atlanta. In addition, through its subsidiary ArelNet Ltd., Arel designs, develops, markets, produces, integrates, and supports software for two worldwide families of message-switching wide-area-network systems canned ARCOMT and i-FAXT. ArelNet also develops other products to service providers and carriers based in North America, as well as major telecommunications companies worldwide.

   CONTACT: Cancom:
             Larry Steinman
             Cancom Learning Solutions
             50 Burnhamthorpe Road West
             Suite 1000
             Mississauga, Ontario
             L5B 3C2
             Phone: (905)  272-6664
             Fax: [phone]
             e-mail: [e-mail]
                          OR
             Arel:
             Ben Yishai
             Arel Communications and Software Inc.
             7000  Central Parkway
             Suite 1700
             Atlanta, Georgia
             30328
             Phone:  [phone] ext. 280
             Fax: [phone]
             e-mail: [e-mail]