Center for Technology and Innovation Management Deploys Arel Spotlight Conferencing and Collaboration Solution.

ATLANTA -- Institute at the University Bundeswehr Munich Leverages Arel Spotlight(TM) to Promote Integrated Rich Media Conferencing and Collaboration in Enterprise Environments

Arel Communications and Software (NASDAQ:ARLC), technology leader in universal voice, video and data Web communication for interactive conferencing, collaboration and training applications, today announced that the Center for Technology and Innovation Management (CeTIM), an independent, non-profit research institute at the University Bundeswehr Munich, will deploy the Arel Spotlight(TM) universal conferencing software solution in its research environment. CeTIM will leverage Arel Spotlight to promote integrated rich media conferencing, communication and collaboration in enterprise environments.

Specifically, Arel Spotlight will be deployed in CeTIM's Virtual Enterprise Lab (VE-Lab) 'campus' - a reproduction of a vibrant, working, distributed enterprise environment that facilitates on-site and virtual team collaboration as a central component of daily work processes. This state-of-the-art facility is used for testing, demonstrating and leveraging multimedia technologies for real-time and instant communication and collaboration.

CeTIM GmbH is an independent, non-profit research institute at the University BW Munich that focuses on technology and innovation management. The institute specializes in co-operative research with industry and public administration and with research partners in science and technology. CeTIM has been involved in various European projects in the fields of virtual organization and entrepreneurial innovation. CeTIM differentiates itself from other research groups in that it uses the VE-Lab for its own daily internal communication and collaboration among its work team, which is dispersed over ten locations in Europe including Germany, Switzerland, Holland, France and United Kingdom.

"CeTIM's multi-faceted use of Arel Spotlight has provided the institute with a deep understanding of our product," said Philippe Szwarc, CEO of Arel. "This strategic alliance is significant for Arel and has been instrumental in providing important feedback on enterprises' specific conferencing and collaboration needs and requirements."

"Arel's Spotlight conferencing solution is central to the VE-Lab as we see real-time collaboration as one of the key aspects of new work flow processes and work routines," said Dr. Hermann Loeh, director of the VE-Lab. "Arel Spotlight is extremely powerful for application sharing, especially for CAD and graphic-intensive applications. We are making immense progress in setting the standard for effective and efficient workflow environments within an organization and Arel's technology is at the forefront, integrating both desktop and group collaboration."

Dr. Loeh continued, "Today, with businesses becoming more geographically dispersed, this technology must become part of everyday communications and processes. To date, Web conferencing and collaboration in Europe has been driven by service providers, but CeTIM and Arel are helping to educate the market on the advantages of premise-based deployment."

CeTIM invites companies to its VE-Lab to use and experience on-site and virtual collaboration solutions and to understand how this technology can be implemented within other organizations. CeTIM is this year's host of the International Conference on Concurrent Enterprising, the leading European event on the management of product development and virtual collaboration, which will gather more than 250 experts from industry and research. Arel is supporting the conference as a key technology partner. The conference will be held in Munich, Germany, on June 20-22, 2005. For more information, please visit: http://www.ice-conference.org

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 scalable, 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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