Community Internet plc Offers Free Fax and Voice to E-Mail Internet Services Based on ArelNet Technology.

YAVNE, Israel--(BUSINESS WIRE)--July 22, 1999--

Leading U.K. Internet Service Provider To Enhance

Faxwise Product Through Use of ArelNet's I-Tone Platform

ArelNet Ltd., a subsidiary of Arel Communication & Software, Ltd. (NASDAQ: ARLCF), has announced that Community Internet plc, a U.K.-based Internet service provider, will use ArelNet's Internet Protocol (IP) telephony solution to offer free fax-to-e-mail services through Community Internet's web site interface www.faxwise.com.

The new services utilize ArelNet's i-Tone(TM) IP gateway solution. i-Tone is an expanded, carrier-grade turnkey solution for IP telephony and fax that supports various services on the same port. Designed for a spectrum of communications service providers, the i-Tone system supports phone-to-phone, fax-to-fax, PC-to-phone, PC-to-fax, e-mail-to-fax, fax-to-e-mail, fax broadcasting and enhanced messaging for mobile subscribers.

Community Internet is offering the innovative fax-to-e-mail service to millions of businesses, corporations and private customers throughout Europe, providing them the benefit of receiving fax documents directly to their e-mail address. Service corporations will not need additional phone lines or have to deal with mounds of paper, store multiple toner cartridges and frequently use the fax machine. Business travelers will be able to receive all documents directly to their e-mail address - regardless of their location. Students will be able to receive faxes without the expense of a fax machine.

Mr. Matthew Hare, managing director of Community Internet, stated: "We are most pleased to be able add new services to our Faxwise product. We must constantly remain competitive in the changing communications market and by doing so, we continue our longstanding business relationship with ArelNet. We chose the ArelNet i-Tone platform based on its plethora of reliable services and we believe that this is a good opportunity for us to expand our customer base."

Mr. Bernard Marks, ArelNet's Marketing & Sales Director for Europe, adds that Community Internet will soon offer other new i-Tone complementary services, such as voice-to-e-mail. "These services represent a new business opportunity for us and we are very pleased that Community Internet chose to implement this innovative marketing approach."

For more information about this new service and many other IP Telephony solutions, please visit the ArelNet Ltd. web site at www.arelnet.com or the Community Internet web site at www.faxwise.com.

Community Internet plc. provides integrated solutions that deliver clear benefits to businesses. Services include connectivity and hosting services, facilities management, consultancy, web and database programming, and web site design. The business is based in Oxford, UK, and has offices in London and across Europe. Faxwise is a division of Community Internet plc specializing in services such as Internet access, Hosting services, ISDN/Leased line provision, Web design, e-commerce, Intranet, Consultancy, Internet marketing and On-line databases.

ArelNet is a leading provider of IP telephony solutions including i-Tone. New services are being added continuously to ensure that i-Tone customers maintain a leading edge in the IP market. The i-Tone system, which is used by the world's largest carriers, telecommunications companies, Internet service providers (ISPs) and value-added telecommunications service providers, is the only product that handles both real-time communications as well as enhanced fax and voice value-added services using a single platform.

Arel Communications & Software, Ltd., Yavne, Israel, and its ArelNet Ltd. subsidiary design, develop, produce and market value-added communication and IP telephony products for telephone carriers, Internet service providers (ISPs) and other network operators worldwide. Arel and its Atlanta-based U.S. subsidiary, Arel Communications & Software, Inc., market the IDEAL (Interactive Distance and Education Learning) family of interactive distance learning products.

All trade names are the property of their respective owners.

This press release is available on the KCSA Worldwide web site at www.kcsa.com