Construction Equipment Manufacturers, Distributors Select ARI; Dealers, Customers Will Get Better, Faster Service.

MILWAUKEE--(BUSINESS WIRE)--Oct. 13, 1998--ARI Network Services, Inc. (NASDAQ/NMS:ARIS), a leading provider of Internet-enabled electronic commerce services for distribution channels, announced that a joint committee representing construction equipment manufacturers and the independent distributors who sell, lease and service their products, has selected ARI to develop an industry-wide electronic information support and communications system for Web-based electronic communication. The committee's selection of ARI is based on the Company's enhanced capabilities as a result of its recent acquisition of POWERCOM-2000, Inc.

Members of the joint committee of the Associated Equipment Distributors (AED) and the Construction Industry Manufacturers Association (CIMA) made the selection because of "an established track record of providing world-wide electronic commerce solutions for both equipment manufacturers and their multi-line distributors," said Toby Mack, AED executive vice president. "The combined capabilities of ARI and POWERCOM now under the ARI umbrella gives us the products, the experience and the technical resources to deliver an optimum solution for both manufacturers and distributors for many years to come."

The project will give the Construction Equipment Industry a cost-effective, standards-based product support and communications system utilizing Internet delivery which is fast, easy to use, and always accessible, according to Dennis Slater, president of CIMA. "The system will revolutionize product support of construction machinery by improving the accuracy and timeliness with which manufacturers and distributors share and process information. This will enhance their relationships through increased customer service," Slater said.

Mack said that the joint committee had spent the past three years researching and defining the optimum system and technology partner to deliver this solution. Speaking on behalf of the Joint AED/CIMA Partnership Selection Committee Mack said, "We are now pleased to announce our selection and exclusive endorsement of ARI as our best of breed technology partner for this project."

"This five-year contract is a good example of the synergy provided by the acquisition of POWERCOM-2000," said Brian E. Dearing, chairman and chief executive officer of ARI. "This acquisition is giving ARI entry into new markets, deeper and broader technological expertise and expanded opportunities for our combined line of products and services."

On September 15, 1998, ARI completed the acquisition of POWERCOM-2000, a Colorado Springs, Colorado producer of electronic software and services for the Outdoor Power, Power Tool and Power Sports Industries.

The new construction equipment system will be composed of three components, available via a combination of Internet delivery and conventional electronic data interchange (EDI).

The three integrated system components are:

1. A Web-based manufacturer product support system. Accessible to

authorized users via a secure Internet connection and a standard

Web browser, this system will offer 24-hour, seven-day-a-week

availability of on-line product support data including parts

illustrations and breakdowns, linked technical specifications,

service manuals and bulletins, schematic drawings, parts pricing

and supersession information, troubleshooting guides and

printable marketing literature.

2. EDI communications. Applications include electronic ordering,

warranty claims, product registration, pricing, invoicing and

advance shipping notices.

3. An Internet Information Support System (ISS). The ISS will

provide secure, Web-based on-demand inquiries for authorized

distributors to view OEM product registration, repair history,

order status, ship status and tracking, stock status and

location, and claims status.

Together, these three inter-linked components will provide construction equipment manufacturers and their dealers with a cost-effective electronic pathway for product information, transactions and ad hoc inquiries.

Manufacturers and distributors can begin using the EDI and ISS components immediately, as well as a CD-ROM-based product support system. The CD-ROM system can then be upgraded to the new Web-based system when it becomes available, which is expected to be by the Spring of 1999. The new system will be specifically designed to meet the construction equipment industry's requirements, as specified by AED and CIMA.

The system will be demonstrated at AED's annual meeting and CONDEX, January 14-16, 1999, in San Diego, and at CONEXPO-CON/AGG, March 23-27, 1999, in Las Vegas. Full release is expected to be in May of 1999.

ARI Network Services, Inc. is a provider of standards-based, Internet-enabled electronic commerce services for commercial communities and their distribution channels or business partners. ARI currently serves the agribusiness, manufactured equipment, freight transportation and newspaper publishing industries with a complete range of software, services and support that streamlines distribution channels by automating the flow of commercial information between trading partners. The Company's dealer and distributor communications systems provide an electronic pathway for sales reports, product ordering, warranty registrations and other transactions between manufacturers and their networks of sales and service points. ARI also builds and manages electronic commerce databases, including electronic parts catalogs and industry-common directories of products, companies and locations.

Statements in this news release include "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act. The forward-looking statements can generally be identified by words such as "believes," "anticipates," "expects" or words of similar meaning. Forward-looking statements also include statements relating to the Company's future performance, such as future prospects, revenues, profits and cash flows. The forward-looking statements are subject to risks and uncertainties, which may cause actual results to be materially different from any future performance suggested in the forward-looking statements. Such risks and uncertainties include those factors described under "Forward Looking Statements" in the Company's most recent annual report on Form 10-K or quarterly report on Form 10-Q filed with the Securities and Exchange Commission. Readers are cautioned not to place undue reliance on these forward-looking statements. The forward-looking statements are made only as of the date hereof, and the Company undertakes no obligation to publicly release the result of any revisions to these forward-looking statements. For more information, please refer to the Company's filings with the Securities and Exchange Commission.