Investment Company of Bank Hapoalim to Invest in Arel Communications and Software Limited.TEL AVIV, Israel--(BUSINESS WIRE)--May 14, 1998--Arel Communications and Software Limited (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on NMS--ARLCF, ARLWF) announced today that it has entered into an agreement with a wholly-owned subsidiary of Investment Company of Bank Hapoalim Ltd. ("ICBH ICBH International Carrier Backhaul ") for the purchase by ICBH of 607,839 shares of Arel at a purchase price of $3.50 per share, or an aggregate purchase price of $2,127,436. In connection with this transaction, Arel will issue to ICBH 2 1/2 year warrants to purchase an aggregate of 750,000 shares with an exercise price of $4.50 per warrant. Commencing one year following the closing of this transaction, Arel will have the right to cause ICBH to exercise 375,000 of such warrants, if the price of Arel shares exceeds $5.50 for 20 consecutive trading days during the term of the warrant. Consummation of this transaction is subject to receipt of the approval of the shareholders of Arel. Mr. Izhak Gross, Chairman of Arel said that "we are very pleased with the investment announced today. ICBH has recognized the value of our technology and strategic relationships and we plan to use the proceeds of this investment to further develop and market our family of products, particularly in the interactive distance learning market." ICBH, a publicly traded company publicly traded company A company whose shares of common stock are held by the public and are available for purchase by investors. The shares of publicly traded firms are bought and sold on the organized exchanges or in the over-the-counter market. on the Tel Aviv Stock Exchange Tel Aviv Stock Exchange Israel's only stock exchange. , is a leading investment company in Israel with a diversified portfolio of investments in industry, communications, trade, services, insurance, real estate and financial services. Among others, ICBH has holdings in Teledata Communications Limited (NASDAQ: TLDCF) and BVR BVR Beyond Visual Range BVR Business Valuation Review (journal) BVR Biliverdin Reductase BVR Bureau of Vocational Rehabilitation BVR Bulletin de Versement (French) Technologies Limited (NASDAQ: BVRTF). 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. In addition, through its subsidiary ArelNet, Ltd., Arel designs, develops, markets, produces, integrates and supports, on a worldwide basis, software for two families of message-switching wide-area network systems called ARCOM ARCOM Army Reserve Command (replaced by RSC and RSG) ARCOM Army Commendation Medal ARCOM United States Army Reserve Command and i-FAX and i-TONE. Arcom is rated among the leading products in its field worldwide. i-Fax and i-TONE are leading solutions for IP Telephone, designed for medium to large networks. CONTACT: Arel Communications and Software Ltd. Izhak Gross Chairman of the Board Tel TEL Telephone TEL Telegram TEL Telugu (langauge) TEL Terrorist Exclusion List TEL Technology-Enhanced Learning TEL Transporter-Erector-Launcher TEL Tetra-Ethyl Lead TEL Team Deutsche Telekom : 972 8 942-0880 |
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