Lucent Technologies Division Selects Arel System for to Deploy its Interactive Distance Learning Network

Business Wire, Sept 14, 1998

YAVNE, Israel--(BUSINESS WIRE)--Sept. 14, 1998--Arel Communications & Software, Ltd. (NASDAQ: ARLCF) announced today that the Global Learning Solutions unit of Lucent Technologies Inc. (NYSE:LU), one of the largest US Telecommunication technologies companies, has chosen Arel to provide its Lucent's state-of-the-art IDEAL (Interactive Distance Education And Learning) systems for the deployment of Lucent Vision - its internal Distance Training Learning Network. The initial purchase order for the first phase of the network, with value of 1.4 Million USD will link 270 training centers throughout the U.S. and is scheduled for delivery in October 1998. Lucent's training network is planned to be significantly expanded up to 4,000 remote locations over a period of 36 to 48 months.

The network deployment will be implemented in cooperation with EchoStar Communications Corporation Corp. (NASDAQ:DISH, DISHP) that which has been selected by Lucent as the Network integrator and Business TV supplier.

Commenting on the order, Mr. Moshe Ben Yishai, CEO of Atlanta based Arel Communication and Software Inc. said, "Lucent's decision to implement Arel's IDEAL system is a further step in strengthening our position in the IDL market of corporate America."

"We're proud that a highly technology-aware organization such as Lucent has selected our IDEAL system based on in-depth technology trials" said today Mr. Zvi Klier, President - IDL Division of Arel.

IDEAL is a one-to-many communications system that enables corporate executives and trainers to interact simultaneously with remote employees and students at multiple locations around the world, using off-the-shelf hardware and response technologies. Employees can see and hear their instructor live via satellite, and can use the interactive systems to answer multiple choice questions, ask questions, and communicate with the corporate facilitator, fellow employees and students - all in real-time.

IDEAL makes use of non-proprietary equipment, integrating standard off-the-shelf PCs, telephone sets as interaction devices, and television sets to provide real-time interaction over a satellite-based or terrestrial-based broadcast network. It creates a comprehensive learning and interactive environment, with a live broadcast at the core.

About Lucent Technologies Inc.

Lucent Technologies is a US$26.4 billion company with 127 years of experience and 130,000 employees worldwide. With corporate headquarters in Murray Hill, New Jersey, United States. Lucent designs, builds and delivers a wide range of public and private networks, communications systems and software, data networking systems, business telephone systems and microelectronics components. Bell Labs is Lucent's research and development arm. For more information on Lucent Technologies, visit the company's web site at http://www.lucent.com

About EchoStar Communications Corp.

EchoStar Communications Corp. includes three interrelated business units:

-- DISH Network(tm), EchoStar's state-of-the-art DBS system

that offers customers over 300 services of digital video and CD-

quality audio programming, fully MPEG-2/DVB compliant hardware,

installation, financing and leasing.

-- EchoStar Technologies Corporation (ETC, formerly HTS(tm)

Houston Tracker Systems, Inc.), designs, manufactures and

distributes DBS set-top boxes, antennae and other digital

equipment for the DISH Network and various international

customers that include ExpressVu Canada and Telefonica's Via

Digital system in Spain. ETC also provides uplink center design,

construction oversight and project integration services for

customers internationally.

-- Satellite Services provides the delivery of video, audio and

data services to business television customers and other

satellite users. These services include satellite uplink,

satellite transponder space usage, and other services.

The DISH Network currently serves over 1.5 million customers. DISH Network is a trademark of EchoStar Communications Corporation. HTS is a trademark of Houston Tracker Systems, Inc. DISH Network is located on the Internet at: http://www.dishnetwork.com

About Arel Communication and Software Ltd.

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 U.S. through its fully own subsidiary - Arel Communications and Software Inc., based in Atlanta. In addition, through its other subsidiary ArelNet Ltd., Arel designs, develops, markets, produces, integrates and supports software for two worldwide families of message-switching wide-area-network systems called ARCOMT, i-FAXT and i-ToneT. ArelNet also develops other products to service providers and carriers based in North America, as well as major telecommunications companies worldwide.

Certain statements made herein that are not historical are forward-looking within the meaning of the Private Securities Litigation Reform Act of 1995. The words "estimate", "project", "intend", "expect", "believe", "hopeful" and similar expressions are intended to identify forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties. Many factors could cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements that may be expressed or implied by such forward- looking statements, including, among others, changes in general economic and business conditions, inability to maintain market acceptance to the Company's products, inability to timely develop and introduce new technologies, products and applications, rapid changes in the market for the Company's products, loss of market share and pressure on prices resulting from competition, introduction of competing products by other companies, inability to manage growth and expansion, loss of key partners, inability to attract and retain qualified personnel, inability to protect the Company's proprietary technology and risks associated with the Company's international operations and its location in Israel. For additional information regarding these and other risks and uncertainties associated with the Company's business, reference is made to the Company's reports filed from time to time with the Securities and Exchange Commission.