Education & Distance Learning Enthusiasts- Arel to provide K-Communication its Interactive Distance Learning System for a Pan-European Knowledge Distribution Network, in a deal worth over $1.1 Million

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Arel to provide K-Communication its Interactive Distance Learning System for a Pan-European Knowledge Distribution Network, in a deal worth over $1.1 Million

Business Wire - May 20, 2002

Business Editors and Technology/Education Writers

YAVNE, Israel--(BUSINESS WIRE)--May 20, 2002

K-Communication, one of Italy's leading education service providers, will offer satellite-based, media-rich interactive training

services to virtual classrooms throughout Europe

Arel Communications and Software Ltd., (Nasdaq:ARLC), the world's leading provider of Interactive Distance Learning (IDL) and e-Learning systems today announced that Cosmi(R) K-Communication, a prominent Italian education service provider, has selected Arel's IDEAL(TM) system for the delivery of live interactive distance learning to its Enterprise and Public Administration customers, throughout Europe.

K-Communication will deploy the full-featured Arel VirtualClass(TM) system, offering one-to-many live training over a satellite network, in a deal valued at over US$1.1 Million.

Prominent instructors from different industry sectors will broadcast live interactive and media-rich training sessions from the studio center in Padua to thousands of participants in geographically dispersed virtual classrooms. The fully integrated video, data, and voice-enabled system includes Arel's Learning Management System (LMS) with its robust database, Arel Author(TM) for courseware development, and Arel Evaluator(TM) and Reporter(TM) tools. K-Communication will also offer to its customers via Internet/Intranet an e-learning portal based on the Arel Campus(TM).

Mr. Alberto Raffaelli, President of Chronos S.R.L. and the Cosmi Group remarked, "Over the past year, Chronos has built a unique relationship with Arel's dedicated team, based on a successful experience with its world class technology and professional support services. Arel's excellent feature set and functionality will increase the effectiveness of learning, facilitate the distribution of instruction and enhance competencies among our valued customers, allowing organizations to accelerate results-oriented communication and maximize human capital while reducing time-to-market and travel expenses."

Mr. Walter Gatti, General Manager of K-Communication, commented, "Using the Arel IDEAL suite of e-Learning solutions, we will offer organizations customized content and tailored services to distribute knowledge to their employees, customers and partners. Arel's unique ability to support hybrid classrooms of both PC- and TV-based training enables us to expand our offerings and provide live and on-demand compelling courseware to thousands of desktop users anytime, anywhere. Our objective is to establish ourselves as the premier e-Learning service provider in Italy, the rest of Europe and, later on, in North-Africa."

"We are proud that a prominent education service provider such as K-Communication has chosen Arel to offer its professional distance learning services to Italian and European organizations in various industry sectors such as public administration, construction, pharmaceutical, and the employment market at all levels of management," said Mr. Aharon Fuchs, Arel's Vice President of Sales Asia and Europe. "Using Arel's complete suite of e-training solutions, K-Communication will greatly improve its service offerings, increase profits and reposition itself as the leading distance learning service provider in Europe and the Mediterranean basin.

Mr. Riri Elfassy, Arel's Vice President of Marketing, commented, "Arel is delighted to make further inroads into the Italian and European markets. K-Communication joins the Royal Bank of Scotland, NatWest Bank and other global organizations such as Lucent Technologies, AT&T Wireless, Volkswagen USA, BMW USA, Toronto Dominion Bank, Royal Bank of Canada, Anheuser Busch, Suhil Systems of Korea, Bob Jones University, and Tel Aviv University who have all embraced Arel's systems to meet their strategic e-Learning needs."

About K-Communication

K-Communication is an innovative training service provider, operating within the Cosmi(R) Group, a leading Italian network of companies -- 180 persons in 12 different Italian cities -- that includes Galileo Job Education, Egmont S.O.A spa, Cosmi Innovation, Fidelio, Chronos, and other strategic partners such as COAV Alpi Eagles and Med Net. Headquartered in Padua Italy, K-Communication incorporates an Interactive TV division that broadcasts interactive multimedia training sessions to hundreds of locations in Italy, Belgium, Germany, Spain, UK and other North African countries.

K-Communication provides consultancy and professional support to a large number of public and private corporations, with an important business strategy for the Italian public administration system. The company's mission is to supply knowledge, utilities, services and tools to improve the business development of their customers' organizations, expand the education and culture of young workers, and facilitate innovation technology for the European Community. Since Cosmi's inception in the early eighties, when the north-eastern Italian region began its period of rapid development, the group has continued to expand its operations offering, among others, services such as industrial and management advice, innovation technology and quality system certification.

About Arel Communications and Software

Arel Communications and Software, Ltd., Yavne, Israel and its U.S. subsidiaries, Arel Communications and Software, Inc., and Arel Learning Solutions Inc., (www.arel.net) market the IDEAL family of products, including its innovative Internet Protocol-based Spotlight application. IDEAL is a fully integrated, enterprise-wide, scalable solution that delivers live, interactive training and corporate communications. Arel Spotlight is a browser-based application that offers both on-line (synchronous) and off-line (asynchronous) content on a single platform. Powered by Arel's IDEAL engine, Spotlight integrates authoring and management tools, interactive delivery, evaluation, analysis, tracking and reporting.

Arel IDEAL(TM), Arel VirtualClass(TM), Arel Campus(TM) and Arel Spotlight(TM), are trademarks of Arel Communications and Software Ltd. All other trade names are the properties of their respective owners.

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