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Arel Communications & Software Ltd.
Izhak Gross
+972-8-9420880
grossiz@arel.co.il Arel Communications & Software Inc.
Moshe Ben-Yishai
770-396-8105
ben@arel.net Arel Learning Solutions Inc.
Mitchell E. Jones
937-415-1111
mjones@w2com.com

Arel Communications & Software Ltd.
Ann Michael
+972-8-9420880 ext. 282
ann@arel.co.il Arel Learning Solutions Inc.
Brad Schulte
+(937) 489-4084
bschulte@arel.net

or

Christine Sullivan
Phone: (978) 745-4878Fax: (978) 745-2553
chris@hawthornemedia.com

Learning Technology Provider Expanding Capabilities

June 1, 2001

DAYTON, Ohio- Arel Learning Solutions Inc, a fully owned subsidiary of Arel Communications and Software, Ltd (Nasdaq:ARLC - news), the world's leading provider of corporate training solutions, today announced that Deborah Gross has joined as the Vice President of Business Development for its Public Sector Division.
She will be responsible for both sales and project management for key clients.

Gross has several years of senior management experience in the IT services industry with a particular emphasis on business development in the eBusiness and eCommerce marketplace. Most recently, she was a Principal Consultant for PricewaterhouseCoopers. At PWC she managed customized software development and deployment projects. Previously, she served as a Partner in Information Engineering Corporation, where she was responsible for all aspects of a branch targeted at eBusiness and eCommerce software development projects for the government.

For clients such as units of the Department of Defense and major defense contractors, Gross has helped to identify critical needs in government education and has then managed projects to meet those needs. ``With its technology and its track record in consultative selling,'' said Gross, ``Arel offers exactly what private and public sector organizations need to realize the true benefits of the eLearning revolution.''

Brad Schulte, President of Arel Learning Solutions, observed that, ``We have an ongoing effort to increase our capabilities and boost our sales in the public sector. Deborah brings just the experience we need. Our specialty is the use of technology to enrich the learning experience. We're applying our considerable expertise in interactive learning to bring true collaboration to learning applications employed by government.''

About Arel Communications and Software, Ltd. Arel Communications and Software, Ltd., Yavne, Israel and its U.S.-based subsidiaries, Arel Communications and Software, Inc. and Arel Learning Solutions Inc., (www.arel.net) market the IDEAL complete family of interactive distance learning and e-Training solutions. Arel IDEAL is the most advanced live and on-demand suite of e-Learning solutions available today, incorporating the latest Web technologies and many years of diligent research and development.

Arel has extensive experience in installing and supporting global IDL networks for many of the world's largest multinational concerns in the telecommunications, financial services, automotive, retail, healthcare, manufacturing, and academic sectors. Equipped with the technology to offer unique business benefits, such as cost-effectiveness, certified results and just-in-time knowledge transfer, Arel solutions improve enterprise productivity, time-to-market, customer satisfaction and profitability.

Arel IDEAL(TM), Arel Spotlight(TM), Arel Spotlight On-Demand(TM), Arel Vision Arel Learning Manager, Arel Evaluator and Arel Campus(TM) are trademarks of Arel Communications and Software. All other trade names are the properties of their respective owners. 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 unknown risks and uncertainties. Many factors could cause the actual results, performance or achievements or 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.