contact:

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

or

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

E-Learning Expert Robert S. Zielinski Joins Arel Learning Solutions Inc. as Executive VP, Corporate Business Development

August 20, 2001

DAYTON, Ohio--Arel Learning Solutions Inc., a fully owned subsidiary of Arel Communications and Software, Ltd. (NASDAQ:ARLC), the world's leading provider of corporate training solutions, today announced that Robert S. Zielinski has joined the company as Executive Vice President, Corporate Business Development. He will be the company's chief e-learning expert responsible for partnerships and relationships in North America.

"Robert Zielinski has worked in the training industry for over a decade and is a leader, thinker and innovator in the e-learning field," said Mitchell Jones, CEO of Arel Learning Solutions, Inc. "As a key member of my executive team, he will build upon that industry expertise as he handles partnerships and relationships in North America - an integral component of our worldwide growth strategy to accelerate increased shareholder value."

Zielinski has served in several roles with learning organizations. As Vice President, Sales and Marketing, of Allen Interactions Inc., he built a field sales organization, oversaw the development of a corporate brand, managed the establishment of corporate relationships and led merger and acquisition activity. Prior to joining Allen Interactions Inc. in 1996, Zielinski co-founded The Human Element, Inc. He is a frequent speaker at industry leading conferences and a lecturer for public and corporate sponsored workshops, as well as a recognized author through his contributions to many professional journals and magazines.

"I joined Arel," Zielinski said, "because it approaches synchronous delivery of e-learning with a solid understanding of learning, and not simply as a software company adding feature sets to a product line. The combination of this mindset, the superior underlying technology, and a dedication to the successful implementation of enterprise-wide solutions made Arel an easy choice."

"Robert is a major asset to our company because he brings deep knowledge of the e-learning industry, a commitment to excellence in all forms of instructional design, the vision to understand how technology can improve learning, and the knowledge and relationships within the industry to create the best partnerships and alliances," Jones concluded.

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 suite of interactive distance learning and e-Training solutions. Arel IDEAL is the most advanced live and on-demand family 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 Learning Manager(TM), Arel Evaluator(TM), Arel Campus(TM) and Arel Vision(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.