ARLC Arel Communications & Software Ltd. (MM)

Arel Communications and Software Ltd. (NASDAQ: ARLC) announced today that it will hold a special shareholders meeting on Sunday, February 26, 2006 at 11:00 a.m. at the company's offices in Nes Tsiona, Israel, for the purpose of voting on the company's previously announced going-private transaction. Shareholders of record as of January 24, 2006 are entitled to vote at the meeting, and will receive proxy and other definitive materials related to the transaction by mail. Specific voting instructions will be included on the accompanying proxy card. Shareholders who cannot attend the meeting in person may vote their proxies according to these instructions. Following approval of the transaction by its shareholders, Arel will request that the Tel-Aviv District Court in Israel approve the decision of the company's shareholders. The Company intends to deregister its shares under the Securities Exchange Act of 1934 and de-list from The Nasdaq Capital Market, immediately following the approval of the Court. All shareholders are urged to read the definitive Schedule 13E-3 and accompanying materials that have been filed by the company, because they contain important information about the proposed transaction. If you have not received these materials by February 15, 2006, please contact Arel's transfer agent: American Stock Transfer & Trust Company, 718-921-8275. Shareholders may also obtain such documents free of charge at the Web site maintained by the SEC at www.sec.gov. About Arel Communications and Software: Arel Communications and Software is a leader in conferencing and collaboration solutions. Arel is focused on enhancing communications, facilitating workgroup collaboration and driving productivity in the enterprise. By providing a comprehensive application suite, Arel Spotlight(TM), for leveraging enterprise networks for rich-media communications, Arel replicates in-person meetings in the online environment. Arel's newest solution, Arel Anyware, is an audio-visual plug-in that establishes true "face-to-face" meetings over the internet. Requiring only a webcam for full-featured video operability, users can add video conferencing to any web or IM/Presence application (such as Microsoft(R) Office Live Meeting(TM)). Combining voice, video and data conferencing in one easy-to-use Web-based solution, Arel fosters interactive communications that significantly improve work environments today. Arel's solutions impact key business processes such as corporate and marketing communications, distance learning, product development, customer relationship management, and supply chain management. Allowing geographically dispersed users to work together in groups, attend webinars and panel discussions, participate in training courses, and have one-on-one meetings with customers or colleagues, from virtually anywhere, Arel Spotlight is a powerful tool for critical business communications. For more information, visit www.arelcom.com. This press release contains forward-looking statements that are subject to risks and uncertainties. Factors that could cause results to differ materially from these forward-looking statements include, but are not limited to, the receipt of corporate and third party approvals, obtaining the financing to carry out the proposed plan, general business conditions in the industry, changes in demand for products, the timing and amount or cancellation of orders and other risks detailed from time to time in Arel Communications and Software's filings with the Securities and Exchange Commission. Arel is under no obligation (and expressly disclaims any such obligation) to update or alter any forward-looking statements whether as a result of new information, future events or otherwise. All trademarks recognized.