VRYAD Viryanet Ltd. (MM)

ViryaNet (NASDAQ: VRYAD), a leading provider of software applications that automate business processes for mobile workforce management, today announced that one of the nation�s largest utility companies, located in the Southeastern United States, has chosen the ViryaNet technology to automate the activities of its field service staff. The ViryaNet technology was selected through a rigid competitive bid process that included numerous industry participants, including the incumbent provider. This tier-one utility, one of the largest and fastest growing utilities in the United States, purchased ViryaNet technology and ongoing maintenance through a ViryaNet strategic partner, a global systems integrator. With its deployment of the ViryaNet technology, the customer expects to increase its service revenue, improve customer satisfaction, and derive significant operational efficiencies through increased process automation, advanced reporting, and analytics. The customer intends to use the ViryaNet technology to complement its existing suite of CIS and human resource applications. The ViryaNet technology includes an advanced algorithmic optimizer and a robust mobile application that will be used by over 300 users in this initial phase. The ViryaNet technology will optimally schedule these resources based on location, skill sets, work to be done, and other corporate business requirements; ensure work is properly dispatched; and provide the field resources with a robust mobile platform for completing their work. "In this aggressively competitive marketplace, utilities strive to improve the customer experience while reducing operational costs," stated Memy Ish-Shalom, president and CEO, ViryaNet. "We are delighted to welcome another tier-one utility customer into the ViryaNet family. This new ViryaNet customer is a testament to the successes within our partner network. Our partners' market presence combined with the world-class ViryaNet product is an unbeatable combination." About ViryaNet ViryaNet is a provider of software applications that improve the quality and efficiency of an organization�s service operations. ViryaNet�s products enable companies in the utility, telecommunications, retail, insurance, and general service sectors to manage and optimize mission-critical business processes. ViryaNet�s products improve the functions of work order management, scheduling and dispatch, business activity monitoring, and mobile field communication. Embracing a business process management architecture, the ViryaNet products intelligently guide, automate, and optimize field service work � both simple and complex. The results are improved operational performance, a better customer experience, and a higher degree of regulatory compliance. Visit ViryaNet at www.viryanet.com. Safe Harbor Statement Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: The statements contained in this press release that are not purely historical are forward-looking statements within the meaning of Section 21E of the Securities and Exchange Act of 1934, as amended, including statements regarding ViryaNet�s expectations, beliefs, intentions, or strategies regarding the capabilities of its products, its relationships with its customers, its customer purchases, its future operational plans and objectives including integration of other businesses, its future business prospects, its future financial performance, its future cash position, and its future prospects for profitability. All forward-looking statements included in this document are based upon information available to ViryaNet Ltd. as of the date hereof, and ViryaNet Ltd. assumes no obligation to update any such forward-looking statements. Forward-looking statements involve risks and uncertainties, which could cause actual results to differ materially from those projected. These and other risks relating to ViryaNet�s business include market acceptance of and demand for the Company�s products, risks associated with a slow-down in the economy, risks associated with the financial condition of the company�s customers, risks associated with competition and competitive pricing pressures, risks associated with increases in costs and operating expenses, risks in technology development and commercialization, the risk of operating losses, risks in product development, risks associated with international sales, and other risks that are set forth in ViryaNet�s Form 20-F, dated July 15, 2005, and the other reports filed from time to time with the Securities and Exchange Commission. Reported results should not be considered an indication of future performance. You should not place undue reliance on these forward-looking statements, which speak only as the date hereof. ViryaNet disclaims any obligation to publicly update or revise any such forward-looking statements to reflect any change in our expectations or in events, conditions, or circumstances on which any such statements may be based, or that may affect the likelihood that actual results will differ from those set forth in the forward-looking statements.