Leslie's Poolmart, Inc. Implements Viryanet Service Hub for Advanced Scheduling and Wireless Field Service Automation

Southborough, Mass. - July 16, 2003 - ViryaNet (NASDAQ: VRYA), a leading provider of integrated mobile and Web-based software applications for workforce management and the automation of field service delivery, today announced that Leslie's Poolmart, Inc., the nation's leading retailer of swimming pool supplies and related products, with headquarters in Phoenix, AZ, has gone live with its implementation of ViryaNet Service Hub.

Leslie's PoolMart, Inc. is utilizing ViryaNet Service Hub, Mobile Workforce Management, and Service Scheduler applications to manage the installation, replacement, and onsite repairs of pumps, filters, heaters and other devices and equipment for public and private swimming pools.

"This implementation of ViryaNet Service Hub allows us to improve the way we schedule and dispatch our field engineers, provide visibility to our field resources and better manage customer information," stated Tabatha Gordon, director of service operations, Leslie's PoolMart, Inc. "The ViryaNet professional services team ensured an efficient implementation, helping us optimize the many processes that represent the foundation of our service business."

"ViryaNet Service Hub has automated the scheduling, dispatch, appointment booking, and mobile communication and field reporting of Leslie's repair and installation technicians," said Larry Hayward, president and CEO, Leslie's PoolMart. "We were pleased with the implementation performed by ViryaNet and look forward to the long-term benefits of automating our field resources."

ViryaNet Service Hub creates an environment in which service organizations, together with their customers, partners, vendors, and suppliers, collaborate in real-time to conduct work and share information. ViryaNet Service Hub includes an information portal that provides community access and collaboration; business intelligence for proactive reporting, analysis and action; automated workflow; contact management; and service delivery integration.

"Leslie's understands that the key to competitive advantage begins with service excellence," stated Win Burke, president and CEO, ViryaNet. "We are proud to help this fine company improve its operational performance, provide unrivaled levels of service, and achieve aggressive growth."

About Leslie's PoolMart

Founded in 1963, Leslie's Poolmart, Inc. is the country's leading specialty retailer of swimming pool supplies and related products. The Company markets its products through 438 retail stores in 36 states; a nationwide mail-order catalog; and an internet E-commerce site, www.lesliespool.com.

About ViryaNet

ViryaNet is a provider of software applications that improve the quality and efficiency of an organization's service operations. ViryaNet's flagship product - the award-winning ViryaNet Service Hub - combines the power of the Internet, the freedom of wireless technologies, and the resources of ViryaNet's deep service expertise to help companies improve workforce scheduling, dispatching, and activity reporting; customer contract and entitlement automation; and asset, logistics and repair management.

Customers in the utility, telecommunications, grocery and retail, high-technology manufacturing, HVAC, and other service industries use ViryaNet Service Hub to transition complex service business processes into a manageable, scalable Internet operation, with the goal of increasing service revenues, decreasing service costs, and maximizing customer satisfaction.

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, and its customer purchases. 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 F-1, as amended, declared effective by the SEC on September 19, 2000, and the other reports filed from time to time with the Securities and Exchange Commission. 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.