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PICUS COMMUNICATIONS SELECTS VIRYANET SERVICE HUB
October 17, 2000

Service Organization to Use ViryaNet to Manage Workforce, Integrate Enterprise, and Provide a Single Customer View

Southborough, Mass. - October 17, 2000 - ViryaNet Inc. (Nasdaq: VRYA), a provider of wireless workforce management solutions for field service communities, today announced that Picus Communications, a telecommunications company, has purchased ViryaNet's Service Hub software solution, including ViryaNet WorkForce Management, ViryaNet Service Contract, and ViryaNet Service Supply Chain.

Picus Communications, a competitive local exchange company (CLEC) with headquarters in Virginia Beach, VA, will use ViryaNet's Service Hub to unite its service community on the Internet and automate many of its service processes. Service Hub also will integrate with other applications, providing Picus with a composite view of its relationship with each of its customers, as well as quality performance measurements on the state of its business.

"We looked at many solutions and found that ViryaNet's Service Hub had the functionality that is necessary to help us address our current business requirements and position us for a competitive future," stated Chuck Manto, senior vice president, Picus Communications. "ViryaNet's Service Hub will help us automate our workforce activities and allow us to integrate our service processes with our other enterprise applications."

Picus Communications plans to use ViryaNet's Service Hub to integrate with provisioning software from MetaSolv, network management software from MicroMuse, billing applications from Cost Guard, and call center solutions from Clarify.

"Picus Communications is an organization that understands the importance of serving its customers effectively and solving service requests in a timely manner," said Jeff Galin, vice president, North American sales, ViryaNet. "Picus' vision is to bring together all members of its service community on a single Internet platform, better manage its workforce and parts, and provide an enterprise-wide view of all customer services."

About Picus Communications

Picus Communications is a next generation telecommunications provider of converged data and voice supplying businesses and homes with a complete broadband solution. The company is a facilities-based, full service provider of a range of services in the integrated communications marketplace. Utilizing xDSL technology, Picus provides its bundled products that lead the industry in the delivery of cutting-edge technology and customer-centric services. Picus' worldwide headquarters is located in Hampton Roads, Virginia.

About ViryaNet

ViryaNet Inc. (Nasdaq: VRYA) is a provider of wireless workforce management solutions for field service communities. These solutions unite on an Internet platform the many constituents involved in the delivery of service, and support mobile field engineers using wireless devices, such as PDAs, two-way pagers, and WAP-enabled cell phones. The Company's solutions for wireless workforce management enable a service organization to expertly schedule, monitor, report, and measure field service activity, meeting and exceeding installation, preventative maintenance, and break-fix obligations.

ViryaNet's professional services team and implementation partners enable implementation of the Company's solutions for wireless workforce management.

For additional information about ViryaNet and its solutions, visit the Company's website 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 future. All forward-looking statements included in this document are based upon information available to ViryaNet Inc. as of the date hereof, and ViryaNet Inc. 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 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.