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VIRYANET APPOINTS AMI SHPIRO AS SENIOR VICE PRESIDENT, EUROPE, MIDDLE EAST, AND AFRICA
August 16, 2001

Seasoned Professional Brings Industry Expertise and Strong Revenue Performance Record

SOUTHBOROUGH, Mass. - August 16, 2001 - ViryaNet (NASDAQ: VRYA), a leading provider of enterprise and mid-market wireless workforce management solutions for field service communities, today announced the appointment of Ami Shpiro as senior vice president, Europe, Middle East, and Africa (EMEA). Mr. Shpiro will be responsible for overseeing ViryaNet's sales, marketing, and business development operations in EMEA.

Mr. Shpiro brings almost 20 years' experience in the software industry, spanning sales, business development, marketing, customer support, project management, consulting, and product and application development. He has worked in a variety of international environments, most recently focusing on the European customer relationship management (CRM) market. He possesses an in-depth understanding of the issues companies face with automating and improving the efficiency of their service organizations. Ami previously held the position of president of European operations at ClickSoftware.

"Ami is an accomplished professional who has established a record of business success," said Win Burke, president and CEO, ViryaNet. "With his proven track record, experience, intimate understanding of the market issues, and industry contacts, we expect that ViryaNet will be well positioned to compete for the vast opportunities that exist across EMEA."

"ViryaNet's comprehensive mobile service delivery solution is impressive, both in depth and breadth of functionality as well as competitive pricing and unbeatable value," said Mr. Shpiro. "ViryaNet is committed to success, and I look forward to being part of the ViryaNet team to help make EMEA a strong contributor to that success."

About ViryaNet

ViryaNet is a leading provider of enterprise and mid-market wireless workforce management solutions for field service communities. These solutions enable field service organizations to efficiently schedule and dispatch field service personnel, capture and record logistics and labor activity, and monitor, report, and measure this activity - meeting an organization's installation, preventative maintenance, and break-fix obligations. ViryaNet's wireless workforce management solution supports a variety of wireless devices over standard wireless networks.

ViryaNet's solutions allow organizations to integrate popular front- and back-office applications. ViryaNet's professional services team and implementation partners enable implementation of the Company's solutions for wireless workforce management.

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 and its relationships with its customers. 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.