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CAL-AIR AUTOMATES SCHEDULING AND PREVENTATIVE MAINTENANCE CAPABILITIES WITH VIRYANET SERVICE HUB
January 28, 2002

CAL-AIR Becomes First Customer To "Go Live" With ViryaNet Service Scheduler

Southborough, Mass. - January 28, 2002 - ViryaNet (NASDAQ: VRYA), a leading provider of wireless and Web-based software applications that improve service delivery, today announced that CAL-AIR, Inc., a leading specialty mechanical contractor that provides technical services to facilities throughout California, has gone live with ViryaNet Service Hub and solution suite. CAL-AIR is utilizing ViryaNet's solutions to schedule and dispatch its 260 field workers, track and schedule preventative maintenance service, and automate many of the tasks associated with contract administration.

CAL-AIR, the first customer to go live with ViryaNet Service Scheduler, is using the intelligent service scheduling solution to optimize its field technicians' schedules, deliver service on time, and comply with customer commitments.

"From the beginning, the ViryaNet team was proactive, organized, and self-sufficient - helping us to improve our business processes. They conquered a number of challenges in order to meet our timeline," said Casey Condron, president and COO, CAL-AIR. "With the J.D. Edwards' (NASDAQ: JDEC) implementation running in parallel, we had multiple demands, not to mention conflicting needs, and relied on our vendors to help direct and guide us to completion. We are very appreciative of ViryaNet's commitment to CAL-AIR."

ViryaNet's solutions integrate with other systems to drive a range of service-related activities. ViryaNet's solution, using XML, extracts customer data from a J.D. Edwards' database to provide customer service representatives with all of the necessary contract information, and then sends work order information to J.D. Edwards' billing system to initiate the billing process. The integration with J.D. Edwards' XPI allows ViryaNet's solutions to transfer information in real-time, enabling an invoice to be generated quickly and accurately. World Technology Services (WTS), a full-service J.D. Edwards solution provider based in Seattle, Washington, is hosting ViryaNet Service Hub for CAL-AIR.

"The initial implementation of ViryaNet's solutions has allowed us to move toward our goals of improving the way we manage our field engineers, tracking customer equipment and contract information, and scheduling and tracking preventative maintenance service," stated Katherine Litchfield CTO / director of information technology, CAL-AIR. "The success of our relationship with ViryaNet is evidenced by the quality and performance of their products, the efficiency of the implementation, and the value that we are now able to offer our customers every day. We look forward to future initiatives with ViryaNet."

With ViryaNet Service Hub, CAL-AIR expects to increase its service revenue, improve productivity, reduce capital needs, boost customer satisfaction, and gain a competitive advantage through improved customer service.

"CAL-AIR is an important implementation for us, as our first Service Scheduler customer and as an innovative user of our solutions," stated Win Burke, president and CEO, ViryaNet. "The implementation at CAL-AIR not only underscores the continued success of ViryaNet's products and professional services department, but also demonstrates the key strengths of our technology-the ability to help service organizations operate more efficiently and achieve their revenue goals."

About CAL-AIR

CAL-AIR, incorporated in California in 1953, has grown its technical services capabilities in service, construction, energy services, controls, and high purity piping. Expanding from a corporate base in Whittier to regional headquarters in Los Angeles, Sacramento and San Jose, and branch offices in Fresno, Glendale, Orange, San Diego, Santa Rosa, Foster City, Livermore and now Ontario. These regional and branch offices put CAL-AIR in every major market in California. Technical services include:

Service & Repair
Performance Contracting
Energy Services
Engineering & Design
Design-Build
Design-Assist
Construction
Advanced Technologies
Process Piping
In-Plant Services
Predictive & Preventive Maintenance
HVAC
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 repairs management.

Customers in the consumer goods, grocery and retail, telecommunications, manufacturing, utilities, third-party maintenance, and other industries use ViryaNet Service Hub to transition complex service business processes into manageable, scalable Internet operations, 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, its customer purchases, its future operational plans and objectives, its future business prospects, its future financial performance, and its future prospects for profitability. 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 include market acceptance of and demand for the Company's products, risks associated with a slow-down in the economy, risks associated with the events associated with the September 11, 2001 terror attacks in the US, 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. 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.