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VIRYANET SERVICE HUB AND ASPECTIVE MOBILE WORKFORCE MANAGEMENT CHOSEN BY ORANGE UK TO DRIVE MAXIMUM NETWORK AVAILABILITY
September 04, 2003

Focuses engineers' time on network maintenance to increase customer service levels and business competitiveness

Southborough, Mass. - September 4, 2003 - ViryaNet (NasdaqSC: 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 its partner Aspective, Europe's leading eBusiness solution provider, has licensed ViryaNet Service Hub software to Orange UK, the country's largest mobile operator, in the first quarter of 2003. ViryaNet Service Hub will provide a GPRS-based mobile workforce management solution for Orange UK's field service force, which has responsibility for maintaining the network infrastructure in the UK, including more than 10,000 base stations.

Aspective, ViryaNet's premier partner in the UK, is responsible for marketing, selling, implementing, and supporting the ViryaNet solutions in the utilities, oil & gas, telecommunications, and other field services markets across Europe.

Based on ViryaNet's Service Hub technology, the solution will be delivered to more than 250 field-based engineers over Orange UK's own GPRS network. The system will optimize work scheduling and link office-based planners to members of the mobile workforce, each of whom will be equipped with a Personal Digital Assistant (PDA). This will allow Orange to maximize the time spent carrying out maintenance and upgrade work and ensure the service reliability it provides to its customers.

Roger Nichols, Head of Area Operations, Orange UK, said: "Maintaining the performance of our network, and providing a seamless service to our customers lies at the heart of our business strategy. We are fiercely committed to maintaining our quality service at a time when the network is being increased to support the rollout of 3G high speed data services." He added: "The ViryaNet and Aspective solution will allow our engineers to spend more time working on the network and minimize the time spent driving and performing administrative tasks such as telephoning for information or coordinating resources. It will also provide us with the data and analytical tools to accurately measure and improve our business processes."

The system allocates planned and unplanned maintenance requests to the most appropriate engineer taking into account their location, the priority of the job and the equipment needed to complete it. Jobs are received automatically by engineers on their GPRS enabled PDA together with all the information they may need to complete the task, including priority, fault detail, travel directions, site access, health and safety checks and site history. Engineers then provide status and completion reports back to planners in real-time and can continue using the PDA when network coverage is not available.

Nichols continued: "Our evaluation had four key metrics; functionality, proven fit for purpose, technical architecture, and confidence in the supplier's ability to deliver. The Aspective and ViryaNet Service Hub combination was selected unanimously by our project team in all four aspects."

"Orange UK's choice of ViryaNet Service Hub is a great endorsement of the strength of the ViryaNet platform and Aspective's competence in providing comprehensive solutions for mobile workforce management," said Keith New, vice-president, Aspective mBusiness. "We are committed to making this project another very successful implementation and a showcase for Orange UK's own customers with large field workforces."

"Aspective is leading a very aggressive charge, gaining momentum across Europe," stated Win Burke, president and CEO, ViryaNet. "Their sales and marketing efforts are gaining traction, and helping to increase the ViryaNet footprint world-wide. From their successful initiatives, we welcome Orange, a true giant in the telecommunications industry, into the ViryaNet family."

About Aspective

Aspective is Europe's leading eBusiness solution provider, specializing in 'front office' applications for sales, marketing and customer service. Through its four divisions - CRM, WebSphere, Managed Services and mBusiness - Aspective offers its clients a unique portfolio, covering strategic consultancy and implementation services through to a complete end-to-end solution - developed, hosted, managed, maintained, and supported for a fixed monthly fee throughout the project lifecycle.

Aspective employs over 130 people across Europe and has strategic partnerships with Siebel Systems, Inc., IBM, Sun Microsystems, Cable & Wireless, BroadVision, Actuate and ViryaNet. For more information, visit www.aspective.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 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 utility, telecommunications, high-technology manufacturing, grocery and retail, HVAC, and other industries use Service Hub to transition complex service business processes into a manageable, scalable Internet operation, with the goal of maximizing service revenues, decreasing service costs, tracking fleet inventory and increasing customer service.

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 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.