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VIRYANET SIGNS CONTRACT WITH BIRCH TELECOM; VIRYANET SERVICE HUB TO OPTIMIZE BIRCH'S FIELD SERVICE WORK FORCE
May 04, 2004

Southborough, Mass. - May 4, 2004 - 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 Birch Telecom, a Kansas City, MO-based telecommunications company that serves more than 50 major metropolitan markets across 12 states, has chosen ViryaNet Service Hub for Telecommunications to optimize the scheduling and management of its field service organization.

Formed in 1997, Birch owns and operates an integrated voice and data network, and continues to introduce innovative products on an ongoing basis.

ViryaNet Service Hub for Telecommunications will offer Birch with comprehensive work order management, including enterprise scheduling and dispatch, field parts logistics, and mobile activity reporting - enabling Birch to better manage and improve the effectiveness of its field engineers and third-party contractors, who deliver a broad range of facilities-based telephony and data services. In addition, ViryaNet Service Hub for Telecommunications will directly interface to Birch's provisioning, trouble-ticketing, parts logistics, asset management, and billing applications.

"We looked at many solutions, and found that ViryaNet Service Hub for Telecommunications provides the broadest coverage for our requirements, which include appointment and schedule optimization, mobile device support, parts and asset tracking, and service level agreement management", stated Agnes Sammur, Director of Application Support, Birch. "In addition, the people with whom we've worked at ViryaNet are very experienced in this area, and their best practices will improve and expedite our implementation."

"Telecommunications companies today experience a new climate of competition where the ability to deliver better customer service at lower cost offers a significant competitive advantage," stated Win Burke, president and CEO, ViryaNet. "ViryaNet fundamentally understands and addresses these challenges with a product that incorporates over a dozen years' experience in field service automation, coupled with extensive knowledge of the specific needs of the telecommunications industry, which we have acquired through numerous implementations of ViryaNet Service Hub for Telecommunications."

"We believe that ViryaNet Service Hub for Telecommunications provides the best technology and functionality to support Birch's goal of improving the customer experience," stated Samuel Silva, Manager of Financial Applications, Birch Telecom.

About Birch Telecom

Targeting small and mid-sized businesses, Birch Telecom serves 500,000 lines in 50-plus major metropolitan markets across 12 states. Birch owns and operates an integrated voice and data network, and offers a broad portfolio of local, long-distance and Internet services. For more information about Birch, please call toll-free (866) 347-3843 or visit www.birch.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 depot repair management.

Customers in the utility, telecommunications, grocery and retail, high-technology manufacturing, HVAC, and other 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, 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 20-F, dated July 15, 2003, 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.

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