VRYA Viryanet Ltd. (MM)

ViryaNet (NASDAQ: VRYA), a leading provider of software applications that automate business processes for mobile workforce management and field service delivery, today announced that a one (1) for five (5) reverse split of its Ordinary Shares and Preferred A Shares will become effective and apply to the shareholders of ViryaNet immediately prior to the open of trading on The Nasdaq Capital Market on Tuesday, January 16, 2007. The reverse share split was approved by the Company�s Board of Directors further to the authorization by shareholders at the Company�s annual general shareholder meeting held on December 29, 2006. On January 16, 2007, ViryaNet�s Ordinary Shares will begin trading on a reverse split basis under the temporary Nasdaq trading symbol VRYAD for a period of twenty (20) trading days to reflect the post-split status of the Ordinary Shares. At the end of this period, the ticker symbol will revert to VRYA. Upon the effectiveness of the reverse share split, five Ordinary Shares of par value NIS 1.0 per Ordinary Share will be converted and reclassified as one Ordinary Share of par value NIS 5.0 per Ordinary Share on a post-split basis. In addition, five shares of Preferred A Shares of par value NIS 1.0 per Preferred A Share will be converted and reclassified as one Preferred A Share of par value NIS 5.0 per Preferred A Share on a post-split basis, and each existing stock certificate will represent one-fifth the number of shares shown thereon. Any fractional Ordinary Shares or Preferred A Shares that result from this share exchange will not be issued, but will be rounded up and exchanged for one (1) whole share. After the reverse share split, ViryaNet will have approximately 1.9 million Ordinary Shares outstanding and approximately 0.3 million Preferred A Shares outstanding. About ViryaNet ViryaNet is a provider of software applications that improve the quality and efficiency of an organization�s service operations. ViryaNet�s products enable companies in the utility, telecommunications, retail, insurance, and general service sectors to manage and optimize mission critical business processes. ViryaNet helps companies improve the full spectrum of workforce management processes, including customer interactions, managing work through more efficient scheduling and dispatching and right time field communication. By focusing on managing the exceptions, ViryaNet is able to provide its customers with a greater degree of value than other providers. The results are improved operational performance, a better customer experience and a higher degree of regulatory compliance. Visit ViryaNet 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 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 June 30, 2006, 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. Forward-Looking Statements Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: 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.