VRYA Viryanet Ltd. (MM)

ViryaNet Ltd. (NasdaqCM: VRYA), a leading provider of solutions that automate business processes for mobile workforce management and field service delivery, announced today that it has submitted written notice to The NASDAQ Stock Market, voluntarily requesting that its Ordinary Shares be delisted from The NASDAQ Capital Market at the opening of business on Monday, June 11, 2007. Memy Ish-Shalom, the Company�s president and chief executive officer, stated, �The Company�s Board of Directors carefully considered the Company�s past experience with NASDAQ standards along with the advantages and disadvantages of continued listing on The NASDAQ Capital Market, including the significant costs and resources required to maintain listing compliance and other regulatory burden. These regulatory costs are expected to increase substantially in the near future as a result of the SEC�s recent final determination for the compliance of Section 404 (Sarbanes-Oxley) on smaller public companies. The costs, resources, and management attention being expended by the Company to maintain its NASDAQ listing were determined to be significantly greater than the benefits received by the Company and its shareholders from continued listing. We believe that the delisting will reduce the Company�s administrative expenses related to maintaining NASDAQ listing compliance, will allow the Company to reinvest the savings in its products, and will enable management to focus more of its time and resources on operational matters directly impacting shareholder value.� The Company�s Ordinary Shares may become eligible for trading on the Over-the-Counter Bulletin Board (OTCBB) if a market maker makes application to quote the Ordinary Shares and such application is cleared by the NASD. The Company expects, but cannot be certain, that trading on the OTCBB would commence on June 11, 2007, or soon thereafter. In the event the Company�s Ordinary Shares are not traded on the OTCBB, the Company�s Ordinary Shares may be quoted in the �Pink Sheets� (www.pinksheets.com), an electronic quotation service for over-the-counter securities. However, there can be no assurance that any market maker or broker will continue to make a market in the Company�s Ordinary Shares. Mr. Ish-Shalom continued, �This decision does not reflect any change in the Company�s intention to continue to provide investors with information regarding significant business and financial developments. As well, ViryaNet remains steadfast in its goals of operational excellence, customer commitment, and market leadership.� 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�s products improve the functions of work order management, scheduling and dispatch, business activity monitoring, and mobile field communication. Embracing a business process management architecture, the ViryaNet products intelligently guide, automate, and optimize field service work � both simple and complex. 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.