FY15 Q2 ARI Network Services, Inc. │ investor.arinet.com

Statements in this presentation are "forward-looking statements" within the meaning of the Private Securities Litigation

Reform Act. The forward-looking statements can generally be identified by words such as "believes," "anticipates,"

"expects" or words of similar meaning. Forward-looking statements also include statements relating to the Company's

future performance, such as future prospects, revenues, profits and cash flows. The forward-looking statements are

subject to risks and uncertainties, which may cause actual results to be materially different from any future performance

suggested in the forward-looking statements. Such risks and uncertainties include those factors described in Part 1A of

the Company’s most recent Annual Report on Form 10-K, as such may be amended or supplemented by subsequent

Quarterly Reports on Form 10-Q or other reports filed with the Securities and Exchange Commission. Readers are

cautioned not to place undue reliance on these forward-looking statements. The forward-looking statements are made

only as of the date hereof, and the Company undertakes no obligation to publicly release the result of any revisions to

these forward-looking statements. For more information, please refer to the Company’s filings with the Securities and

Exchange Commission.

During this presentation, we will discuss GAAP measure such as net income, as well as certain non-GAAP measures

such as EBITDA. We have posted on www.investor.arinet.com, a reconciliation of these non-GAAP financial measures

to the most comparable financial measures under GAAP.

1

Unique Business Model & Value Proposition

– STRONG MARGIN PROFILE – Gross margin and EBITDA margin between

77% – 81% and 12% – 24%, respectively, over last 5 years

– HIGH BARRIERS TO ENTRY – ARI owns and manages the largest content library of

whole goods and Parts, Garments & Accessories (“PG&A”)

– SIGNIFICANT GROWTH OPPORTUNITIES

– INSIDERS OWN 8.5%

3

• 120+ Manufacturers

• 500K Models

• 10MParts

4

• 1,400+ Manufacturers

• 500K Parts

5

• 315 Manufacturers

• 176 Models

6

1,400+ Manufacturers

500K Parts

315 Manufacturers

176K Models

120+ Manufacturers

500K Models

10MParts

7

Lead Gen

Websites

eCommerce

Websites DaaSDigital

Marketing

Mobile

Apps

Business

Management

8

In-Store

• Dealer Business Management System

• OEM parts lookup

• Aftermarket Parts, Garments &

accessories (PG&A) lookup

• Lead Management

Online

• Lead Generation

• eCommerce

• OEM Parts

• Aftermarket PG&A

• Digital Marketing Services

Dealers Distributors Manufacturers (OEM)

9

10

120+ Manufacturers

500K Models

10MParts

1,400+ Manufacturers

500K Parts

315 Manufacturers

176K Models

Business Mgmt.eCatalogsWebsites Digital Marketing

11

Appliances Marine & RV Outdoor Power Wheel & Tire Powersports

12

13

•

• ²

•

•

• ³

•

•

66%

40%

90%10%

66%

40%

90% 10%

2%

17%

0%

Roy W. Olivier President & CEO

Marv BergV.P. of Operations

Rob A. Ostermann Chief Technology Officer

Bill Nurthen Chief Financial Officer

Brad Smith V.P. Product Management

Management & Insiders own 8.5%

Robert JonesV.P. of Sales

14

Joined ARI September 2006 as Vice President of Global Sales and Marketing / Appointed as President and CEO in May 2008 /

Director since 2008 / Previously worked for three Fortune 500 companies before starting his first software company in 1989 focused

on developing multi-media CD-ROM titles. Sold that company in 1993 to start a software company focused on developing software to

help dealers in the construction, material handling, mining, and outdoor power vertical markets which was sold to ProQuest (now

Snap-On) in 2000.

Joined ARI as Chief Financial Officer in November 2013 / CFO of Cabrera Capital Markets, LLC 2011-2013 / CFO of bioLytical

Laboratories 2008 to 2011 / Vice President of Finance and then CFO of Inforte Corp., NASDAQ (INFT) 1999 to 2007 / Financial

operations roles at Platinum Technology International NASDAQ (PLAT) / MBA from The Kellogg School of Management at

Northwestern University / BBA undergraduate degree from The University of Notre Dame.

Appointed Chief Technology Officer of ARI in August 2012 having served as Executive Director of Technology since November 2011

and Director of Product Engineering since joining the Company in June 2008 / Served in various technology management and

development roles at Parcel Pro Inc. in Torrance, California and The California Breath Clinics in Los Angeles, California from 2003-

2008 / Lead developer at OC-Net, Inc. in Cypress, California / B.S. in Business Administration, Computer Information Systems from

California State University.

Appointed Vice President of Sales in August 2014 / Most recently served as ARI’s Executive Director of Sales and served as Director

of Dealer Sales following ARI’s November 2012 acquisition of Duluth, Minn.-based 50 Below / Joined 50 Below as supervisor of the

UPS Program in the Financial Services Division in 2011 / Promoted to Sales Manager of the Powersports division in January 2012

and Director of Sales and Service in May 2012.

Appointed Vice President of Operations in April 2012 / Named an executive officer in August 2012 / Served as Director of Planning &

Operations since August 2011 and Director of Finance since joining the Company in March 2010 / Served in various financial

positions for Time Warner Cable, Inc. and Norlight Telecommunications, both located in Milwaukee, WI / Successful business

owner/operator in Milwaukee, WI from 2001 to 2005 /Licensed stock broker from 1997 to 2000 / B.A. in Finance from Michigan State

University.

Appointed Vice President of Product Management in January 2014 / Joined ARI in 2007 and most recently served as Director of

Product Management and General Manager of Aftermarket / Double B.A. in Web/Technology Development and Spanish from the

University of Wisconsin-Stevens Point / MBA from the University of Wisconsin-Eau Claire in 2012 / In conjunction with MBA program,

consulted on an East Asian supply-chain consultancy for a Fortune 500 marine manufacturer.

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• Total Revenue $10.1M

• 90.2% Recurring Revenue

• 81.6% Gross Margin

• Dealer Sales Bookings Up 31.5%³

• Operating Cash Flow of $1.1M

• Total CAC² ‐ 9.3 months

• EBITDA Margin of 16.1%

Mill

ion

s

Quarterly Recurring Revenue (QRR) and Churn

Most Recent Quarter highlights1

-4.5%

-4.0%

-3.5%

-3.0%

-2.5%

-2.0%

-1.5%

-1.0%

-0.5%

0.0%$0.0

$1.0

$2.0

$3.0

$4.0

$5.0

$6.0

$7.0

$8.0

$9.0

$10.0

Q2 FY13 Q3 FY13 Q4 FY13 Q1 FY14 Q2 FY14 Q3 FY14 Q4 FY14 Q1 FY15 Q2 FY15

QRR Churn %

$0.0

$5.0

$10.0

$15.0

$20.0

$25.0

$30.0

$35.0

$40.0

FY2011 FY2012 FY2013 FY2014 TTM

Mill

ion

s

17

FY = Fiscal Year Ending July 31

Recurring Revenue Total Revenue

$21.3$22.5

$30.1

$36.0

81.7%

$33.0

83.2% 89.7% 93.6% 91.1%

$0.0

$1.0

$2.0

$3.0

$4.0

$5.0

$6.0

FY2011 FY2012 FY2013 FY2014 TTM

$4.4

$3.5$3.9

$5.5

Mill

ion

s

23.6% 19.3% 11.6%

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FY = Fiscal Year Ending July 31

11.7% 15.2%

Includes $1.2M of acquisition-related costs.

Integration related cost-reduction in

FY14Q2, $2.5M annualized

$5.0

$0.0

$1.0

$2.0

$3.0

$4.0

$5.0

$6.0

FY2011 FY2012 FY2013 FY2014 TTM

Integration related cost-reduction in

FY14Q2, $2.5M annualized

Mill

ion

s $3.5 $3.5

$2.4

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FY = Fiscal Year Ending July 31

$2.4

Notes:• FY14 Q3 & Q4 cash flows combined were $2.4M

• FY15 Q1 & Q2 cash flow of $2.7M

$5.1

Impact of two acquisitions

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Cash and Investments: $1.688M¹

Federal NOLs of $5.834M

Total Debt and Lease Obligations: $10.0M¹*

Shares Outstanding: $14.35M³

Stock Price: $3.19²

Market Cap.: $45.8M²

Enterprise Value: $54.1M²

TTM Enterprise Value/EBITDA: 9.9x²

TTM Enterprise Value/Revenues: 1.5x²

¹ as of and for the quarter ending January 31, 2015

² as of Market Close May 6, 2015

³ as of March 1, 2015

* Includes $5.9M of SVB Term Note @ 3.75% refinanced as part of TCS transaction. Also includes $2.9M of Seller Note @ 5.0% associated with TCS transaction.

On May 7, 2015, the Company announced that it priced an

underwritten offering of 1,530,435 shares of its common stock at a

price of $3.00 per share. Including the over-allotment, gross

proceeds are expected to be approximately $5.3M and net

proceeds $4.7M.

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As part of the offering, ARI disclosed estimates for its fiscal third quarter

ending April 30, 2015. The Company estimates revenue for the quarter will be

in the range of $10.1 million to $10.3 million and earnings per share (EPS) in

the range of $0.01 to $0.02. This unaudited preliminary financial data is

based on the Company’s estimates and subject to completion of the

Company’s final closing procedures.

ARI intends to use the net proceeds from the offering to invest in or to

acquire, from time to time, businesses that align with ARI’s core acquisition

strategy, to repay the outstanding balance of $1,750,000 on its line of credit

which was incurred in connection with its recent acquisition of the assets of

TASCO Corporation, thus making it fully available for additional transactions,

and for general corporate purposes.

TASCO Corporation (“TASCO”), a leading provider of business

management, point of sale and other software exclusively

designed for automotive tire and wheel dealers (“T&W”).

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TASCO is expected to add $2M to ARI’s FY16 revenue numbers. We also

expect TASCO to be profitable and cash flow positive, and ARI expects the

transaction to be accretive to its FY16 EBITDA.

Consideration for the transaction was $1.75M cash paid at closing and

$800,000 of equity (242,424 shares of ARI Common Stock) issued at closing.

There is also a $200,000 cash payment on the anniversary of the transaction

subject to set-off and a working capital adjustment.

The acquisition was funded through our Line of Credit with Silicon Valley

Bank and cash from operations.

The acquisition of TASCO consolidates two industry-leading business management software platforms cementing ARI’s position as the most complete technology provider in the T&W market. This will result in an immediate increase in market share and we expect it to serve as a catalyst for growth allowing current customers and prospects to benefit from our expanded product portfolio.

Tire Company Solutions, LLC (“TCS”), a leading provider

of software, websites and marketing services designed

exclusively for automotive tire and wheel dealers.

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TCS is expected to add $5M to ARI’s FY15 revenue numbers and

projects that the transaction will produce $6M in incremental revenue

over the next 12 months. Also, TCS is profitable and cash flow

positive, and ARI expects the transaction to be accretive to its FY15

EBITDA.

ARI paid approximately $4.2 million in cash at closing subject to a

post-closing adjustment based upon a target closing net asset value.

ARI agreed to pay a $3.0 million seller note, and $1.9 million in equity

(619K shares of ARI common stock), as well as an additional “earn-

out” to be paid contingent upon specified revenue goals.

The acquisition was funded through a combination of refinancing our

Senior Debt with Silicon Valley Bank, our Line of Credit and cash

from operations.

YEAR COMPANY PRODUCT VERTICAL

2015 TASCO Corporation Business Management Systems (“DMS”) Tire & Wheel

2014 TCS DMS, Lead Gen/eCommerce Tire & Wheel

2013 DUO Web Services Digital Marketing Services Powersports

2012 50 Below Lead Gen/eCommerce Home Medical, Tire & Wheel

2012 Ready2Ride eCat Powersports

2009 Channel Blade Lead Gen/eCommerce Marine

2008 Info Access eCat Appliances

2007 OC-Net Lead Gen/eCommerce Powersports

2003 VertX Commerce Lead Gen/eCommerce Powersports

1999 Network Dynamics eCat Outdoor Power

1998 Empart Technologies eCat RV

1996 CD*\.IMG eCat Outdoor Power, Powersports, Marine

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# U.S.

Dealers4,700 11,000 3,100 30,000 2,000 18,000 25,000 80,000

ARI Website

Customers1,900 883 400 N/A 29 3,000** 200 0

ARI

eCatalog

Customers3,350* 4,081 3,000* 1,890 135 N/A N/A 0

*total number is approximate and includes a large bulk customer’s estimates

** includes TCS acquisition 27

• OEM Sales

• Dealer Inside Sales

• International Sales

100Over

Countries Served

Americas & EMEA

28

350Employees

*

*includes TCS & TASCO acquisition

eCatalog Installs

Website Installs

Amount of Beneficial Ownership (1) Percent Ownership

Wellington Management Company (2) 1,475,300 9.92%

Wynnefield Funds (3) 1,273,435 8.57%

Michael D. Sifen, Inc. (4) 1,205,128 8.11%

Park City Capital, LLC (5) 1,000,000 6.73%

Peter H. Kamin (6) 972,654 6.54%

Briggs & Stratton Corporation (7) 840,000 5.65%

Grand Slam Asset Management, LLC (8) 795,861 5.35%

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¹As of as of February 28, 2015, unless otherwise noted

(1) Except as otherwise noted, the persons named in the above table have sole voting and investment power with respect to all shares shown as beneficially owned by them. Includes options exercisable within

60 days of February 28, 2015.

(2) Ownership information is provided as of December 31, 2014 based upon Schedule 13G amendment filed on February 12, 2015.

(3) Ownership information is provided as of the Schedule 13D filed on December 4, 2014 by Wynnefield Partners Small Cap Value, L.P., Wynnefield Partners Small Cap Value, L.P. I, Wynnefield Small Cap

Value Offshore Fund, Ltd., Wynnefield Capital Management, LLC, Wynnefield Capital, Inc., Nelson Obus and Joshua Landes.

(4) Ownership information is provided as of March 15, 2013 based upon Schedule 13G filed on May 22, 2013 by Michael D. Sifen, Inc. Total includes 498,461 shares of common stock held by Michael D. Sifen

and 706,667 shares of common stock held by Michael D. Sifen, Inc., an entity controlled by Mr. Sifen.

(5) Ownership information is provided as of the Schedule 13D filed December 10, 2014.

(6) Ownership information is provided as November 21, 2014 based upon Schedule 13D filed November 21, 2014.

(7) Ownership information is provided as of March 16, 2000 based upon Schedule 13D amendment filed April 3, 2000.

(8) Ownership information is provided as December 31, 2014, based upon Schedule 13G amendment filed February 11, 2015.

Name of Officer / Director Amount of Direct Beneficial Ownership (1) Percent Ownership

Roy W. Olivier (7) – President & CEO 741,890 4.99%

Chad J. Cooper – Director 108,040 *

William C. Mortimore – Director 107,726 *

P. Lee Poseidon – Director 84,554 *

William H. Luden, III – Director 85,315 *

Robert Y. Newell, IV - Director 66,826 *

Marvin A. Berg, III – VP Operations 52,329 *

William A. Nurthen – Chief Financial Officer 22,465 *

All current executive officers and directors as a group. 1,269,145 8.54%

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* Denotes less than 1%

¹As of February 28, 2015 unless otherwise noted

(7) Mr. Olivier’s total includes 193,200 shares held in the Company’s 401(k) plan, of which Mr. Olivier is a trustee with voting power. Mr. Olivier disclaims any beneficial ownership in these shares in excess of his

pecuniary interest 13,246 shares.

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