INVESTOR PRESENTATION

FY17 Q1 ARI Network Services, Inc. | investor.arinet.com

NASDAQ: ARIS

SAFE HARBOR STATEMENT

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.

COMPANY OVERVIEW

Roy W. Olivier, President & CEO

ARI’S INVESTMENT HIGHLIGHTSStrategic Financial

• Industry-leading provider of software tools and marketing

services

• #1 or #2 in all core markets served

• Manage largest content library in markets served

• Data both a moat and a growth driver

• Attractive market opportunity

• Strong consumer spending, health care trends, and online

shopping trends

• Market dynamics driving online lead generation and eCommerce

• Multiple growth opportunities

• Grown the number of markets served from 4 to 8

• Grown the number of products/services from 2 to 4

• Raised the ARPD on new products

• Raised TAM from $100M to over $1.5B

• Europe and Asia remain largely untapped

• Consistent track record of growth and profitability

• 17.5% revenue CAGR over last five years

• In FY16, Adjusted EBITDA and cash flow growth outpaced

revenue growth

• Profitable past 12 years

• Strong recurring revenue profile• Over 90% of revenue is recurring

• Highly diversified customer base

• 22,000+ customers

• Largest Customer is <3% of Revenue

• Profitable and Cash Flow Positive

• FY17 Q1 Adjusted EBITDA margins of 16.4%

• Operational cash flow inline with Adjusted EBITDA

WHAT DO WE DO?

We provide software and related services to help our customers

Sell More Stuff™

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

WHO ARE OUR CUSTOMERS

Dealers Distributors Manufacturers (OEM)

Our Customers are:

PowersportsOutdoor Power

Marine RVAppliances

CORE

Tire & Wheel HME

Markets We Serve:

GROWTH

Aftermarket

Auto Service

What “Stuff”?Whole Goods

(Tires, Bike, Boat, RV) OEM PartsAftermarket Parts,

Garments &

Accessories (PG&A)

Service & Tire

CONTENT THAT DRIVES COMMERCE

OEM Parts

120+ Manufacturers

500K Models

10MParts

Aftermarket PG&A

1,400+ Manufacturers

500K Parts

Whole Goods

315 Manufacturers

176K Models

Improves productivity

and profitability at

Dealership

Business

Management

POS / Inventory Mgmt.

& Accounting

Drive traffic to dealership

• Leads

• eCommerce

Digital Marketing

Leads for major units

eCommerce sales

Web Presence

Lead Gen &

eCommerce WebsiteseCatalogs

Increases sales in Dealership

Improves customer satisfaction

SaaS or

Subscription

Perpetual License

+ Maintenance

or

SaaS

SaaS or

Subscription

SaaS

STRATEGIC GOALS - BACKGROUND

• To be the leader in providing software and services that help our customers Sell More Stuff™.

- Complex equipment will continue to be sold primarily through a dealer network.

- Approximately 7 out of 10 units sold originate as web leads.

- Online shopping is growing faster than in-store.

- Search is now over 50% mobile.

- ARI has a strong online footprint with supporting analytics (8,000+ Dealer Sites).

- We intend to integrate or own in-store systems (Business Management/Point of Sale).

STRATEGIC GOALS – THE FUTURE

• We intend to be the leader in helping dealers capitalize on the convergence of online and in-store purchases and research.

- Integrate customer search with the dealership’s location via mobile

- Integrate the customer in-store experience with search and purchasing history via mobile

- Create personalized shopping experiences based on models owned, history, etc.

STRATEGIC FOUNDATIONS

• Nurture and retain existing customers through world class customer service and product feature upgrades.

• Drive organic growth through innovative new service offerings, differentiated content and geographic expansion.

• Lead the market with open integration to related platforms.

• Successfully execute acquisitions that align with our core strategy.

FOUR POINT GROWTH STRATEGY

• More Markets

¹Total addressable market represented by the green bars . Percentages represent ARI’s market share , or the percentage of U.S. dealers that currently use 1 or more of our products. For example, ARI currently has 40%

market-share of the OPE vertical; with 40% of those dealers using 1 or more of ARI’s products.

66%

40%

90% 10%

25K Dealers

GROWTH DRIVERS

• More Markets

• More Products • eCatalog

• Lead Gen & eCommerce

• Point of Sale / Dealer Business Mgmt.

Systems (POS/DBMS)

• Digital Marketing Services (DIGMS)

• Cross- Selling Opportunities

GROWTH DRIVERS

• More Markets

• More Products

• Higher ARPD*• eCatalog $2,376

• LeadGen/eCommerce $2,974

• POS/DBMS $4,402

• DIGMS $2,592

*Annual Recurring Revenue – annualized as of the quarter ending October 31, 2016

GROWTH DRIVERS

• More Markets

• More Products

• Higher ARPD

• Acquisitions that align

with our core strategy

• Completed 15 in last ten years

• Fragmented markets with many small competitors

• We partner with over 90 today

• One of our Core Competencies

• ~50% Future Growth

HISTORICAL GROWTH

$0

$5,000

$10,000

$15,000

$20,000

$25,000

$30,000

$35,000

$40,000

$45,000

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017*

Historical Revenue

Other

Non-Strategic Revenue

Non-Recurring Revenue

• Pro Svcs

• Older Businesses

*2017 data estimated based off first quarter revenue annualized.

HISTORICAL GROWTH

$0

$5,000

$10,000

$15,000

$20,000

$25,000

$30,000

$35,000

$40,000

$45,000

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017*

Historical Revenue

Other eCatalog

eCatalog

• $17.8M Revenue

• 17,500+ Dealers

• 100 Countries

*2017 data estimated based off first quarter revenue annualized.

HISTORICAL GROWTH

In FY13 Q3 we made a change to our lead generation service business model, eliminating the pass-through cost of purchased ad words from the search engine providers on behalf

of our customers.

$0

$5,000

$10,000

$15,000

$20,000

$25,000

$30,000

$35,000

$40,000

$45,000

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017*

Historical Revenue

Other eCatalog Website

Lead Gen/eCom Websites

• $25M Revenue

• 8,000 Websites

*2017 data estimated based off first quarter revenue annualized.

HISTORICAL GROWTH

In FY13 Q3 we made a change to our lead generation service business model, eliminating the pass-through cost of purchased ad words from the search engine providers on behalf

of our customers.

$0

$5,000

$10,000

$15,000

$20,000

$25,000

$30,000

$35,000

$40,000

$45,000

$50,000

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017*

Historical Revenue

Other eCatalog Website Digital Marketing

Digital Marketing Services

• $2.8M Revenues

• 800+ Customers

*2017 data estimated based off first quarter revenue annualized.

HISTORICAL GROWTH

In FY13 Q3 we made a change to our lead generation service business model, eliminating the pass-through cost of purchased ad words from the search engine providers on behalf

of our customers.

$0

$5,000

$10,000

$15,000

$20,000

$25,000

$30,000

$35,000

$40,000

$45,000

$50,000

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017*

Historical Revenue

Other eCatalog Website Digital Marketing POS

Business Mgmt System/POS

• $2.7M Revenues

• 1,500 Locations

*2017 data estimated based off first quarter revenue annualized.

HISTORICAL GROWTH

In FY13 Q3 we made a change to our lead generation service business model, eliminating the pass-through cost of purchased ad words from the search engine providers on behalf

of our customers.

$0

$5,000

$10,000

$15,000

$20,000

$25,000

$30,000

$35,000

$40,000

$45,000

$50,000

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017*

Other eCatalog Website Digital Marketing POS

Projecting $53M – 55M in revenue for FY17

*2017 data estimated based off first quarter revenue annualized.

GROWTH OPPORTUNITY

Customer

Count

US TAM

# of CustomersARPD TAM Dollars

eCatalog 16,200 20,800 $2,376 $38M

Lead Gen & eCommerce 8,030 143,800 $2,974 $422M

Point of Sale/DBMS 500 143,800 $4,402 $685M

Digital Marketing 1,015 143,800 $2,592 $728M

Total US $1.9B

After various adjustments we think TAM is $1.5B

eCat – Total includes “Bulk” license agreements without international dealers. ARPD is for dealers billed directly.

TAM – Total Addressable Market or the number of dealers, service locations or service providers.

ARPD– Average Recurring Revenue per dealer, service locations or service providers. Number for FY16Q4 annualized.

$27.0

$30.9

$36.5

$47.7 $48.2

$0.0

$10.0

$20.0

$30.0

$40.0

$50.0

FY13 FY14 FY15 FY16 TTM

Mill

ion

s

FY = Fiscal Year Ending July 31

Total Revenue

3 - 5 Year CAGR: 16 - 17%

REVENUE GROWTH

TARGET OPERATING MODEL

FY15 Act. FY16 Act.3 Years

FY19

5 Years

FY21

Sales $40M $47.7M ≅ $75M ≅ $100M

Growth CAGR 16.5% 16.5%

Adj. EBITDA % 16.3% 17.8% 18% - 22% 20% - 24%

Adj. EBITDA $ $6.6M $8.5M $14M - $17M $20M - $24M

• Scale

• Efficiencies

• Product Mix

FINANCIAL OVERVIEW

Bill Nurthen, CFO

MOST RECENT QUARTER HIGHLIGHTS¹

1 as of and for the quarter ending October 31, 2016

² YoY for the quarter ending October 31, 2016

³ Customer Acquisition Costs

10 years of Positive Adjusted EBITDA & Operating Cash Flows

• Total Revenue $12.3M

• 93.7% Recurring Revenue

• 81.3% Gross Margin

• Dealer Sales Bookings Up 17.6%²

• Operating Cash Flow of $1.8M

• Total CAC³ ‐ 14.6 months

• Adjusted EBITDA Margin of 16.4%

Mill

ions

Quarterly Recurring Revenue (QRR)

FY15

$5.0

$6.0

$7.0

$8.0

$9.0

$10.0

$11.0

$12.0

Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1

FY16 FY17

Mill

ions

FY = For the fiscal year ended July 31

Recurring Revenue Total Revenue

5-yr Total Company Recurring Revenue Growth CAGR = 20.3%

$30.1

$40.4

$33.0

REVENUE GROWTH

83.2%89.7%

93.6%

90.2%

$47.7

92.1%

$0.0

$10.0

$20.0

$30.0

$40.0

$50.0

$60.0

FY13 FY14 FY15 FY16 TTM

$30.1$33.0

$40.4

$47.7

89.7% 93.6% 90.2% 92.1%

$48.2

92.7%

ADJUSTED EBITDA & CASH FLOW

$3.8

$4.4

$6.6

$8.5 $8.5

$2.4 $2.4

$6.3

$7.7 $7.8

($0.1) ($0.0)

$4.2 $4.9 $4.8

-$1.0

$0.0

$1.0

$2.0

$3.0

$4.0

$5.0

$6.0

$7.0

$8.0

$9.0

FY13 FY14 FY15 FY16 TTM

Adjusted EBITDA Operating Cash Flow Free Cash Flow

12.7% 13.4% 16.3% 17.8%

FY = For the fiscal year ended July 31

Free Cash Flow = cash flow from operations less capital expenditures and capitalized software development

Mill

ion

s

17.6%

BALANCE SHEET HIGHLIGHTS¹

FY17 Q1

Cash and Investments: $5.6M

Deferred Tax Assets² $4.0M

Total Debt and Lease Obligations: $8.6M

Shares Outstanding: 17.4M

Stock Price³: $5.45

Market Cap.: $95.1M

Enterprise Value: $98.1M

TTM Enterprise Value/Adjusted EBITDA: 11.6x

TTM Enterprise Value/Revenues: 2.0x

¹ As of and for the quarter ending October 31, 2016

² Includes Federal NOL Carryforwards of $2.2M

³As of Market Close 12/13/16

COMPANY OVERVIEW

Roy W. Olivier, President & CEO

SUMMARY

• We have significantly increased the size of our addressable market opportunity

• We have a successful track record completing acquisitions

• We have a successful track record executing operationally

• We are well positioned for continued growth and improved profitability

PEER GROUP ANALYSIS

Software Equity Group Multiples1

ARI2 SaaS Index3 Software Index4 Internet Index5

EV/Revenue 2.0 4.2 – 5.2 2.5 – 3.1 1.9 – 2.3

EV/EBITDA 11.6* 29.6 – 41.2 14.4 – 16.1 18.1 – 19.5

1 Based on the Software Equity Group’s Software Industry Financial Report for Q4 16 last four quarters’ data2 As of Market Close 11/07/16

*Adjusted EBITDA3 65 Public Companies4119 Public Companies5 91 Public Companies

APPENDICES

APPENDIX 1: ACQUISITION HISTORY

YEAR COMPANY PRODUCT VERTICAL

2016 Auction123 Lead Gen/eCommerce Automotive, Powersports, RV, Marine

2015 DCi eCat Automotive Aftermarket

2015 TASCO Corporation DBMS Tire & Wheel

2014 TCSDealer Business Management System

(“DBMS”), Lead Gen/eCommerceTire & 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 POWERCOM-2000 eCat Outdoor Power

1997 Empart Technologies eCat RV

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

3 Sales

Channels• OEM Sales

• Dealer Inside Sales

• International Sales

100Over

Countries Served

2 Geographic

MarketsAmericas & EMEA

Headquarters Milwaukee, WI

Leiden, The Netherlands

415Employees

APPENDIX 2: LOCATIONS

eCatalog Installs

Website Installs

New Delhi, India

APPENDIX 3: BENEFICIAL OWNERSHIP¹

Amount of Beneficial Ownership1

Percent Ownership

Wellington Management Company (2) 1,531,300 8.78%

Cowen Prime Services, LLC (3) 1,259,200 7.22%

Michael D. Sifen, Inc. (4) 1,205,128 6.91%

12 West Capital Management, LP (5) 1,020,000 5.85%

Park City Capital, LLC (5) 1,000,000 5.73%

All affiliates as a group 6,015,628 34.48%

(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 warrants exercisable within 60 days of October 28, 2016.

(2) Ownership information is provided as of December 31, 2014 based upon Schedule 13G amendment filed on February 12, 2015. Includes 250,000 shares acquired in connection with the May 7, 2015 equity offering.

(3) Ownership information is provided as of the Schedule 13G filed December 31, 2015.

(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 of October 7, 2016 based upon Amendment No. 2 to Schedule 13D filed on October 7, 2016 on behalf of Park City Capital, LLC (“Park City Capital”), Park City Capital Offshore Master, Ltd. (“Park City

Master”) and Michael J. Fox. According to the amended Schedule 13D, each of the parties beneficially own in the aggregate 1,000,000 shares of common stock, and Park City Master holds, and has the shared power to direct the voting and

disposition of such shares. Neither Park City Capital nor Mr. Fox directly holds any of such shares.

APPENDIX 4: INSIDER OWNERSHIP¹

Name of Officer / Director Amount of Direct Beneficial Ownership Percent Ownership

Roy W. Olivier (2)(3) – President & CEO 888,946 4.99%

William A. Nurthen (3) – Chief Financial Officer 189,806 *

Robert A. Ostermann – Chief Technology Officer 181,567 *

Chad J. Cooper – Director 165,484 *

William H. Luden, III – Director 114,822 *

P. Lee Poseidon – Director 113,233 *

William C. Mortimore – Director 110,909 *

Robert Y. Newell, IV - Director 96,164 *

All current executive officers and directors as a group 1,860,931 10.30%

* Denotes less than 1%

(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 October 28, 2016.

(2) Mr. Olivier’s total includes 155,200 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.

(3) Management team granted 110,000 shares of performance based restricted stock that vests at $6, $7, $8 & $9.

APPENDIX 5: COMPETITIVE LANDSCAPE

eCatalogs

Lead Gen +

eCommerce Websites

Business Management

Digital Marketing

APPENDIX 6: MANAGEMENT TEAM

Roy W. Olivier President & CEO

Rob A. Ostermann Chief Technology Officer

Bill Nurthen Chief Financial Officer

Brad Smith V.P. Product Management

Management & Insiders own 10.30%

Robert JonesV.P. of Sales

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 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.

*Long-term equity bonus plan aligned with Shareholder interests. Management team granted restricted stock that vests at $6, $7, $8 & $9