We present results on dielectron production in Ar+KCl collisions at 1.76A GeV. For the first time $omega$ mesons could be reconstructed in a heavy-ion reaction at a bombarding energy which is well below the production threshold in free nucleon-nucleon collisions. The omega multiplicity has been extracted and compared to the yields of other particles, in particular of the phi meson. At intermediate e+e- invariant masses, we find a strong enhancement of the pair yield over a reference spectrum from elementary nucleon-nucleon reactions suggesting the onset of non-trivial effects of the nuclear medium. Transverse-mass spectra and angular distributions have been reconstructed in three invariant mass bins. In the former unexpectedly large slopes are found for high-mass pairs. The latter, in particular the helicity-angle distributions, are largely consistent with expectations for a pair cocktail dominated at intermediate masses by delta Dalitz decays.
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