B.O.S. Better Online Solutions Ltd. ("BOS") (Nasdaq:BOSC) today
announced that it has sold a mobile and RFID livestock identification
system for a project in an African country.

The first stage of the system is expected to be delivered in the fourth
quarter of this year and the company expects it to yield revenues in
the range of a few hundreds of thousands of dollars. Following a
successful implementation of the first stage, the project may be
significantly extended.

The BOS Livestock System, which provides a smooth process for livestock
management, is comprised of hardware and software, including mobile
handheld devices managed by the BOS ID software, RFID tags and readers,
the BOS RFID server and BOS Livestock -- the database for the livestock
records.

BOS has been involved in a number of livestock-related projects,
including the development of an RFID solution for a major Israeli pig
farm and supplying the Israeli Ministry of Agriculture with animal ID
tags for sheep and goats.

"This represents an important RFID project outside of Israel, and
points to BOS' growing reputation as an RFID supplier internationally,"
said Yuval Viner, BOS CEO.

Avidan Zelicovsky, BOS president, added: "We are harvesting the
investment in the livestock system that was developed and sold in
Israel a year ago. In our supply chain division, we continue to invest
efforts to expand business through our Israeli subsidiary, which has
recently begun representing new electronic manufacturers in the display
industry such as Wintek Corporation and Fema Electronics Corporation.
This will enable us to add value to our customers' design processes."

In the last three months, BOS' US subsidiary has experienced a
reduction in orders from one of its main customers.

Mr. Zelicovsky commented: "We are examining the activities of our US
subsidiary, Summit, which continues to struggle with the slowdown in
the civil aerospace industry, and with the resulting decreased working
capital. Summit's bank credit line (non recourse towards BOS) will
expire at the end of October this year and we will be entering into a
discussion with the bank for a renewal. We are committed to the
long-term profitability of BOS and are examining various alternatives
in order to obtain this goal."

About BOS

B.O.S. Better Online Solutions Ltd. (Nasdaq:BOSC) is a leading provider
of RFID and Supply Chain solutions to global enterprises. BOS' RFID and
supply chain offerings are helping over 2,000 customers worldwide
improve the efficiency of enterprise logistics and organizational
monitoring and control. BOS' RFID and mobile division offers both
turnkey integration services as well as stand-alone products, including
best-of-breed RFID and AIDC hardware and communications equipment, BOS
middleware, and industry-specific software applications. The company's
supply chain divisions provide RFID and electronic components
consolidation services to the aerospace, defense, medical,
telecommunications industries as well as to enterprise customers
worldwide.

For more information, please visit: www.boscorporate.com

Safe Harbor Regarding Forward-Looking Statements

Certain statements contained in this press release may constitute
"forward-looking statements." The forward-looking statements contained
herein reflect management's current views with respect to future events
and financial performance. These forward-looking statements are subject
to certain risks and uncertainties that could cause the actual results
to differ materially from those in the forward-looking statements, all
of which are difficult to predict and many of which are beyond the
control of BOS. These risk factors and uncertainties include, amongst
others, the dependency of sales being generated from one or few major
customers, the uncertainty of BOS being able to maintain current gross
profit margins, inability to keep up or ahead of technology and to
succeed in a highly competitive industry, inability to maintain
marketing and distribution arrangements and to expand our overseas
markets, uncertainty with respect to the prospects of legal claims
against BOS, the effect of exchange rate fluctuations, general
worldwide economic conditions and continued availability of financing
for working capital purposes and to refinance outstanding indebtedness;
and additional risks and uncertainties detailed in BOS's periodic
reports and registration statements filed with the U.S. Securities and
Exchange Commission. BOS undertakes no obligation to publicly update or
revise any such forward-looking statements to reflect any change in its
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.


CONTACT:  B.O.S. Better Online Solutions Ltd.
          Eyal Cohen, Chief Financial Officer 
          +972-542525925