BOS's Subsidiary, Odem Technologies, Has Entered Into a New Agreement With Positronic Industries for the Sale of Electronic Components and Has Expanded Its Existing Agreement With Sensata Technologies Inc.

RISHON LE'ZION, Israel -- B.O.S. Better Online Solutions Ltd. ("BOS" or the "Company") (NASDAQ:BOSC)(TASE:BOSC), announced today that its subsidiary, Odem Technologies 1992 Ltd. ("Odem"), has signed an agreement with Positronic Industries, Inc. for the supply of electronic components to the aviation and telecom markets in Israel.

In addition, Odem's appointment as a non-exclusive sales representative of Sensata Technologies Inc. ("STI", previously Texas Instruments Sensors & Controls) has been expanded to include the territories of Turkey, Greece and Asia. Odem has been serving as STI's non-exclusive sales representative to the Aerospace and Military industries in Israel for approximately 15 years.

BOS' management estimates that the new agreement entered into with Positronic Industries and the expansion of the scope of the agreement with STI will increase the Company's sales in the next 12 months by an aggregate of approximately $1 million.

Avidan Zelicovsky, Odem's CEO and Head of BOS's RFID Division commented: "We are pleased with Positronic's and Sensata's choice of Odem. These developments demonstrate the continued momentum we are experiencing in our electronic components division. The expansion of the Sensata agreement is an important milestone in our penetration into new non-Israeli markets, and opens significant long-term growth opportunities for us."

Shmuel Koren, BOS's President & CEO, said "BOS continues to strengthen its electronic components business unit. The expansion of the STI agreement is a result of our focus on developing our international presence in this industry. We are looking forward to developing and further enhancing long term relationships with Positronic Industries and with Sensata Technologies."

About BOS

B.O.S Better Online Solutions Ltd. ("BOS") was established in 1990. Through its wholly owned subsidiaries, BOS's activities are focused on two segments:

Supply-Chain Solutions segment, based on Odem Electronic Technologies 1992 Ltd., providing solutions in the RFID, semiconductors, electronic components, CCD, imaging, networking, telecom and automation fields.

Software Solutions segment, with products marketed under the BOSaNOVA brand name. These products deliver instant and transparent connectivity from IBM iSeries computers to personal computers, thin clients and browsers.

BOS is traded on NASDAQ (BOSC) and on the Tel-Aviv Stock Exchange (BOSC). BOS's website address is www.boscorporate.com.

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 a few major customers, the uncertainty of our 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; 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.