<DOCUMENT>
<TYPE>EX-99.III
<SEQUENCE>5
<FILENAME>c27765_ex99-iii.txt
<TEXT>

               BOS BETTER ON-LINE SOLUTIONS LTD. AND SUBSIDIARIES

           PRO FORMA CONDENSED CONSOLIDATED BALANCE SHEET (UNAUDITED)

                                FEBRUARY 28, 2003
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       The following unaudited pro forma condensed consolidated balance sheet of
BOS Better On-Line Solutions Ltd. ("BOS"), as of February 28, 2003, gives effect
to the following transactions as if they had occurred as of February 28, 2003:

       (i)    The  issuance by BOS as of March 30, 2003,  of 2,529,100  ordinary
              shares  of BOS to  Catalyst  Investment  L.P.  ("Catalyst")  for a
              purchase  price of  $1,755,000  in exchange for 191,548  shares of
              Class C  preferred  stock of Surf  Communications  Ltd.  ("Surf"),
              together with the right to acquire  certain  additional  shares of
              Class C preferred  stock and share purchase  warrants of Surf (the
              "Catalyst Transaction"); and

       (ii)   Arrangements entered into by BOS's subsidiary, Pacific Information
              Systems Ltd.  ("PacInfo"),  with certain of PacInfo's creditors to
              compromise the amounts owed to such  creditors in connection  with
              the winding up of PacInfo.

       The information  presented is derived from, should be read in conjunction
with, and is qualified in its entirety by reference to the historical  unaudited
condensed  balance  sheet of BOS.

       The pro forma adjustments are based upon currently available  information
and certain estimates and assumptions described below, and therefore, the actual
adjustments  may  differ  from the  unaudited  pro forma  adjustments.  However,
management  believes  that  the  assumptions  provide  a  reasonable  basis  for
representing the significant  effects of the transactions and that the unaudited
pro forma  adjustments  give  appropriate  effect to those  assumptions  and are
properly applied in the unaudited pro forma condensed balance sheet.

---------------------------------------- --------- ----------- ------- ---------
             BALANCE SHEET               UNAUDITED                     PRO-FORMA
               (000 USD)                 --------- ----------- ------- ---------
                                          28.02.03 ADJUSTMENTS   NOTE   28.02.03
                                         --------- ----------- ------- ---------
---------------------------------------- --------- ----------- ------- ---------
Cash and cash equivalents                    4,750                         4,750
---------------------------------------- --------- ----------- ------- ---------
Trade accounts receivable                    1,686                         1,686
---------------------------------------- --------- ----------- ------- ---------
Other receivables                              595        (175)  a           420
---------------------------------------- --------- ----------- ------- ---------
Inventories                                  1,017                         1,017
---------------------------------------- --------- ----------- ------- ---------
                   TOTAL CURRENT ASSETS      8,048        (175)  a         7,873
---------------------------------------- --------- ----------- ------- ---------
Marketable Securities                        3,112                         3,112
---------------------------------------- --------- ----------- ------- ---------
Investments                                  2,042       1,843   b         3,885
---------------------------------------- --------- ----------- ------- ---------
Property and equipment, net                    920                           920
---------------------------------------- --------- ----------- ------- ---------
Other assets                                   520                           520
---------------------------------------- --------- ----------- ------- ---------
                           TOTAL ASSETS     14,642       1,668            16,310
---------------------------------------- --------- ----------- ------- ---------
Accounts Payable & Accrued Liabilities       3,422                         3,422
---------------------------------------- --------- ----------- ------- ---------
Discontinued Net                             3,127      (1,490)  c         1,637
---------------------------------------- --------- ----------- ------- ---------
Long Term Debt                                 216                           216
---------------------------------------- --------- ----------- ------- ---------
Total Shareholder's Equity                   7,877       3,158   d,e      11,035
---------------------------------------- --------- ----------- ------- ---------
                  TOTAL LIABILITIES AND
                   SHAREHOLDERS' EQUITY     14,642       1,668            16,310
---------------------------------------- --------- ----------- ------- ---------

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<PAGE>


NOTES TO BALANCE SHEET:

a - Decrease in Other Receivables :

              Represents $175,000 in expenses that were incurred by BOS in
       connection with the Catalyst Transaction that were classified under Other
       Receivables pending the closing of the Catalyst Transaction. One-half of
       these expenses will be added to BOS's cost of this investment and
       one-half will reduce shareholders equity.

b - Increase in Investments

              Represents the investment that BOS made in Surf, plus one-half of
       the Transaction expenses described in note a. above. The closing date for
       this Transaction was March 30, 2003.

c - Decrease in Discontinued liabilities, net

              Represents the decrease in BOS's share of the liabilities of its
       subsidiary PacInfo in connection with arrangements entered into by
       PacInfo with certain of its creditors from March 1, 2003 through April 9,
       2003 to compromise amounts owed to these creditors by PacInfo.

d - Increase in Equity

              Represents the increase in BOS's equity as a result of the net
       effect of the following:

              (i)    Issuance of shares ($1,755,000), minus the relative portion
                     of the expenses described in note a. ($88,000).

              (ii)   Gain from reduction of net liabilities in the discontinued
                     segment- $1,490,000.

e - March estimated loss

              The estimated loss of approximately $400,000 for March is not
       included in the adjustments and in the Pro Forma Balance Sheet.

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                                       3

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</DOCUMENT>
