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Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
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<SEC-DOCUMENT>0001178913-06-002200.txt : 20070119
<SEC-HEADER>0001178913-06-002200.hdr.sgml : 20070119
<ACCEPTANCE-DATETIME>20061127103759
<PRIVATE-TO-PUBLIC>
ACCESSION NUMBER:		0001178913-06-002200
CONFORMED SUBMISSION TYPE:	CORRESP
PUBLIC DOCUMENT COUNT:		1
FILED AS OF DATE:		20061127

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			BOS BETTER ONLINE SOLUTIONS LTD
		CENTRAL INDEX KEY:			0001005516
		STANDARD INDUSTRIAL CLASSIFICATION:	COMPUTER COMMUNICATIONS EQUIPMENT [3576]
		IRS NUMBER:				0000000
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		CORRESP

	BUSINESS ADDRESS:	
		STREET 1:		100 BOS RD
		CITY:			TERADION ISRAEL
		STATE:			L3
		ZIP:			00000

	MAIL ADDRESS:	
		STREET 1:		TERADION INDUSTRIAL PARK
		CITY:			BEIT RABIN
		STATE:			L3
		ZIP:			20179
</SEC-HEADER>
<DOCUMENT>
<TYPE>CORRESP
<SEQUENCE>1
<FILENAME>filename1.htm
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     <!-- Control Number: 63155                                                            -->
     <!-- Rev Number:     1                                                                -->
     <!-- Client Name:    BOS better online solutions Ltd                                  -->
     <!-- Project Name:   Corresp                                                          -->
     <!-- Firm Name:      Zadok-Keinan Ltd                                                 -->
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<P ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>November 27, 2006 </FONT></P>

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<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><U>VIA EDGAR</U> </FONT> </P>

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<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Securities and Exchange
Commission<BR>450 Fifth Street, N.W. </FONT><BR>
<FONT FACE="Times New Roman, Times, Serif" SIZE=2>Washington, D.C. 20549 </FONT></P>


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<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Attn:  </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Barbara
C. Jacobs     <BR>     Assistant Director          <BR>Mail Stop 4561</FONT></TD>
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<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>         Re: </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE="2">B.O.S.
Better Online Solutions Ltd. <BR> Amended Registration Statement on Form F-3
<BR> File No. 333-137153 <BR>Filed on October 30, 2006
<BR> Form 20-F/A <BR>File No. 001-14184
<BR> <U>Filed on October 30, 2006</U> </FONT> </TD>
</TR>
</TABLE>
<BR>


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<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Ladies and Gentlemen: </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>We have set forth below the
Company&#146;s proposed response to the Staff&#146;s comment letter dated November 9, 2006
with respect to the Registration Statement on Form F-3. The Staff&#146;s comments have
been reproduced (in bold) below and are immediately followed by the Company&#146;s
responses thereto. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>In addition, please be advised that
Mr. Shmuel Koren has replaced Mr. Adiv Baruch as the Company&#146;s President and Chief Executive
Officer. Please direct future correspondence concerning this matter to the attention of
Mr. Koren. </FONT></P>

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<font size=2></font></p>
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<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><U>Form 20-F for the year
ended December 31, 2005</U> </FONT> </H1>

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<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><U>Item 4: Information on the
Company. page 16</U> </FONT> </H1>

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<TD WIDTH=5%>&nbsp;</TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
<B>We
refer you to prior comment 4. In this regard, we note your amended disclosure regarding
the long term sales </B> <B>agreement with Israel Aircraft Industries Ltd. on pages 12 and
13. Please ensure that your disclosure is materially </B> <B>complete. For example, but
without limitation, disclosure regarding the &#147;Special Business Provisions&#148; of
the </B> <B>agreement, such as the provision &#147;that the prices will not exceed the
prices Seller grants to its most favored </B> <B>customers for the same Parts&#148;
appears to be material to investors. Please revise or advise. Also, although we note </B>
<B>that your 20-F has been amended to include the sales agreement with Israel Aircraft
Industries, it does not appear </B> <B>that the entire agreement has been filed. For
example, we note the reference to Appendix A throughout the </B> <B>agreement. Please
revise your Form 20-F to include the complete agreement, including all appendices, as an
exhibit </B> <B>or</B> <B>otherwise advise.</B> </FONT></TD>
</TR>
</TABLE>
<BR>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          <I>Description of the IAI contract in the Form 20-F</I> </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We
have attached hereto as <U>Exhibit A</U> a proposed revision to the description of the IAI
contract in the Form 20-F, which we believe includes a summary of all of the material
terms of this contract. </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          <I>Filing of exhibits and appendices</I> </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
staff has requested that the Company file all appendices and exhibits to the IAI contract
as exhibits to the Form 20-F. The IAI contract has one appendix &#150; Appendix A, which
is a list of the products subject to the contract, together with the prices of such
products. In addition, the terms of IAI&#146;s Standard Purchase Order Terms and
Conditions (the &#147;Standard Terms&#148;) are incorporated by reference into the
contract. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Company proposes to file the  Standard Terms as an exhibit, but for the reasons set
forth below respectfully requests that it not be required to file Appendix A. The Standard
Terms are attached hereto as <U>Exhibit B</U>. </FONT></P>

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<TD WIDTH=5%>&nbsp;</TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
<U>The
IAI contract is an ordinary course business agreement that does not account for a
material amount of the Company&#146;s sales.</U> </FONT></TD>
</TR>
</TABLE>
<BR>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Company recognizes that if the IAI contract falls within one of the categories of
agreements with respect to which disclosure is required under Instruction 4 to Item 19 of
Form 20-F, it would be required to file all appendices and exhibits thereto, but believes
that this contract does not fall within this category because: </FONT></P>

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<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><FONT size="2" face="Wingdings 2">&#151;</font> </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>it
is an ordinary course business contract</FONT></TD>
</TR>
</TABLE>
<BR>

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<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><FONT size="2" face="Wingdings 2">&#151;</font> </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>that
does not account for a major part of the Company's sales, and</FONT></TD>
</TR>
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<BR>

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<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><FONT size="2" face="Wingdings 2">&#151;</font> </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>the
Company's business is not substantially depending on this contract.</FONT></TD>
</TR>
</TABLE>
<BR>

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<font size=2>2</font></p>
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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
IAI contract is an ordinary course business contract because it involves the sale of
standard electronic components by Odem, which is part of the normal business activities of
this company. The IAI contract covers parts to be supplied by Odem to IAI for the
construction of certain specific models of business jets, which IAI has contracted to
build on behalf of certain customers. The components that Odem supplies pursuant to the
IAI contract are the same types of components that Odem supplies to IAI for use in the
manufacture of other types of airplanes pursuant to individual purchase orders that are
not subject to the contract. The reason that Odem entered into a contract with IAI
covering the parts to be supplied for the manufacture of these particular models of planes
was to comply with a requirement of IAI&#146;s customer for these planes that IAI&#146;s
parts suppliers be subject to standardized supply agreements. Although the majority of
Odem&#146;s sales are made pursuant to individual purchase orders, it has entered into
supply contracts with other customers from time to time in the ordinary course of its
business. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As
indicated below, sales under the IAI contract represent a small percentage of the
Company&#146;s overall sales to IAI. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
2005 and the six months ended June 30, 2006, BOS had total revenues of approximately $27
million and $10 million, respectively, of which approximately $4.1 million and $2 million,
respectively (or 15.3% and 20%) represented sales to IAI by Odem. Of the sales to IAI in
2005 and the first half of 2006, approximately $600 thousand and $94 thousand,
respectively, (representing 2% and 0.9%, respectively, of BOS&#146;s total revenues for
these periods), were made pursuant to the IAI contract. The balance of the Company&#146;s
sales to IAI during these periods were made under individual purchase orders that were not
subject to or governed by the IAI contract. These purchase orders were made pursuant to
the Standard Terms which are not governed by any master contract. </FONT></P>

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<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
<U>The
information set forth on Appendix A is not necessary for an Investor&#146;s understanding
of the business of the Company.</U> </FONT></TD>
</TR>
</TABLE>
<BR>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Appendix
A includes a list of more than 260 individual electronic components that are to be
supplied under the IAI contract and the prices of such components, which, except for a few
components (the most expensive of which is priced below $800), are below $100. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Because
of the large number of individual components listed on Appendix A and the relatively small
individual purchase prices of each component, the Company does not believe that the
information included on Appendix A would be material for an investor&#146;s understanding
of the Company&#146;s business or financial results. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;However,
the disclosure of this information could result in significant competitive harm to the
Company as it would allow the Company&#146;s competitors to seek to undercut the
Company&#146;s price structure. It could also allow the Company&#146;s other customers to
seek to negotiate more favorable pricing terms with the Company. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If
you have any questions concerning the responses, please do not hesitate to call me at
212-841-0700. </FONT></P>

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<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=50%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Cordially,<BR><BR>Brian Brodrick</FONT></TD>
</TR>
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