-----BEGIN PRIVACY-ENHANCED MESSAGE-----
Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
Originator-Key-Asymmetric:
 MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen
 TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB
MIC-Info: RSA-MD5,RSA,
 Ovh3gCbiwOxsI6mutMcn/5k0J/4j9VAvh5bzmgwaBl582xoY7+FAhJKbKtVK7GcR
 hDOBpG/O+SUB48kXRVLfGQ==

<SEC-DOCUMENT>0001178913-08-001690.txt : 20080630
<SEC-HEADER>0001178913-08-001690.hdr.sgml : 20080630
<ACCEPTANCE-DATETIME>20080630140121
ACCESSION NUMBER:		0001178913-08-001690
CONFORMED SUBMISSION TYPE:	F-3
PUBLIC DOCUMENT COUNT:		9
FILED AS OF DATE:		20080630
DATE AS OF CHANGE:		20080630

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			BOS BETTER ONLINE SOLUTIONS LTD
		CENTRAL INDEX KEY:			0001005516
		STANDARD INDUSTRIAL CLASSIFICATION:	COMPUTER COMMUNICATIONS EQUIPMENT [3576]
		IRS NUMBER:				000000000
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		F-3
		SEC ACT:		1933 Act
		SEC FILE NUMBER:	333-152020
		FILM NUMBER:		08925115

	BUSINESS ADDRESS:	
		STREET 1:		20 FREIMAN STREET
		CITY:			RISHON LEZION
		STATE:			L3
		ZIP:			75100
		BUSINESS PHONE:		011-972-3-954-1000

	MAIL ADDRESS:	
		STREET 1:		20 FREIMAN STREET
		CITY:			RISHON LEZION
		STATE:			L3
		ZIP:			75100
</SEC-HEADER>
<DOCUMENT>
<TYPE>F-3
<SEQUENCE>1
<FILENAME>zk85456.htm
<TEXT>
<HTML>
<HEAD>
     <!-- Created by EDGAR Ease Plus (EDGAR Ease+) -->
     <!-- Project:        F:\EDGAR Filing\BOS better online solutions Ltd\85456\a85456.eep -->
     <!-- Control Number: 85456                                                            -->
     <!-- Rev Number:     1                                                                -->
     <!-- Client Name:    BOS better online solutions Ltd                                  -->
     <!-- Project Name:   F-3                                                              -->
     <!-- Firm Name:      Zadok-Keinan Ltd                                                 -->
     <TITLE>F-3</TITLE>
</HEAD>
<BODY>

<TABLE ALIGN=CENTER BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="100%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>As filed
 with the Securities and Exchange Commission on June 30, 2008 </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P ALIGN=RIGHT><FONT SIZE=2>Registration No. 333-__________ </FONT></P>
</TD>
</TR>
</TABLE>
<BR>
<HR WIDTH="100%" SIZE="4" noshade style="margin-top: -5px">
<HR WIDTH="100%" SIZE="1" noshade style="margin-top: -10px">


<TABLE ALIGN=CENTER BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="100%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=4><B>UNITED STATES</B></FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=4><B>SECURITIES AND EXCHANGE COMMISSION</B></FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=2>Washington,
 D.C. 20549</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="30%" NOSHADE COLOR=GRAY ALIGN=CENTER>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=4><B>FORM F-3</B></FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=3>REGISTRATION
 STATEMENT<BR>
 UNDER THE SECURITIES ACT OF 1933</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="30%" NOSHADE COLOR=GRAY ALIGN=CENTER>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=5><B>B.O.S BETTER ONLINE SOLUTIONS LTD.</B></FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=2><I>(Exact name of Registrant as specified in its charter)</I></FONT></P>
</TD>
</TR>
</TABLE>

<BR>

<TABLE ALIGN=CENTER BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="45%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="10%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="45%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=2><B>Israel</B></FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=2><B>Not Applicable</B></FONT></P>
</TD>
</TR>

<TR>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>

<TR>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=2><I>(State or other jurisdiction of<BR> incorporation or organization)</I></FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=2><I>(I.R.S. Employer<BR>
 Identification No.)</I></FONT></P>
</TD>
</TR>
</TABLE>

<div ALIGN=CENTER><FONT SIZE=2>20 Freiman Street,<BR>
Rishon LeZion, 75100, Israel<BR>
(+972) 3-954-1000<BR>
<I>(Address and Telephone Number of
Registrant&#146;s principal executive offices)</I></FONT></div>

<P ALIGN=CENTER><FONT SIZE=2>Summit Radio Corp<BR>
1008 Teaneck Road, Teaneck,<BR>
New Jersey 07666<BR>
Tel: 201-837-3644<BR>
Facsimile: 201-833-1164<BR>
<I>(Name, address and telephone number of agent
for service)</I></FONT></P>



<TABLE ALIGN=CENTER BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="45%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="10%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="45%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD COLSPAN="3" VALIGN=TOP>
<HR SIZE=1 WIDTH="30%" NOSHADE COLOR=GRAY ALIGN=CENTER>
</TD>
</TR>
<TR>
<TD COLSPAN="3" VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=2>Copies
 To:</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=2><B>Brian Brodrick, Esq.</B></FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=2><B>Shlomo Landress, Adv.</B></FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=2><B>Phillips Nizer LLP</B></FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=2><B>Amit, Pollak, Matalon &amp; Co.</B></FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=2><B>666 Fifth Avenue</B></FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=2><B>NITSBA Tower, 17 Yitzhak Sadeh Street</B></FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=2><B>New York, New York 10103</B></FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=2><B>Tel Aviv 67775, Israel</B></FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=2><B>(212) 841-0700</B></FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=2><B>972-3-568-9000</B></FONT></P>
</TD>
</TR>
</TABLE>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Approximate date of commencement of proposed sale to
the public</B>: From time to time after this registration statement
becomes effective. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If
the only securities being registered on this Form are being offered pursuant to
dividend or interest reinvestment plans, please check the following box. <FONT FACE=WINGDINGS>o</FONT></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If
any of the securities being registered on this Form are to be offered on a
delayed or continuous basis pursuant to Rule 415 under the Securities Act of
1933, please check the following box. <FONT FACE=WINGDINGS>x</FONT></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If
this Form is filed to register additional securities for an offering pursuant
to Rule 462(b) under the Securities Act, please check the following box and
list the Securities Act registration statement number of the earlier effective
registration statement for the same offering. <FONT FACE=WINGDINGS>o</FONT></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If
this Form is a post-effective amendment filed pursuant to Rule 462(c) under the
Securities Act, check the following box and list the Securities Act
registration statement number of the earlier effective registration statement
for the same offering. <FONT FACE=WINGDINGS>o</FONT></FONT></P>

<HR WIDTH="100%" size="1" noshade style="margin-top: -2px">
<HR WIDTH="100%" size="4" noshade style="margin-top: -10px">
<PAGE>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If
this Form is a registration statement pursuant to General Instruction I.C. or a
post-effective amendment thereto that shall become effective upon filing with
the Commission pursuant to Rule 462(e) under the Securities Act, check the
following box. <FONT FACE=WINGDINGS>o</FONT></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If
this Form is a post-effective amendment to a registration statement filed
pursuant to General Instruction I.C. filed to register additional securities or
additional classes of securities pursuant to Rule 413(b) under the Securities
Act, check the following box. <FONT FACE=WINGDINGS>o</FONT></FONT></P>

<HR SIZE=1 WIDTH="30%" NOSHADE COLOR=GRAY ALIGN=CENTER>

<P ALIGN=CENTER><FONT SIZE=2><B>CALCULATION OF REGISTRATION FEE</B></FONT></P>

<TABLE ALIGN=CENTER BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="34%" VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD WIDTH="2%" VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD WIDTH="1%" VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD WIDTH="8%" VALIGN=BOTTOM>
<P ALIGN=RIGHT>&nbsp;</P>
</TD>
<TD WIDTH="4%" VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD WIDTH="1%" VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD WIDTH="9%" VALIGN=BOTTOM>
<P ALIGN=RIGHT>&nbsp;</P>
</TD>
<TD WIDTH="4%" VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD WIDTH="1%" VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD WIDTH="9%" VALIGN=BOTTOM>
<P ALIGN=RIGHT>&nbsp;</P>
</TD>
<TD WIDTH="5%" VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD WIDTH="1%" VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD WIDTH="9%" VALIGN=BOTTOM>
<P ALIGN=RIGHT>&nbsp;</P>
</TD>
<TD WIDTH="3%" VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1><B>Title of Each Class<BR>
 of Securities to be Registered</B></FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1><B>Amount to be<BR>
 Registered(2)</B></FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1><B>Proposed<BR>
 Maximum<BR>
 Offering Price<BR>
 Per Share(3)</B></FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1><B>Proposed<BR>
 Maximum<BR>
 Aggregate<BR>
 Offering Price</B></FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1><B>Amount of<BR>
 Registration<BR>
 Fee</B></FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM BGCOLOR="#CCEEFF">
<P><FONT SIZE=2><B>Primary
 Offering:</B></FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#CCEEFF">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#CCEEFF">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#CCEEFF">
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#CCEEFF">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#CCEEFF">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#CCEEFF">
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#CCEEFF">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#CCEEFF">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#CCEEFF">
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#CCEEFF">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#CCEEFF">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#CCEEFF">
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#CCEEFF">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT'><FONT  SIZE=2>Ordinary Shares, nominal value NIS 4.00 per share
(1)</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM BGCOLOR="#CCEEFF">
<P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT'><FONT  SIZE=2>Warrants (1)</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#CCEEFF">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#CCEEFF">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#CCEEFF">
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#CCEEFF">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#CCEEFF">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#CCEEFF">
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#CCEEFF">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#CCEEFF">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#CCEEFF">
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#CCEEFF">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#CCEEFF">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#CCEEFF">
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#CCEEFF">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT'><FONT  SIZE=2>Units (1)</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM BGCOLOR="#CCEEFF">
<P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:25.9PT;TEXT-INDENT:-8.65PT'><FONT  SIZE=2>Subtotal</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#CCEEFF">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#CCEEFF">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#CCEEFF">
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#CCEEFF">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#CCEEFF">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#CCEEFF">
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#CCEEFF">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#CCEEFF">
<P><FONT SIZE=2>$</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#CCEEFF">
<P ALIGN=RIGHT><FONT SIZE=2>6,250,000</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#CCEEFF">
<P><FONT SIZE=2>(4)</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#CCEEFF">
<P><FONT SIZE=2>$</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#CCEEFF">
<P ALIGN=RIGHT><FONT SIZE=2>245.63</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#CCEEFF">
<P><FONT SIZE=2>(4)</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT  SIZE=2><B>Secondary Offering:</B></FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM BGCOLOR="#CCEEFF">
<P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT'><FONT  SIZE=2>Ordinary Shares, nominal value NIS 4.00 per
share</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#CCEEFF">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=BOTTOM BGCOLOR="#CCEEFF">
<P ALIGN=RIGHT><FONT SIZE=2>1,194,982</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#CCEEFF">
<P><FONT SIZE=2>(5)</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#CCEEFF">
<P><FONT SIZE=2>$</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#CCEEFF">
<P ALIGN=RIGHT><FONT SIZE=2>1.47</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#CCEEFF">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#CCEEFF">
<P><FONT SIZE=2>$</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#CCEEFF">
<P ALIGN=RIGHT><FONT SIZE=2>1,756,623</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#CCEEFF">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#CCEEFF">
<P><FONT SIZE=2>$</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#CCEEFF">
<P ALIGN=RIGHT><FONT SIZE=2>69.03</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#CCEEFF">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT'><FONT  SIZE=2>Ordinary Shares, nominal value NIS 4.00 per
share</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=2>541,814</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=2>(6)</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=2>$</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=2>2.76</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=2>$</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=2>1,495,407</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=2>$</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=2>58.77</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM BGCOLOR="#CCEEFF">
<P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:34.55PT;TEXT-INDENT:-8.65PT'><FONT  SIZE=2>Total</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#CCEEFF">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#CCEEFF">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#CCEEFF">
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#CCEEFF">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#CCEEFF">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#CCEEFF">
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#CCEEFF">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#CCEEFF">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#CCEEFF">
<P ALIGN=RIGHT><FONT SIZE=2>9,502,030</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#CCEEFF">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#CCEEFF">
<P><FONT SIZE=2>$</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#CCEEFF">
<P ALIGN=RIGHT><FONT SIZE=2>373.43</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#CCEEFF">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
</TABLE>

<BR>

<TABLE ALIGN=CENTER BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="95%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(1)</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>These
 offered securities may be sold separately, together or as units with other
 offered securities. </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(2)</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Such
 indeterminate number or amount of Registrant&#146;s ordinary shares, warrants, or
 units as may, from time to time, be issued at indeterminate prices. In no
 event will the aggregate maximum offering price of all securities issued
 pursuant to this registration statement on behalf of the Registrant exceed
 $6,250,000. In addition, up to 1,736,796 ordinary shares of common stock may
 be sold from time to time pursuant to this registration statement by the
 selling shareholders named herein. Pursuant to Rule 416 of the Securities Act
 of 1933, as amended, this Registration Statement also includes additional
 ordinary shares issuable upon stock splits, stock dividends or similar
 transactions.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(3)</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Estimated
 solely for the purpose of calculating the registration fee in accordance with
 Rule 457(c) under the Securities Act, based upon the average of the high and
 low sales prices of the Registrant&#146;s ordinary shares on the Nasdaq Global
 Market on June 27, 2008. </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(4)</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Pursuant to
 Rule 457(o) under the Securities Act of 1933, which permits the registration
 fee to be calculated on the basis of the maximum offering price of all the
 securities listed, and Instruction IIC of Form F-3, the table does not specify
 by each class information as to the amount to be registered, proposed maximum
 offering price per unit or proposed maximum aggregate offering price. The
 aggregate public offering price of securities sold by the Registrant will not
 exceed $6,250,000 (see Note 2 above).</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(5)</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Represents
 ordinary shares registered for resale by the selling shareholders.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(6)</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Represents
 shares issuable upon exercise of warrants that were issued to the selling
 shareholders. The exercise price under the warrants is $2.76 per ordinary
 share. </FONT></P>
</TD>
</TR>
</TABLE>

<P><FONT SIZE=2><B>The Registrant hereby amends this
Registration Statement on such date or dates as may be necessary to delay its
effective date until the Registrant shall file a further amendment which
specifically states that this Registration Statement shall thereafter become
effective in accordance with Section 8(a) of the Securities Act of 1933 or
until the Registration Statement shall become effective on such date as the
Commission, acting pursuant to said Section 8(a), may determine</B>. </FONT></P>

<P><FONT SIZE=2><B>THE INFORMATION IN THIS PROSPECTUS IS NOT
COMPLETE AND MAY BE CHANGED. THESE SECURITIES MAY NOT BE SOLD UNTIL THE
REGISTRATION STATEMENT FILED WITH THE SECURITIES AND EXCHANGE COMMISSION IS
EFFECTIVE. THIS PROSPECTUS IS NOT AN OFFER TO SELL THESE SECURITIES AND IT IS
NOT SOLICITING AN OFFER TO BUY THESE SECURITIES IN ANY STATE WHERE THE OFFER OR
SALE IS NOT PERMITTED. </B></FONT></P>

<HR WIDTH="100%" size="1" noshade style="margin-top: -2px">
<HR WIDTH="100%" size="4" noshade style="margin-top: -10px">
<PAGE>

<P ALIGN=CENTER><FONT SIZE=2>SUBJECT TO COMPLETION, DATED June 30, 2008</FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>$6,250,000 and 1,736,796 of our Ordinary Shares Offered by Selling Shareholders</FONT></P>
<p ALIGN="LEFT"><FONT SIZE=2>PROSPECTUS</FONT></p>


<P ALIGN=CENTER><FONT SIZE=2><B>B.O.S BETTER ONLINE SOLUTIONS LTD.</B></FONT></P>

<HR SIZE=1 WIDTH="30%" NOSHADE COLOR=GRAY ALIGN=CENTER>

<P><FONT SIZE=2>Through this prospectus, we
may periodically offer:</FONT></P>

<TABLE ALIGN=CENTER BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="95%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(1)</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>our ordinary shares,</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(2)</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>our warrants, and</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(3)</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>our units. </FONT></P>
</TD>
</TR>
</TABLE>

<P><FONT SIZE=2>This prospectus provides you
with a general description of the securities that we may offer. Each time we
sell securities, we will provide a prospectus supplement that will contain
specific information about the terms of the offering. The prospectus supplement
may also add, update or change information contained in this prospectus. You should
read both this prospectus and any prospectus supplement, together with
additional information described below under the headings &#147;Where You Can Find
More Information,&#148; and &#147;Incorporation of Certain Documents by Reference&#148; before
purchasing any of our securities. </FONT></P>

<P><FONT SIZE=2>To the extent there is a
conflict between the information contained in this prospectus and the
prospectus supplement, you should rely on the information in the prospectus
supplement, provided that if any statement in one of these documents is
inconsistent with a statement in another document having a later date, for
example, a document incorporated by reference in this prospectus or any
prospectus supplement, the statement in the document having the later date
modifies or supersedes the earlier statement. </FONT></P>

<P><FONT SIZE=2>In addition, the selling shareholders
identified in this prospectus, may offer to sell up to 1,736,796 ordinary shares purchased
in private placement transactions in December 2007 and in June 2008, including up to
541,814 ordinary shares issuable to the selling shareholders upon the exercise of warrants
that were issued in the December 2007 private placement. </FONT></P>

<P><FONT SIZE=2>BOS is filing the
registration statement of which this prospectus is a part at this time to
fulfill a contractual obligation to do so, which the company undertook at the
time of the private placements. </FONT></P>

<P><FONT SIZE=2>We will not receive any of
the proceeds from the sale of these ordinary shares by the selling shareholders
other than the exercise price payable to us upon the exercise of the warrants
held by the selling shareholders. We have agreed to bear all of the expenses in
connection with the registration and sale of these ordinary shares other than
underwriting discounts and sales commissions. </FONT></P>

<P><FONT SIZE=2>Our ordinary shares are traded on the
Nasdaq Global Market under the symbol &#147;BOSC&#148; and on the Tel-Aviv Stock Exchange
under the symbol &#147;BOSC&#148;. On June 27, 2008, the last reported sale price of our
ordinary shares on the Nasdaq Global Market was $1.47  per share and on the Tel Aviv
Stock Exchange was NIS 5.48 per share. You are urged to obtain current market quotations
for the ordinary shares</FONT></P>

<P><FONT SIZE=2>The securities issued under
this prospectus may be offered directly or through underwriters, agents or
dealers. The names of any underwriters, agents or dealers will be included in a
supplement to this prospectus. </FONT></P>

<HR WIDTH="100%" size="1" noshade style="margin-top: -2px">
<HR WIDTH="100%" size="4" noshade style="margin-top: -10px">
<PAGE>

<P><FONT SIZE=2>You should read both this
prospectus and any prospectus supplement, together with the additional
information described under the heading &#147;Incorporation of Certain Documents by
Reference&#148; before you decide to invest in our ordinary shares. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>INVESTING IN OUR ORDINARY SHARES INVOLVES A HIGH
DEGREE OF RISK. SEE &#147;RISK FACTORS&#148; BEGINNING ON PAGE 5 OF THIS PROSPECTUS TO
READ ABOUT FACTORS YOU SHOULD CONSIDER BEFORE PURCHASING OUR ORDINARY SHARES. </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Neither the Securities and Exchange Commission nor any
state securities commission or the Israeli Securities Authority has approved or
disapproved of these securities or determined if this prospectus is truthful or
complete. Any representation to the contrary is a criminal offense</B>. </FONT></P>

<TABLE ALIGN=CENTER BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="100%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="30%" NOSHADE COLOR=GRAY ALIGN=CENTER>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P ALIGN=CENTER><BR><FONT SIZE=2>The
 date of this prospectus is ________, 2008</FONT></P>
</TD>
</TR>
</TABLE>
<BR>
<HR WIDTH="100%" size="1" noshade style="margin-top: -2px">
<HR WIDTH="100%" size="4" noshade style="margin-top: -10px">
<PAGE>

<P ALIGN=CENTER><FONT SIZE=2><B>TABLE OF CONTENTS</B></FONT></P>

<TABLE ALIGN=CENTER BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="90%" VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD WIDTH="3%" VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD WIDTH="4%" VALIGN=BOTTOM>
<P ALIGN=RIGHT>&nbsp;</P>
</TD>
<TD WIDTH="2%" VALIGN=BOTTOM>
<P ALIGN=RIGHT>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1><B>Item</B></FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1><B>Page</B></FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=2><A HREF="#A101">Prospectus Summary</A></FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=2>3</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=2><A HREF="#A102">The
 Offering</A></FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=2>4</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=2><A HREF="#A103">Risk
 Factors</A></FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=2>5</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=2><A HREF="#A104">Forward-Looking
 Statements</A></FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=2>15</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=2><A HREF="#A105">Capitalization</A></FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=2>16</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=2><A HREF="#A106">Price
 Range of Ordinary Shares</A></FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=2>17</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=2><A HREF="#A107">Use of
 Proceeds</A></FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=2>18</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=2><A HREF="#A108">Dilution</A></FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=2>18</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=2><A HREF="#A109">Selling
 Shareholders</A></FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=2>18</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=2><A HREF="#A110">Description
 of Ordinary Shares</A></FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=2>20</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=2><A HREF="#A111">Description
 of Units</A></FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=2>21</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=2><A HREF="#A112">Description
 of Warrants</A></FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=2>21</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=2><A HREF="#A113">Plan of
 Distribution</A></FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=2>22</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=2><A HREF="#A114">Dividend
 Policy</A></FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=2>24</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=2><A HREF="#A115">Offering
 Expenses</A></FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=2>24</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=2><A HREF="#A116">Validity
 of Securities</A></FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=2>25</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=2><A HREF="#A117">Experts</A></FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=2>25</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=2><A HREF="#A118">Where You
 Can Find More Information</A></FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=2>25</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=2><A HREF="#A119">Incorporation
 of Certain Documents by Reference</A></FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=2>26</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=2><A HREF="#A120">Enforceability
 of Civil Liabilities</A></FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=2>27</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
</TABLE>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;You
should rely only on the information contained or incorporated by reference in
this prospectus or any supplement. We have not authorized any other person to
provide you with different information. If anyone provides you with different
or inconsistent information, you should not rely on it. We are not, and any
underwriter or agent is not, making an offer to sell these securities in any
jurisdiction where the offer or sale is not permitted. You should assume that
the information appearing in this prospectus is accurate only as of the date on
the front cover of this prospectus. Our business, financial condition, results
of operations and prospects may have changed since that date. </FONT></P>

<P ALIGN=CENTER><FONT SIZE=2>2</FONT></P>

<HR WIDTH="100%" size="1" noshade style="margin-top: -2px">
<HR WIDTH="100%" size="4" noshade style="margin-top: -10px">
<PAGE>

<P ALIGN=CENTER><A NAME=A101></A><FONT SIZE=2><B>PROSPECTUS
SUMMARY</B></FONT></P>

<P><FONT SIZE=2><B>ABOUT THIS PROSPECTUS</B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This
prospectus is part of a registration statement that we filed with the
Securities and Exchange Commission, or SEC, utilizing a &#147;shelf&#148; registration
process, relating to the ordinary shares, warrants and units described in this
prospectus. Certain selling shareholders referred to in this prospectus and
identified in supplements to this prospectus may also offer and sell shares of
our ordinary shares under this prospectus. Under this shelf process, we may
sell the securities described in this prospectus in one or more offerings up to
a total initial offering price of $6,250,000. The selling shareholders may sell
up to 1,736,796 ordinary shares in one or more offerings. The offer and sale of
securities under this prospectus may be made from time to time, in one or more
offerings in any manner described under the section in this prospectus entitled
&#147;Plan of Distribution.&#148; </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Each
time we sell securities, we will provide a prospectus supplement that will
contain specific information about the terms of that offering. The prospectus
supplement may also add, update or change information contained in this
prospectus. You should read both this prospectus and any prospectus supplement
together with additional information described under the heading &#147;Where You Can
Find More Information&#148; and &#147;Incorporation of Certain Documents by Reference.&#148; </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This
prospectus does not contain all of the information set forth in the
registration statement, certain parts of which are omitted in accordance with
the rules and regulations of the SEC. Accordingly, you should refer to the
registration statement and its exhibits for further information about us and
our ordinary shares. Copies of the registration statement and its exhibits are
on file with the SEC. Statements contained in this prospectus concerning the
documents we have filed with the SEC are not intended to be comprehensive, and
in each instance we refer you to a copy of the actual document filed as an
exhibit to the registration statement or otherwise filed with the SEC. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We
have not authorized anyone to provide you with information different from that
contained or incorporated by reference in this prospectus. The offers to sell
and to buy our ordinary shares are made only in jurisdictions where offers and
sales are permitted. The information contained in this prospectus is accurate
only as of the date of this prospectus, regardless of the time of delivery of
this prospectus or of any sale of ordinary shares. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Unless
the context otherwise requires, all references in this prospectus to &#147;BOS,&#148;
&#147;we,&#148; &#147;our,&#148; &#147;our company,&#148; &#147;us&#148; and the &#147;Company&#148; refer to BOS Better Online
Solutions Ltd. and its consolidated subsidiaries. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All
references in this prospectus to &#147;ordinary shares&#148; refer to our ordinary
shares, nominal value NIS 4.00 per share. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All
references in this prospectus to &#147;dollars&#148; or &#147;$&#148; are to United States dollars.
</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All
references in this prospectus to &#147;shekels&#148; or &#147;NIS&#148; are to New Israeli Shekels.
</FONT></P>

<P><FONT SIZE=2><B>THE COMPANY </B></FONT></P>

<P><FONT SIZE=2>We were
incorporated in Israel in 1990 and are subject to the Israeli Companies Law
1999 - 5759. Our executive offices and engineering, development, testing,
shipping and service operations are located in Israel and the USA. </FONT></P>

<P><FONT SIZE=2>Our telephone
number is 972-3-954-1000 and our website address is www.boscorporate.com. Our
subsidiary Odem maintains a website showcasing our services in the field of
RFID. The website address is <U>www.yourfid.com</U>. The information contained
on, or linked from, our website is not a part of this prospectus. </FONT></P>

<P ALIGN=CENTER><FONT SIZE=2>3</FONT></P>

<HR WIDTH="100%" size="1" noshade style="margin-top: -2px">
<HR WIDTH="100%" size="4" noshade style="margin-top: -10px">
<PAGE>

<P><FONT SIZE=2>We operate our
business through two segments: </FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="95%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT size=3 FACE="wingdings">&#159;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Supply Chain Solutions &#150;
conducted through two wholly owned subsidiaries: Odem Electronic Technologies 1992 Ltd.
and Summit Radio Corp. Our Supply Chain Solutions business offers a wide range of
electronic components to customers in the aviation and aerospace industry that prefer to
work with a limited number of suppliers such as BOS that are be able to provide a
comprehensive solution to their components-supply needs. </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT size=3 FACE="wingdings">&#159;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Mobile and RFID Solutions &#150;
conducted through BOS and two wholly owned subsidiaries: Dimex Solutions Ltd. (previously
named BOScom Ltd.) and its subsidiary Dimex Hagalil Projects (2008) Ltd. Our Mobile and
RFID Solutions offering consist of three products and solutions that together are a
comprehensive turn- key solution combining mobile infrastructure of manufacturers that we
represent, middleware software and a software application.  </FONT></P>
</TD>
</TR>
</TABLE>

<P ALIGN=CENTER><A NAME=A102></A><FONT SIZE=2><B>THE OFFERING</B></FONT></P>

<P><FONT SIZE=2>This
prospectus relates to the sale by the Company of any combination of securities
described in this prospectus in one or more offerings up to a total dollar
amount of $6,250,000. This prospectus provides you with a general description
of the securities that we may offer. Each time we sell securities, we will
provide a prospectus supplement that will contain specific information about
the terms of the offering. The prospectus supplement may also add, update or
change information contained in this prospectus. You should read both this
prospectus and any prospectus supplement, together with additional information
described below under the headings &#147;Where You Can Find More Information,&#148; and
&#147;Incorporation of Certain Documents by Reference&#148; before purchasing any of our
securities. </FONT></P>

<P><FONT SIZE=2>In addition,
this prospectus relates to the offering by selling shareholders of up to
1,736,796 ordinary shares as follows: </FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="90%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT size=3 FACE="wingdings">&#159;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>  up to 1,084,982 ordinary
shares that were issued in private placements in June 2007 and December 2007; </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT size=3 FACE="wingdings">&#159;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>  up
  to 541,814 ordinary shares issuable to the selling shareholders upon the
  exercise of warrants that were issued in the December 2007 private placement</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT size=3 FACE="wingdings">&#159;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Up to
  110,000 ordinary shares that were issued to a selling shareholder in a
  private placement in June 2008. For additional details see &#147;Selling
  Shareholders&#148;. </FONT></P>
</TD>
</TR>
</TABLE>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;BOS
is filing the registration statement of which this prospectus is a part at this
time to fulfill its contractual obligation to do so. Registration of the
ordinary shares does not necessarily mean that all or any portion of such
ordinary shares will be offered for sale by the selling shareholders.</FONT></P>


<P ALIGN=CENTER><FONT SIZE=2>4</FONT></P>

<HR WIDTH="100%" size="1" noshade style="margin-top: -2px">
<HR WIDTH="100%" size="4" noshade style="margin-top: -10px">
<PAGE>




<P ALIGN=CENTER><A NAME=A103></A><FONT SIZE=2><B>RISK FACTORS</B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>You should carefully consider the risks described
below and all the information contained or incorporated by reference into this
prospectus before making an investment decision regarding our ordinary shares.
The risks described below are not the only risks facing our company. Additional
risks and uncertainties that we are not aware of or that we currently believe
are immaterial may also adversely affect our business, financial condition,
results of operation and liquidity. The trading price of our ordinary shares could
decline due to any of these risks, and you may lose all or part of your
investment. </I></FONT></P>










<P><FONT SIZE=2><B><U>Risks relating to our financial results and
capital structure</U>:</B></FONT></P>

<P><FONT SIZE=2><B><I>We have had a
history of losses and our future levels of sales and ability to achieve
profitability are unpredictable. </I></B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As
of December 31, 2007, we had an accumulated deficit of $51 million. In 2007 we
had a net loss of $8.4 million, of which $5.6 million was due to impairment of
investment in the shares Qualmax Inc. (Pink Sheets: QMXI.PK) and its subsidiary
New World Brands (OTC: NWBD.OB). Our ability to maintain and improve future
levels of sales and profitability depends on many factors, which include:</FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="95%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT size=3 FACE="wingdings">&#159;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>successful
  integration of Summit Radio Corp. (&#147;Summit&#148;) which was acquired in November
  2007 and of the assets of Dimex Systems (1988) Ltd., which were purchased in
  March 2008.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT size=3 FACE="wingdings">&#159;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>financing
  working capital needs by debt or equity.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT size=3 FACE="wingdings">&#159;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>continuing
  growth in the Aerospace industry and continued demand for our existing
  products.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT size=3 FACE="wingdings">&#159;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>developing
  and selling new products to meet customer needs.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT size=3 FACE="wingdings">&#159;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>penetrating
  into the RFID market.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT size=3 FACE="wingdings">&#159;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>controlling
  costs and successfully implementing our business strategy; and</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT size=3 FACE="wingdings">&#159;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>manufacture
  and delivery of products in a timely manner.</FONT></P>
</TD>
</TR>
</TABLE>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;There
can be no assurance that we will be able to meet our challenges and experience
any growth in sales or achieve profitability in the future or that the levels
of historic sales or profitability experienced during previous years will
continue in the future or that our net losses will not increase in the future. </FONT></P>

<P><FONT SIZE=2><B><I>We may be unable to
maintain our gross profit margins. </I></B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our
sales and profitability may vary in any given year, and from quarter to
quarter. In order to increase sales and enter into new markets with new
products we may find it necessary to decrease prices in order to be
competitive. Additionally, the gross profit margin of our Supply Chain Segment,
whose sales accounted for 89% of our total sales in 2007 and in 2006, tends to
fluctuate. We may not be able to maintain current gross profit margins in the
future, which would have a material adverse effect on our business. </FONT></P>

<P><FONT SIZE=2><B><I>We require a
significant amount of cash to satisfy our debt obligations. If we fail to
generate sufficient cash flow from operations, we may need to renegotiate or
refinance our debt, obtain additional financing, postpone capital expenditures
or sell assets. If we are forced to repay our short and long term bank loans in
cash, we may not have enough cash to fund our operations. </I></B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As
of March 31, 2008 we had $6,146,000 of short term bank loans drawn under a
revolving credit facility, $701,000 current maturities of long term loans and
long terms loans in the amount of $3,144,100. We depend mainly on our cash generated
by continuing operating activities to make payments on our debts. We cannot
assure that we will generate sufficient cash flow from operations to make the
scheduled payments on our debt. Our ability to meet our debt obligations will
depend on whether we can successfully implement our strategy, as well as on
economic, financial, competitive and technical factors.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Some
of the factors are beyond our control, such as economic conditions in the
markets where we operate or intend to operate, changes in our customers&#146; demand
for our products, and pressure from existing and new competitors. Also, because
part of our loans bear interest at floating rates, we are susceptible to an
increase in interest rates.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If
we cannot generate sufficient cash flow from operations to make scheduled
payments on our debt obligations, we may need to renegotiate the terms of our
debt, refinance our debt, obtain additional financing, delay planned capital
expenditures or sell assets.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If
our lenders decline to renegotiate the terms of our debt in these
circumstances, the lenders could declare all amounts borrowed and all amounts
due to them under the agreements due and payable. </FONT></P>

<P ALIGN=CENTER><FONT SIZE=2>5</FONT></P>

<HR WIDTH="100%" size="1" noshade style="margin-top: -2px">
<HR WIDTH="100%" size="4" noshade style="margin-top: -10px">
<PAGE>
<BR>
<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
addition, our short and long term bank loans contain certain provisions,
restrictions and financial covenants, which if violated, could result in the
full principal amounts together with interest and other amounts becoming
immediately due and payable in cash. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If
we do not have the cash resources to repay our indebtedness in such
circumstances, our lenders could foreclose on our assets that are subject to
liens and sell our assets to satisfy the debt. </FONT></P>

<P><FONT SIZE=2><B><I>Our assets are
subject to security interests in favor of our lenders. Our failure to repay the
bank loans, if required, could result in legal action against us, which could
require the sale of all of our assets. </I></B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
repayment of our bank debt is secured by a first priority floating charge on
all of our company&#146;s assets, present and future as they may be changing from
time to time, and by a first priority fixed charge on all of the Company&#146;s
issued and unpaid-for share capital, its goodwill and its shares of Dimex
Solutions Ltd. and Odem Electronic Technologies 1992 Ltd. (&#147;Odem&#148;). In
addition, the Company and its subsidiaries entered into a series of inter
company guarantees in favor of our lenders. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If
we are unable to repay the bank loans when due, our lenders could foreclose on
our assets in order to recover the amounts due. Any such action would require
us to curtail or cease operations. </FONT></P>

<P><FONT SIZE=2><B><I>Our debt obligations
may hinder our growth and put us at a competitive disadvantage. </I></B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our
debt obligations require us to use a substantial portion of our operating cash
flow to repay the principal and interest on our loans. This reduces funds
available to grow and expand our business, limits our ability to pursue
business opportunities and makes us more vulnerable to economic and industry
downturns. The existence of debt obligations and covenants also limits our
ability to obtain additional financing on favorable terms. </FONT></P>

<P><FONT SIZE=2><B><I>Due to restrictions
in our loan agreements, we may not be able to operate our business as we
desire. </I></B></FONT></P>

<P><FONT SIZE=2>Our loan
agreements contain a number of conditions and limitations on the way in which
we can operate our business, including limitations on our ability to raise
debt, sell or acquire assets and pay dividends. Our loan agreements also
contain various covenants which require that we maintain certain financial
ratios related to shareholder&#146;s equity and operating results. These limitations
and covenants may force us to pursue less than optimal business strategies or
forgo business arrangements which could have been financially advantageous to
our shareholders and us. Our failure to comply with the covenants and
restrictions contained in our loan agreements could lead to a default under the
terms of these agreements.</FONT></P>

<P><FONT SIZE=2><B><U>Risks related to our business:</U></B></FONT></P>

<P><FONT SIZE=2><B><I>Integration of our
acquisitions requires significant financial and management resources and there
is no assurance that the acquisitions may prove successful. </I></B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Over
the past years we have pursued the acquisition of businesses, products and
technologies and recently we completed two major acquisitions, of the U.S.
based Summit, in November 2007, and of the assets of the Israeli Dimex Systems
(1988) Ltd., in March 2008.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our
growth increases the complexity of our operations, places significant demands
on our management and our operational, financial and marketing resources and
involves a number of challenges, including:</FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="95%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT size=3 FACE="wingdings">&#159;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>managing
  geographically dispersed operations;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT size=3 FACE="wingdings">&#159;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>retaining and motivating
  key personnel of the acquired businesses;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT size=3 FACE="wingdings">&#159;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>assimilating
  different corporate cultures;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT size=3 FACE="wingdings">&#159;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>preserving
  the business relationships with existing key customers and suppliers;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT size=3 FACE="wingdings">&#159;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>maintaining
  uniform standards, controls, procedures and policies; and </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT size=3 FACE="wingdings">&#159;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>introducing
  joint products and service offerings.</FONT></P>
</TD>
</TR>
</TABLE>

<P ALIGN=CENTER><FONT SIZE=2>6</FONT></P>

<HR WIDTH="100%" size="1" noshade style="margin-top: -2px">
<HR WIDTH="100%" size="4" noshade style="margin-top: -10px">
<PAGE>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;There
can be no assurance that we will be able to successfully integrate and manage
our recent acquisitions in order to maintain and grow the combined business and
maximize the potential synergies. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Further, once integrated,
acquisitions may not achieve comparable levels of revenues, profitability or productivity as our
existing business or otherwise perform as expected. The occurrence of any of
these events could harm our business, financial condition or results of
operations. </FONT></P>

<P><FONT SIZE=2><B><I>We may be unable to
effectively manage our growth and expansion, and as a result, our business
results may be adversely affected. </I></B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our
goal is to grow significantly over the next few years. The management of our
growth, if any, will require the continued expansion of our operational and
financial control systems, as well as a significant increase in our financial
resources and in our delivery and service capabilities. These factors could
place a significant strain on our resources.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our
inability to meet our delivery commitments in a timely manner (as a result of
unexpected increases in orders, for example) could result in losses of sales,
our exposure to contractual penalties, costs or expenses, as well as damage to
our reputation in the marketplace.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our
inability to manage growth effectively could have a material adverse effect on
our business, financial condition and results of operations.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If
our efforts to raise capital do not succeed, our efforts to increase our
business may be seriously jeopardized. </FONT></P>

<P><FONT SIZE=2><B><I>A significant part
of the revenues of our supply chain business are from two major customers: Israel
Aircraft Industries (&#147;IAI&#148;) and a strategic Latin American customer (the
&#147;Strategic Customer&#148;). </I></B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our
business relationship with IAI and the Strategic Customer accounted for 11% and
10% of our revenues in the first quarter of 2008, respectively. An interruption
in our business relationship with IAI or with the Strategic Customer would
result in a significant reduction in our revenues and backlog and in a
write-off of inventory, and would have a material adverse effect on our
business and results of operations.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our
long term sales agreement with IAI will end by December 2008. In May 2008, we
announced that we finalized a contract for the sale of components to the
Strategic Customer. The contract, expected to be signed in the near future,
provides for a framework for orders potentially amounting to up to $25 million
during an initial five-year term (until 2012). The contract may be extended for
additional five-year terms. The contract may be extended for additional
five-year terms. Pursuant to the contract, we committed to a fixed components
sale price through 2010. Each of our agreements with IAI and the Strategic
Customer subjects us to the following risks: </FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="95%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT size=3 FACE="wingdings">&#159;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2><B><I>Significant appreciation in the cost price
  of electronic components may materially adversely impact our financial
  results. </I></B></FONT></P>
</TD>
</TR>
<TR>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD COLSPAN="3" VALIGN=TOP>
<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our
  sales agreements provide for the supply of electronic components at a fixed
  sales price. Absent the flexibility to increase our prices as a result of
  increased costs of the components, significant increased costs may adversely
  impact our financial results. </FONT></P>
</TD>
</TR>
<TR>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT size=3 FACE="wingdings">&#159;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2><B><I>The relationship with the IAI and the
  Strategic Customer requires us to hold a large inventory, in order to meet
  short lead time and delivery requirements. If we are unable to sell this
  inventory on a timely basis, we could incur charges for excess and obsolete
  inventory, which would materially adversely affect our results of operations.
  </I></B></FONT></P>
</TD>
</TR>
</TABLE>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Under
the agreements with IAI and the Strategic Customer, we are obligated to hold
inventory of products necessary for three months of production. This requires
us to incur the costs of purchasing inventory without having an outstanding
purchase order for the products. If we are unable to sell products that are
purchased to hold in inventory, we may incur write-offs and write-downs as a
result of slow-moving items, technological obsolescence, excess inventories,
discontinued products and products with market prices lower than cost. Such
write-offs and write-downs could adversely affect our operating results and
financial condition. </FONT></P>

<P ALIGN=CENTER><FONT SIZE=2>7</FONT></P>

<HR WIDTH="100%" size="1" noshade style="margin-top: -2px">
<HR WIDTH="100%" size="4" noshade style="margin-top: -10px">
<PAGE>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="90%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT size=3 FACE="wingdings">&#159;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2><B><I>If we are unable to provide certain
  requested components, the entire order which includes these components may be
  cancelled. </I></B></FONT></P>
</TD>
</TR>
</TABLE>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Supply
Chain solution programs of electronic components accommodate the preference of
customers to work with a limited number of suppliers that will be able to
provide a wide range of electronic components under one order. In the event we
are not able to provide certain of the components ordered, the customer could
elect to terminate the entire order before its delivery. This could cause us to
remain with excess and obsolete inventory and would adversely affect our
results of operations. </FONT></P>

<P><FONT SIZE=2><B><I>The continued growth
of our Mobile and RFID Solutions segment depends on our ability to expand sales
abroad. </I></B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our
Mobile and RFID Solutions
revenues that were generated from sales outside of Israel amounted, in the
first quarter of year 2008, to $626,000 or 35% of the entire Mobile and RFID
Solutions revenues. Continued growth of this segment depends on our ability to
further increase our sales abroad. There can be no assurance that we will be
able to maintain and increase our revenues from these markets. </FONT></P>

<P><FONT SIZE=2><B><I>Certain customers of
our Supply Chain Solutions may cancel purchase orders they placed before the
delivery. </I></B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Certain
purchase orders of our Supply Chain Solutions provide that they may be canceled
by the customer before delivery. In the event substantial orders are so
cancelled, there is no assurance that we will be able to sell the pre-purchased
inventory at a profit, or at all. This could result in excess and obsolete
inventory and could have a material adverse effect on our results of
operations. </FONT></P>

<P><FONT SIZE=2><B><I>The Company&#146;s
subsidiary, Summit, engages in a number of business activities governed by
Federal Regulations, which if violated, could subject the Company to civil or
criminal fines and penalties. </I></B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Company&#146;s subsidiary, Summit, engages in a number of business activities
governed by the Federal Acquisition Regulations (FAR), the Defense Federal
Acquisition Regulations (DFAR) and the export control provisions of the
International Traffic In Arms Regulations (ITAR) of the Department of State.
The FAR and DFAR regulate business with the U.S. Department of Defense as well
as other U.S. Government agencies regardless of whether the company serves in
the role of a prime contractor (in direct privity of contract with the
governmental agency) or as a subcontractor to a prime contractor, regardless of
how many tiers down the contracting chain. Violation of the FAR or DFAR can
result in civil and criminal fines and other penalties, including suspension or
debarment from the ability to do business with any agency of the Federal
Government, whether directly or indirectly. Much of the Summit&#146;s business,
regardless of whether with the Federal Government, involves compliance with the
ITAR, the export control regulations for the export of defense articles,
technology or defense services. ITAR violations are, in effect, a violation of
the Arms Export Control Act. Fines and penalties can be civil or criminal.
Civil fines are $250,000 per violation or twice the value of the transaction.
Criminal violations include fines of $1,000,000 per violation both for
individuals and the company. Violation of the ITAR can also lead to loss of
export privileges for up to four years. </FONT></P>

<P><FONT SIZE=2><B><I>The sales of the
BOS&#226;NOVA Suite Solution (one of the products of Mobile and RFID Solutions
segment) in the United States depend on one key distributor. In the event that
we cease working with the key distributor, we may experience an interruption in
sales until an alternative source of distribution can be found, which may have
a material adverse effect on our business. </I></B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We
market BOS&#226;NOVA Suite Solutions in the United States through one key
distributor. In 2007 and in 2006 our sales though this distributor accounted
for 4% and 7% of our total sales, respectively, and for approximately 18% and
21% of our gross profit, respectively. In the event that we cease working with
this key distributor, we may experience a reduction in our gross profit until
an alternative source of distribution can be found, which may have a material
adverse effect on our business. </FONT></P>

<P ALIGN=CENTER><FONT SIZE=2>8</FONT></P>

<HR WIDTH="100%" size="1" noshade style="margin-top: -2px">
<HR WIDTH="100%" size="4" noshade style="margin-top: -10px">
<PAGE>

<P><FONT SIZE=2><B><I>We are required to
make additional payments towards the acquisition of the assets of Dimex. </I></B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant
to the Dimex Asset Purchase Agreement we are required to pay to the sellers an
additional amount of approximately NIS 25 million (approximately $7.7 million,
based on May 31, 2008 currency exchange rate), in four installments. The first
installment of NIS 15 million is due in September 2008 and the remaining amount
is payable in three semi-annual installments through March 2010.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If
we are unable to make these payments, we will be in breach of contract and our
financial position, and results of operation could be adversely affected.</FONT></P>

<P><FONT SIZE=2><B><I>We rely on certain
key suppliers for the supply of our products. </I></B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Most
of our sales in our Supply Chain Solution segment rely on products of certain
main manufacturers, which we represent. One major manufacturer accounted for
11% of our Supply Chain Solutions segment purchases during 2007.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
the event that any of our suppliers becomes unable to fulfill our requirements
in a timely manner of if we cease our business relationship with these
manufacturers we may experience an interruption in delivery until an
alternative source of supply can be obtained. </FONT></P>

<P><FONT SIZE=2><B><I>Future changes in
industry standards may have an adverse effect on our business. </I></B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;New
industry standards in the aviation and defense industry could cause a portion
of our Supply Chain Solution segment&#146;s inventory to become obsolete and
unmarketable which would adversely affect our results of operations. </FONT></P>

<P><FONT SIZE=2><B><I>We depend on key
personnel and need to be able to retain them and our other employees. </I></B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our
success depends, to a significant extent, on the continued active participation
of our executive officers and other key personnel. In addition, there is
significant competition for employees with technical expertise in our industry.
Our success will depend, in part, on:</FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="90%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT size=3 FACE="wingdings">&#159;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>our ability
  to retain the executive officers and key technical personnel who have been
  involved in the development of our two divisions;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT size=3 FACE="wingdings">&#159;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>our ability
  to attract and retain additional qualified personnel to provide technological
  depth and support to enhance existing products and develop new products; and</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT size=3 FACE="wingdings">&#159;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>our ability
  to attract and retain highly skilled computer operating, marketing and
  financial personnel. </FONT></P>
</TD>
</TR>
</TABLE>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We cannot
make assurances that we will be successful in attracting, integrating,
motivating and retaining key personnel. If we are unable to retain our key
personnel and attract additional qualified personnel as and when needed, our business
may be adversely affected.</FONT></P>

<P><FONT SIZE=2><B><I>In consideration of our sale of our
Communication segment we received shares of Qualmax Inc. and of its subsidiary
New World Brands Inc. We have already recorded a loss in respect of these
holdings and may need to record additional losses if the stock price of New
World Brand or Qualmax decreases. </I></B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On
December 31, 2005 we closed a transaction for the sale of our Communications
segment to IP Gear Ltd. (&#147;IP Gear&#148;), a wholly owned subsidiary of Qualmax Inc.
(&#147;Qualmax&#148;), in consideration for common stock of Qualmax. In September 2006
Qualmax transferred all of its assets and liabilities to World Brands Inc.
(&#147;New World&#148;) in exchange for shares of Preferred Stock of New World.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
December, 2006, we closed a transaction with Qualmax and its subsidiaries, New
World and IP Gear, pursuant to which we converted approximately $1.5 million
payable to us by Qualmax and IP Gear into approximately 16.5 million shares of
New World common stock.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
connection with the transaction, we agreed to grant New World, contingent upon
the satisfaction of certain conditions, a three-year option to purchase up to
30% of the New World shares held by us, at prices ranging from $0.12 to $0.24
per share of common stock. </FONT></P>

<P ALIGN=CENTER><FONT SIZE=2>9</FONT></P>

<HR WIDTH="100%" size="1" noshade style="margin-top: -2px">
<HR WIDTH="100%" size="4" noshade style="margin-top: -10px">
<PAGE>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
addition, we agreed to enter into a lock up agreement, restricting the transfer
of our share holdings in Qualmax and in New World, for up to two years. New
World has a limited operating history on which to judge whether or not this
company will be successful. If New World is not successful in its business or
if New World and Qualmax share price is subject to a prolonged decline, we may
be required to record an impairment of the investment, which could materially
adversely affect our results of operation.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
year 2007 we recorded a $5.6 million loss due to a decrease in the share price
of New World and Qualmax. In the first quarter of 2008, due to an increase in
the share price of New World, the book value of our investment increased by
$244,000, which was recorded against other comprehensive income (i.e. capital
fund) and did not affect our statement of operations.</FONT></P>

<P><FONT SIZE=2><B><I>The recent slowdown
in the financial markets and resulting expected economic slow down in the
industry and in technology markets may have an adverse impact on us and on the
value of our shares. </I></B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our
Company, like other technology companies, has been and is subject to the
effects of market slowdowns in the technology industry. If general economic
conditions fail to improve, or if they deteriorate, our revenues, operating
results and financial condition would be adversely affected. </FONT></P>

<P><FONT SIZE=2><B><I>If revenue levels
for any quarter fall below our expectations, our results of operations will be
adversely affected. </I></B></FONT></P>

<P><FONT SIZE=2>Our revenues
in any quarter are substantially dependent on orders received and delivered in
that quarter. We base our decisions regarding our operating expenses on
anticipated revenue trends, and our expenses level are relatively fixed, or
require some time for adjustment. Hence, revenue levels below our expectations
will adversely affect our results of operations. </FONT></P>

<P><FONT SIZE=2><B><I>Foreign currency
fluctuations significantly impact on our business results. </I></B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
vast majority of our sales are made in U.S. dollars and a significant part of
our expenses is in New Israel Shekels (&#147;NIS&#148;). Our NIS related costs, as
expressed in U.S. dollars, are influenced by the exchange rate between the U.S.
dollar and the NIS. In 2007, and until May 31, 2008, the U.S. dollar
depreciated against the NIS by approximately 23.5%, which resulted in a
significant increase in the U.S. dollar cost of our NIS expenses. We cannot
predict any future trends in the rate of devaluation or appreciation of the NIS
against the U.S dollar. Further significant depreciation could have an adverse
effect on our results of operation and financial condition. </FONT></P>

<P><FONT SIZE=2><B><I>The rate of
inflation in Israel may negatively impact our costs if it exceeds the rate of
devaluation of the NIS against the U.S. dollar. Similarly, the U.S. dollar cost
of our operations in Israel will increase to the extent increases in the rate
of inflation in Israel are not offset by a devaluation of the NIS in relation
to the U.S. dollar. </I></B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A
substantial amount of our revenues is denominated in U.S. dollars or is U.S.
dollar-linked, but we incur a significant portion of our expenses, principally
the rent for our facilities in Israel and salaries and related personnel
expenses in Israel, in NIS. As a result, we are exposed to the risk that the
rate of inflation in Israel will exceed the rate of devaluation of the NIS in
relation to the U.S. dollar or that the timing of this devaluation lags behind
inflation in Israel. In that event, the U.S. dollar cost of our operations in
Israel will increase and our U.S. dollar-measured results of operations will be
adversely affected. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Similarly,
we are exposed to the risk that the NIS, after adjustment for inflation in
Israel, will appreciate in relation to the U.S. dollar. In that event, the
dollar cost of our operations in Israel will increase and our dollar-measured
results of operations will be adversely affected. During 2005, 2006 and 2007,
the inflation adjusted NIS appreciated against the U.S. dollar, which raised
the dollar cost of our Israeli operations. We cannot predict whether in the
future the NIS will appreciate against the U.S. dollar or vice versa. Any
increase in the rate of inflation in Israel, unless the increase is offset on a
timely basis by a devaluation of the NIS in relation to the U.S. dollar, will
increase labor and other costs, which will increase the dollar cost of our
operations in Israel and harm our results of operations. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To
date, we have not engaged in hedging transactions. In the future, we may enter
into currency hedging transactions to decrease the risk of financial exposure
from fluctuations in the exchange rate of the
U.S. dollar against the NIS. Even if we perform hedging transactions, they may
not adequately protect us from the effects of inflation in Israel. </FONT></P>

<P ALIGN=CENTER><FONT SIZE=2>10</FONT></P>

<HR WIDTH="100%" size="1" noshade style="margin-top: -2px">
<HR WIDTH="100%" size="4" noshade style="margin-top: -10px">
<PAGE>

<P><FONT SIZE=2><B><I>We may be unable to
maintain and continue developing marketing and distribution arrangements and
expand our reach into overseas markets. </I></B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Sales
outside Israel accounted for 33% of our total sales in 2007 and for 29% in
2006. If we are not able to maintain our existing distribution channels and
expand to new international markets, our operating results may be materially
adversely affected. </FONT></P>

<P><FONT SIZE=2><B>If we are unsuccessful in developing and
introducing new products, we may be unable to expand our business. </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
market for some of our products is characterized by rapidly changing technology
and evolving industry standards. The introduction of products embodying new
technology and the emergence of new industry standards can render existing
products obsolete and unmarketable and can exert price pressures on existing
products.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our
ability to anticipate changes in technology and industry standards and
successfully develop and introduce new and enhanced products as well as
additional applications for existing products, in each case on a timely basis,
will be critical in our ability to grow and remain competitive. Although these
products are related to, and even incorporate our existing products, there can
be no assurance that we will be able to successfully develop and market any
such new products. If we are unable to develop products that are competitive in
technology and price and responsive to customer needs, for technological or
other reasons, our business will be materially adversely affected. </FONT></P>

<P><FONT SIZE=2><B><I>We have significant
sales worldwide and could encounter problems if conditions change in the places
where we market our products. </I></B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We
have sold and intend to continue to sell our products in North and Latin
America and in Europe.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A
number of risks are inherent in engaging in international transactions,
including:  </FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="90%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT size=3 FACE="wingdings">&#159;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>possible
  problems in collecting receivables;   </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT size=3 FACE="wingdings">&#159;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>imposition
  of governmental controls, or export license requirements;  </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT size=3 FACE="wingdings">&#159;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>political
  and economic instability in foreign countries; </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT size=3 FACE="wingdings">&#159;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>trade
  restrictions or changes in tariffs being imposed; and  </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT size=3 FACE="wingdings">&#159;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>laws and
  legal issues concerning foreign countries. </FONT></P>
</TD>
</TR>
</TABLE>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If
we should encounter such difficulties in conducting our international
operations, it may adversely affect our business condition and results of
operations.</FONT></P>

<P><FONT SIZE=2><B><I>We may be unable to
successfully defend ourselves against claims brought against us. </I></B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We
are defendants in a number of lawsuits filed against us, and from time to time
in the normal course of our business, may receive written demands for payments
from prospective plaintiffs. Legal proceedings can be expensive, lengthy and
disruptive to normal business operations, and can require extensive management
attention and resources regardless of their merit. Moreover, we cannot predict
the results of all proceedings and there can be no assurance that we will be
successful in defending ourselves against them. An unfavorable resolution of a
lawsuit or proceeding could materially adversely affect our business, results
of operations and financial condition. </FONT></P>

<P ALIGN=CENTER><FONT SIZE=2>11</FONT></P>

<HR WIDTH="100%" size="1" noshade style="margin-top: -2px">
<HR WIDTH="100%" size="4" noshade style="margin-top: -10px">
<PAGE>

<P><FONT SIZE=2><B><I>We may be obligated
to indemnify our directors and officers. </I></B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Company has agreements with its directors and senior officers which provide,
subject to Israeli law, for the Company to indemnify these directors and senior
officers for (a) monetary liability imposed upon them in favor of a third party
by a judgment, including a settlement or an arbitral award  confirmed by the court, as a result of an
act or omission of such person in his capacity as a director or officer of the
Company, (b) reasonable litigation expenses, including attorney&#146;s fees,
incurred by them pursuant to an investigation or a proceeding commenced against
them by a competent authority and that was terminated without an indictment and
without having a monetary charge imposed on them in exchange for a criminal
procedure (as such terms are defined in the Israeli Companies Law), or that was
terminated without an indictment but with a monetary charge imposed on them in
exchange for a criminal procedure in a crime that does not require proof of
criminal intent, as a result of an act or omission of such person in his
capacity as a director or officer of the Company, and (c) reasonable litigation
expenses, including attorney&#146;s fees, incurred by such a director or officer or
imposed on him by a court, in a proceeding brought against him by or on behalf
of the Company or by a third party, or in a criminal action in which he was
acquitted, or in a criminal action which does not require criminal intent in
which he was convicted, in each case relating to acts or omissions of such
person in his capacity as a director or officer of the Company. Such
indemnification may materially adversely affect our financial condition. </FONT></P>

<P><FONT SIZE=2><B><I>The measures we take
in order to protect our intellectual property may not be effective or
sufficient. </I></B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our
success is dependent upon our proprietary rights and technology. We currently
rely on a combination of trade secret, copyright and trademark law, together
with non-disclosure and invention assignment agreements, to establish and
protect the proprietary rights and technology used in our products. We
generally enter into confidentiality agreements with our employees,
consultants, customers and potential customers and limit the access to and the
distribution of our proprietary information. Despite these precautions, it may
be possible for a third party to copy or otherwise obtain and use our
technology without authorization, or to develop similar technology
independently. We do not believe that our products and proprietary rights
infringe upon the proprietary rights of others. However, there can be no
assurance that any other party will not argue otherwise. The cost of responding
and adequately protecting ourselves against any such assertion may be material,
whether or not the assertion is valid. Further, the laws of certain countries
in which we sell our products do not protect our intellectual property rights
to the same extent as do the laws of the United States. Substantial
unauthorized use of our products could have a material adverse effect on our
business. We cannot make assurances that our means of protecting our
proprietary rights will be adequate or that our competitors will not independently
develop similar technology. Additionally, there are risks that arise from the
use of intranet networks and the Internet. Although we utilize firewalls and
protection software, we cannot be sure that our proprietary information is
secured against penetration. Such penetration, if occurs, could have an adverse
effect on our business. </FONT></P>

<P><FONT SIZE=2><B><I>There can be no
assurance that we will not be classified as a passive foreign investment
company (a &#147;PFIC&#148;). </I></B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Based
upon our current and projected income, assets and activities, we do not believe
that at this time BOS is a passive foreign investment company (a &#147;PFIC&#148;) for
U.S. federal income tax purposes, but there can be no assurance that we will
not be classified as such in the future. Such classification may have grave tax
consequences for U.S. shareholders. One method of avoiding such tax
consequences is by making a &#147;qualified electing fund&#148; election for the first
taxable year in which the Company is a PFIC. However, such an election is
conditioned upon our furnishing U.S. shareholders annually with certain tax
information. We do not presently prepare or provide such information, and such
information may not be available to U.S. shareholders if we are subsequently
determined to be a PFIC. </FONT></P>

<P ALIGN=CENTER><FONT SIZE=2>12</FONT></P>

<HR WIDTH="100%" size="1" noshade style="margin-top: -2px">
<HR WIDTH="100%" size="4" noshade style="margin-top: -10px">
<PAGE>

<P><FONT SIZE=2><B><U>Risks related to our ordinary shares:</U></B></FONT></P>

<P><FONT SIZE=2><B><I>Our share price has
been and may continue to be volatile, which could result in substantial losses
for individual shareholders. </I></B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
market price of our ordinary shares has been and may continue to be highly
volatile and subject to wide fluctuations. From January 2006 through May 2008,
the daily closing price of our ordinary shares in NASDAQ has ranged from $1.45
to $2.97 per share and in the Tel Aviv Stock Exchange has ranged from 4.28 NIS
to 14.58 NIS. We believe that these fluctuations have been in response to a
number of factors including the following, some of which are beyond our
control:</FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="90%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT size=3 FACE="wingdings">&#159;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>the
  acquisition of Summit and of the assets of Dimex Systems; </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT size=3 FACE="wingdings">&#159;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>actual or
  anticipated variations in our quarterly operating results; </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT size=3 FACE="wingdings">&#159;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>announcements
  of technological innovations, new products, services or new pricing practices
  by us or our competitors;   </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT size=3 FACE="wingdings">&#159;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>increased
  market share penetration by our competitors;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT size=3 FACE="wingdings">&#159;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>announcements
  by us or our competitors of significant acquisitions, strategic partnerships,
  joint ventures or capital commitments;   </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT size=3 FACE="wingdings">&#159;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>additions or
  departures of key personnel; </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT size=3 FACE="wingdings">&#159;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>issuance of
  additional shares pursuant to the exercise of warrants granted to our
  investors in previous private placement;   </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT size=3 FACE="wingdings">&#159;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>sales of
  additional ordinary shares; and</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT size=3 FACE="wingdings">&#159;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>devaluation
  of the U.S. dollar against the NIS, which caused a corresponding decrease in
  the NIS-quoted share price in Tel Aviv Stock Exchange. From January 2006
  through May 2008 the devaluation of the dollar against the NIS was 29.8%.</FONT></P>
</TD>
</TR>
</TABLE>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
addition, the stock market in general, and stocks of technology companies in
particular, have from time to time experienced extreme price and volume
fluctuations. This volatility is often unrelated or disproportionate to the
operating performance of these companies. These broad market fluctuations may
adversely affect the market price of our ordinary shares, regardless of our
actual operating performance.</FONT></P>

<P><FONT SIZE=2><B><I>The Company&#146;s shares
may be delisted from the NASDAQ Global Market if it does not meet NASDAQ&#146;s
continued listing requirements. </I></B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
late 2002 and early 2003 the Company received notice from the NASDAQ Stock
Market that its ordinary shares were subject to delisting from the NASDAQ
Global Market for failure to meet NASDAQ&#146;s minimum bid price and shareholders&#146;
equity requirements ($10 million) for continued listing on the Global Market.
Following a hearing, during 2003, we were notified by NASDAQ that we had
regained compliance.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On
August 30, 2004, we received notice from the NASDAQ Stock Market that our
ordinary shares were subject to delisting from the NASDAQ Global Market for
failure to meet NASDAQ&#146;s minimum market value of publicly held shares
requirement ($5 million) for continued listing on the Global Market. On
November 4, 2004, we were notified by NASDAQ that we had regained compliance
with this requirement.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On
January 25, 2005, we received notice from the NASDAQ Stock Market that we were
not in compliance with the minimum $10 million shareholders&#146; equity requirement
for continued listing on the Global Market. Following that notice, on January
28, 2005, we received an additional notice indicating that based on further
review of our financial statements as they appeared in our filing on Form 6-K
dated January 10, 2005, it was determined that the shareholders&#146; equity was
$10,601,000 on a pro forma basis as of September 30, 2004. Therefore we were in
compliance with the stockholders&#146; equity requirement for continued listing on
the Global Market and the matter had been closed. </FONT></P>

<P STYLE='MARGIN-RIGHT:0IN; MARGIN-LEFT:0IN'><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On
June 2, 2005, the Company again received notice from the NASDAQ Stock Market
indicating that based on the results for the period ended March 31, 2005, the
shareholders&#146; equity was $9,425,000, and accordingly not in compliance with the
minimum $10,000,000 shareholders&#146; equity requirement for continued listing on
the Global Market. In June 2005, the Company regained compliance with NASDAQ&#146;s
minimum $10,000,000 shareholders&#146; equity requirement for continued listing on
the Global Market. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;There can be no assurance that we
will be able to meet and continue to meet these or other NASDAQ requirements to maintain
our NASDAQ Global Market listing, in which case we will seek to transfer the listing of
our ordinary shares to the NASDAQ Capital Market, of which there can be no assurance. </FONT></P>


<P ALIGN=CENTER><FONT SIZE=2>13</FONT></P>

<HR WIDTH="100%" size="1" noshade style="margin-top: -2px">
<HR WIDTH="100%" size="4" noshade style="margin-top: -10px">
<PAGE>

<P><FONT SIZE=2> Risks related to our location in Israel:</FONT></P>

<P><FONT SIZE=2><B><I>Political, economic,
and security conditions in Israel affect our operations and may limit our
ability to produce and sell our products or provide our services. </I></B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We
are incorporated under the laws of the State of Israel, where we also maintain
our headquarters and our principal research and development and sales and
marketing facilities. Political, economic, security and military conditions in
Israel directly influence us. We could be adversely affected by any major
hostilities involving Israel, the interruption or curtailment of trade between
Israel and its trading partners or a significant downturn in the economic or
financial condition of Israel. In January 2006, Hamas, an Islamic movement
responsible for many attacks against Israelis, won the majority of the seats in
the Parliament of the Palestinian Authority. The election of a majority of
Hamas-supported candidates is a major obstacle to relations between Israel and
the Palestinian Authority, as well as to the stability in the Middle East as a
whole. In addition, the future of the &#147;peace process&#148; with the Palestinians is
uncertain and has deteriorated due to Palestinian violence, with the threat of
a large-scale attack by Palestinians on Israeli civilians and key
infrastructure remaining a constant concern. The past few years of renewed
terrorist attacks by the Palestinians has severely affected the Israeli economy
in many ways. In June 2007, there was an escalation in violence in the Gaza
Strip resulting in Hamas effectively controlling the Gaza Strip and a further
escalation in violence has occurred during the first few months of 2008. In
July 2006, Israel became involved in a major military conflict with the
Hizbullah organization in Lebanon, which subjected the north of Israel to
missile attacks. Ongoing violence between Israel and the Palestinians as well
as tension between Israel and the neighboring Syria and Lebanon may have a
material adverse effect on our business, financial conditions and results of
operations. In addition, several countries still restrict business with Israel
and with companies doing business in Israel. We could be adversely affected by
adverse developments in the &#147;peace process&#148; or by restrictive laws or policies
directed towards Israel or Israeli businesses. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Generally,
all nonexempt male adult citizens and permanent residents of Israel, are
obligated to perform military reserve duty annually, and are subject to being
called to active duty at any time under emergency circumstances. While we have
operated effectively under these requirements since our incorporation, we
cannot predict the full impact of such conditions on us in the future,
particularly if emergency circumstances occur. If many of our employees are
called for active duty, our business may be adversely affected. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Additionally,
in recent years Israel has been going through periods of recession in economic
activity, resulting in low growth rates and growing unemployment. Our
operations could be adversely affected if the economic conditions in Israel
deteriorate. Also, due to significant economic reforms proposed by the Israeli
government, there have been several general strikes and work stoppages in 2003
and 2004, affecting all banks, airports and ports. Such strikes or work
stoppages have an adverse effect on the Israeli economy and on our business.
Furthermore, Israel is a party to certain trade agreements with other
countries, and material changes to these agreements could have an adverse
effect on our business. </FONT></P>

<P><FONT SIZE=2><B><I>The anti-takeover
effects of Israeli laws may delay or deter a change of control of the Company. </I></B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Under
the Israeli Companies Law, a merger is generally required to be approved by the
shareholders and Board of Directors of each of the merging companies.
Shareholder approval is not required if the company that will not survive the
merger is controlled by the surviving company. Additionally, the law provides
some exceptions to the shareholder approval requirement in the surviving
company. Shares held by a party to the merger and certain of its affiliates are
not counted towards the required approval. If the share capital of the company
that will not be the surviving company is divided into different classes of
shares, the approval of each class is also required. A merger may not be
approved if the surviving company will not be able to satisfy its obligations.
At the request of a creditor, a court may block a merger on this ground. In
addition, a merger can be completed only after all approvals have been
submitted to the Israeli Registrar of Companies, provided that 30 days have
elapsed since shareholder approval was received and 50 days have passed from
the time that a proposal for approval of the merger was filed with the
Registrar. </FONT></P>

<P ALIGN=CENTER><FONT SIZE=2>14</FONT></P>

<HR WIDTH="100%" size="1" noshade style="margin-top: -2px">
<HR WIDTH="100%" size="4" noshade style="margin-top: -10px">
<PAGE>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Israeli Companies Law provides that an acquisition of shares in a public
company must be made by means of a tender offer, if as a result of the acquisition,
the purchaser would become a holder of 25% or more of the voting power at
general meetings, and no other shareholder owns a 25% stake in the Company.
Similarly, the Israeli Companies Law provides that an acquisition of shares in
a public  company must be made by means
of a tender offer if, as a result of the acquisition, the purchaser would
become a holder of 45% or more of the voting power at general meetings, unless
someone else already holds 45% of the voting power. An acquisition from a 25% or
45% holder, which results in the purchaser becoming a 25% or 45% holder
respectively, does not require a tender offer. An exception to the tender offer
requirement may also apply when the additional voting power is obtained by
means of a private placement approved by the general meeting of shareholders.
These rules also do not apply if the acquisition is made by way of a merger. </FONT></P>

<P><FONT SIZE=2>The Israeli
Companies Law also provides specific rules and procedures for the acquisition
of shares held by minority shareholders, if the majority shareholder shall hold
more than 90% of the outstanding shares.</FONT></P>

<P><FONT SIZE=2>These laws may
have the effect of delaying or deterring a change in control of the Company,
thereby limiting the opportunity for shareholders to receive a premium for
their shares and possibly affecting the price that some investors are willing
to pay for the Company&#146;s securities. </FONT></P>

<P><FONT SIZE=2><B><I>All of our directors
and most of our officers are non-U.S. residents and enforceability of civil
liabilities against them is uncertain. </I></B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All
of our directors and most of our officers reside outside of the United States.
Service of process upon them may be difficult to effect within the United
States. Furthermore, because the majority of our assets are located in Israel,
any judgment obtained in the United States against us or any of our directors
and non- U.S. officers may not be collectible within the United States. </FONT></P>

<P ALIGN=CENTER><A NAME=A104></A><FONT SIZE=2><B>FORWARD-LOOKING
STATEMENTS</B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This prospectus contains
forward-looking statements that are intended to be, and are hereby identified as, forward
looking statements for the purposes of the safe harbor provisions of the Private
Securities Reform Act of 1995. These statements address, among other things: our strategy;
the anticipated development of our products; the results of completed acquisitions and our
ability to make future acquisitions, our anticipated use of proceeds; our projected
capital expenditures and liquidity; our development of additional revenue sources; our
development and expansion of relationships; the market acceptance of our products; and our
technological advancement. Actual results could differ materially from those anticipated
in these forward-looking statements as a result of various factors, including all the
risks discussed above and elsewhere in this prospectus. You should therefore not rely on
these forward-looking statements, which are applicable only as of the date hereof. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We
urge you to consider that statements which use the terms &#147;believe&#148;, &#147;do not
believe&#148;, &#147;expect&#148;, &#147;plan&#148;, &#147;intend&#148;, &#147;estimate&#148;, &#147;anticipate&#148;,
&#147;projections&#148;,
&#147;forecast&#148; and similar expressions are intended to identify forward-looking
statements. These statements reflect our current views with respect to future
events and are based on assumptions and are subject to risks and uncertainties.
Except as required by applicable law, including the federal securities laws of
the United States, we do not intend to update or revise any forward-looking
statements, whether as a result of new information, future events or otherwise.
We disclaim any obligation to publicly revise any such statements to reflect
any change in expectations or in events, conditions, or circumstances on which
any such statements may be based. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Market
data and forecasts used in this prospectus have been obtained from independent
industry sources. We have not independently verified the data obtained from
these sources and we cannot assure you of the accuracy or completeness of the
data. Forecasts and other forward-looking information obtained from these
sources are subject to the same qualifications and additional uncertainties accompanying
any estimates of future market size. </FONT></P>

<P ALIGN=CENTER><FONT SIZE=2>15</FONT></P>

<HR WIDTH="100%" size="1" noshade style="margin-top: -2px">
<HR WIDTH="100%" size="4" noshade style="margin-top: -10px">
<PAGE>

<P ALIGN=CENTER><A NAME=A105></A><FONT SIZE=2><B>CAPITALIZATION</B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
table below sets forth our condesed consolidated current liabilities and
capitalization at March 31, 2008 on an actual basis. This table was prepared in
accordance with the U.S. Generally Accepted Accounting Principles. The
financial data is derived from our unaudited consolidated financial statements
as of March 31, 2008. </FONT></P>

<P ALIGN=CENTER><FONT SIZE=2><B>Consolidated Capitalization<BR></B><B>(in US thousands of dollars)</B></FONT></P>

<TABLE  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="65%" style="margin-left:5%">
<TR style="font-size:1px">
<TD WIDTH="65%" VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD WIDTH="4%" VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD WIDTH="3%" VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD WIDTH="17%" VALIGN=BOTTOM>
<P ALIGN=RIGHT>&nbsp;</P>
</TD>
<TD WIDTH="8%" VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1><B>As of March 31, 2008</B></FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="3" VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1><B>Actual (unaudited)</B></FONT></P>
</TD>

</TR>
<TR>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM BGCOLOR="#CCEEFF">
<P><FONT SIZE=2><B><U>Short term
  debt</U></B></FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#CCEEFF">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#CCEEFF">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#CCEEFF">
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#CCEEFF">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=2>Secured</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN="RIGHT"><FONT SIZE=2>6,847</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM BGCOLOR="#CCEEFF">
<P><FONT SIZE=2>Unsecured</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#CCEEFF">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#CCEEFF">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#CCEEFF">
<P ALIGN="RIGHT"><FONT SIZE=2>13,284</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#CCEEFF">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="75%" NOSHADE COLOR=GRAY ALIGN=RIGHT>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=2>Total short term debt</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN="RIGHT"><FONT SIZE=2>20,131</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM BGCOLOR="#CCEEFF">
<P><FONT SIZE=2><B><U>Long term
  debt</U></B></FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#CCEEFF">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#CCEEFF">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#CCEEFF">
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#CCEEFF">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=2>Secured</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN="RIGHT"><FONT SIZE=2>3,144</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM BGCOLOR="#CCEEFF">
<P><FONT SIZE=2>Unsecured</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#CCEEFF">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#CCEEFF">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#CCEEFF">
<P ALIGN="RIGHT"><FONT SIZE=2>4,378</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#CCEEFF">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="75%" NOSHADE COLOR=GRAY ALIGN=RIGHT>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=2>Total long term debt</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN="RIGHT"><FONT SIZE=2>7,522</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM BGCOLOR="#CCEEFF">
<P><FONT SIZE=2><B><U>Shareholders
  equity</U></B></FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#CCEEFF">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#CCEEFF">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#CCEEFF">
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#CCEEFF">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=2>Share capital: Ordinary
  Shares issued 11,357,778</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN="RIGHT"><FONT SIZE=2>11,179</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>

<TR BGCOLOR="#CCEEFF">
<TD VALIGN=BOTTOM>
<P><FONT SIZE=2>Additional paid-in Capital</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN="RIGHT"><FONT SIZE=2>55,659</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM >
<P><FONT SIZE=2>Accumulated deficit</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P ALIGN="RIGHT"><FONT SIZE=2>(51,056</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P ALIGN="LEFT"><FONT SIZE=2>)</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="75%" NOSHADE COLOR=GRAY ALIGN=RIGHT>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR BGCOLOR="#CCEEFF">
<TD VALIGN=BOTTOM>
<P><FONT SIZE=2>Total shareholders equity</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=2>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN="RIGHT"><FONT SIZE=2>$&nbsp;&nbsp;&nbsp;&nbsp;15,782</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
</TABLE>


<P ALIGN=CENTER><FONT SIZE=2>16</FONT></P>

<HR WIDTH="100%" size="1" noshade style="margin-top: -2px">
<HR WIDTH="100%" size="4" noshade style="margin-top: -10px">
<PAGE>

<P ALIGN=CENTER><A NAME=A106></A><FONT SIZE=2><B>PRICE RANGE OF
OUR ORDINARY SHARES</B></FONT></P>

<P><FONT SIZE=2>Our ordinary
shares are listed and traded on the NASDAQ Global Market under the symbol
&#147;BOSC&#148;. In addition, in January 2002, our ordinary shares commenced trading on
the Tel Aviv Stock Exchange (TASE) under the symbol &#147;BOSC&#148;.</FONT></P>

<P><FONT SIZE=2>The following
table sets forth the high and low closing prices for our ordinary shares as
reported by NASDAQ and the TASE for the periods indicated. All share prices
have been retroactively adjusted to reflect the 1:4 reverse stock split
effected on May 29, 2003. </FONT></P>



<TABLE ALIGN=CENTER BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="10%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="2%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="21%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="3%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="12%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="3%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="12%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="3%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="13%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="3%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="13%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1><B>Period</B></FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1><B>NASDAQ</B></FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1><B>TASE</B></FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1><B>High ($)</B></FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1><B>Low ($)</B></FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1><B>High (NIS)</B></FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1><B>Low (NIS)</B></FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP BGCOLOR="#CCEEFF">
<P><FONT SIZE=2>2003</FONT></P>
</TD>
<TD VALIGN=TOP BGCOLOR="#CCEEFF">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP BGCOLOR="#CCEEFF">
<P><FONT SIZE=2>Annual</FONT></P>
</TD>
<TD VALIGN=TOP BGCOLOR="#CCEEFF">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP BGCOLOR="#CCEEFF">
<P><FONT SIZE=2>3.97</FONT></P>
</TD>
<TD VALIGN=TOP BGCOLOR="#CCEEFF">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP BGCOLOR="#CCEEFF">
<P><FONT SIZE=2>1.67</FONT></P>
</TD>
<TD VALIGN=TOP BGCOLOR="#CCEEFF">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP BGCOLOR="#CCEEFF">
<P><FONT SIZE=2>17.42</FONT></P>
</TD>
<TD VALIGN=TOP BGCOLOR="#CCEEFF">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP BGCOLOR="#CCEEFF">
<P><FONT SIZE=2>&nbsp;&nbsp;8.00</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>2004</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Annual</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>4.00</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>1.62</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>14.98</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&nbsp;&nbsp;8.89</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP BGCOLOR="#CCEEFF">
<P><FONT SIZE=2>2005</FONT></P>
</TD>
<TD VALIGN=TOP BGCOLOR="#CCEEFF">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP BGCOLOR="#CCEEFF">
<P><FONT SIZE=2>Annual</FONT></P>
</TD>
<TD VALIGN=TOP BGCOLOR="#CCEEFF">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP BGCOLOR="#CCEEFF">
<P><FONT SIZE=2>3.74</FONT></P>
</TD>
<TD VALIGN=TOP BGCOLOR="#CCEEFF">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP BGCOLOR="#CCEEFF">
<P><FONT SIZE=2>2.15</FONT></P>
</TD>
<TD VALIGN=TOP BGCOLOR="#CCEEFF">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP BGCOLOR="#CCEEFF">
<P><FONT SIZE=2>16.33</FONT></P>
</TD>
<TD VALIGN=TOP BGCOLOR="#CCEEFF">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP BGCOLOR="#CCEEFF">
<P><FONT SIZE=2>&nbsp;&nbsp;9.00</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>2006</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Annual</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>2.97</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>2.11</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>14.58</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&nbsp;&nbsp;9.64</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP BGCOLOR="#CCEEFF">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP BGCOLOR="#CCEEFF">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP BGCOLOR="#CCEEFF">
<P><FONT SIZE=2>First
 Quarter</FONT></P>
</TD>
<TD VALIGN=TOP BGCOLOR="#CCEEFF">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP BGCOLOR="#CCEEFF">
<P><FONT SIZE=2>2.97</FONT></P>
</TD>
<TD VALIGN=TOP BGCOLOR="#CCEEFF">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP BGCOLOR="#CCEEFF">
<P><FONT SIZE=2>2.39</FONT></P>
</TD>
<TD VALIGN=TOP BGCOLOR="#CCEEFF">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP BGCOLOR="#CCEEFF">
<P><FONT SIZE=2>14.58</FONT></P>
</TD>
<TD VALIGN=TOP BGCOLOR="#CCEEFF">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP BGCOLOR="#CCEEFF">
<P><FONT SIZE=2>10.87</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Second
 Quarter</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>2.84</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>2.55</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>13.08</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>11.27</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP BGCOLOR="#CCEEFF">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP BGCOLOR="#CCEEFF">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP BGCOLOR="#CCEEFF">
<P><FONT SIZE=2>Third
 Quarter</FONT></P>
</TD>
<TD VALIGN=TOP BGCOLOR="#CCEEFF">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP BGCOLOR="#CCEEFF">
<P><FONT SIZE=2>2.84</FONT></P>
</TD>
<TD VALIGN=TOP BGCOLOR="#CCEEFF">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP BGCOLOR="#CCEEFF">
<P><FONT SIZE=2>2.11</FONT></P>
</TD>
<TD VALIGN=TOP BGCOLOR="#CCEEFF">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP BGCOLOR="#CCEEFF">
<P><FONT SIZE=2>12.85</FONT></P>
</TD>
<TD VALIGN=TOP BGCOLOR="#CCEEFF">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP BGCOLOR="#CCEEFF">
<P><FONT SIZE=2>&nbsp;&nbsp;9.64</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Fourth
 Quarter</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>2.73</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>2.40</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>11.98</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>10.23</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP BGCOLOR="#CCEEFF">
<P><FONT SIZE=2>2007</FONT></P>
</TD>
<TD VALIGN=TOP BGCOLOR="#CCEEFF">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP BGCOLOR="#CCEEFF">
<P><FONT SIZE=2>Annual</FONT></P>
</TD>
<TD VALIGN=TOP BGCOLOR="#CCEEFF">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP BGCOLOR="#CCEEFF">
<P><FONT SIZE=2>2.90</FONT></P>
</TD>
<TD VALIGN=TOP BGCOLOR="#CCEEFF">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP BGCOLOR="#CCEEFF">
<P><FONT SIZE=2>1.90</FONT></P>
</TD>
<TD VALIGN=TOP BGCOLOR="#CCEEFF">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP BGCOLOR="#CCEEFF">
<P><FONT SIZE=2>12.48</FONT></P>
</TD>
<TD VALIGN=TOP BGCOLOR="#CCEEFF">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP BGCOLOR="#CCEEFF">
<P><FONT SIZE=2>&nbsp;&nbsp;7.01</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>First
 Quarter</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>2.63</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>2.50</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>12.48</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>10.60</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP BGCOLOR="#CCEEFF">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP BGCOLOR="#CCEEFF">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP BGCOLOR="#CCEEFF">
<P><FONT SIZE=2>Second
 Quarter</FONT></P>
</TD>
<TD VALIGN=TOP BGCOLOR="#CCEEFF">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP BGCOLOR="#CCEEFF">
<P><FONT SIZE=2>2.90</FONT></P>
</TD>
<TD VALIGN=TOP BGCOLOR="#CCEEFF">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP BGCOLOR="#CCEEFF">
<P><FONT SIZE=2>2.55</FONT></P>
</TD>
<TD VALIGN=TOP BGCOLOR="#CCEEFF">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP BGCOLOR="#CCEEFF">
<P><FONT SIZE=2>11.60</FONT></P>
</TD>
<TD VALIGN=TOP BGCOLOR="#CCEEFF">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP BGCOLOR="#CCEEFF">
<P><FONT SIZE=2>10.25</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Third
 Quarter</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>2.74</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>2.30</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>11.85</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&nbsp;&nbsp;9.50</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP BGCOLOR="#CCEEFF">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP BGCOLOR="#CCEEFF">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP BGCOLOR="#CCEEFF">
<P><FONT SIZE=2>Fourth
 Quarter</FONT></P>
</TD>
<TD VALIGN=TOP BGCOLOR="#CCEEFF">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP BGCOLOR="#CCEEFF">
<P><FONT SIZE=2>2.49</FONT></P>
</TD>
<TD VALIGN=TOP BGCOLOR="#CCEEFF">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP BGCOLOR="#CCEEFF">
<P><FONT SIZE=2>1.90</FONT></P>
</TD>
<TD VALIGN=TOP BGCOLOR="#CCEEFF">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP BGCOLOR="#CCEEFF">
<P><FONT SIZE=2>10.90</FONT></P>
</TD>
<TD VALIGN=TOP BGCOLOR="#CCEEFF">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP BGCOLOR="#CCEEFF">
<P><FONT SIZE=2>&nbsp;&nbsp;7.01</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>December</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>2.27</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>1.90</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>10.50</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&nbsp;&nbsp;7.01</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP BGCOLOR="#CCEEFF">
<P><FONT SIZE=2>2008</FONT></P>
</TD>
<TD VALIGN=TOP BGCOLOR="#CCEEFF">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP BGCOLOR="#CCEEFF">
<P><FONT SIZE=2>January</FONT></P>
</TD>
<TD VALIGN=TOP BGCOLOR="#CCEEFF">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP BGCOLOR="#CCEEFF">
<P><FONT SIZE=2>2.05</FONT></P>
</TD>
<TD VALIGN=TOP BGCOLOR="#CCEEFF">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP BGCOLOR="#CCEEFF">
<P><FONT SIZE=2>1.77</FONT></P>
</TD>
<TD VALIGN=TOP BGCOLOR="#CCEEFF">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP BGCOLOR="#CCEEFF">
<P><FONT SIZE=2>&nbsp;&nbsp;7.52</FONT></P>
</TD>
<TD VALIGN=TOP BGCOLOR="#CCEEFF">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP BGCOLOR="#CCEEFF">
<P><FONT SIZE=2>&nbsp;&nbsp;6.50</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>February</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>1.92</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>1.78</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&nbsp;&nbsp;7.75</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&nbsp;&nbsp;7.43</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP BGCOLOR="#CCEEFF">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP BGCOLOR="#CCEEFF">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP BGCOLOR="#CCEEFF">
<P><FONT SIZE=2>March</FONT></P>
</TD>
<TD VALIGN=TOP BGCOLOR="#CCEEFF">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP BGCOLOR="#CCEEFF">
<P><FONT SIZE=2>1.92</FONT></P>
</TD>
<TD VALIGN=TOP BGCOLOR="#CCEEFF">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP BGCOLOR="#CCEEFF">
<P><FONT SIZE=2>1.48</FONT></P>
</TD>
<TD VALIGN=TOP BGCOLOR="#CCEEFF">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP BGCOLOR="#CCEEFF">
<P><FONT SIZE=2>&nbsp;&nbsp;7.75</FONT></P>
</TD>
<TD VALIGN=TOP BGCOLOR="#CCEEFF">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP BGCOLOR="#CCEEFF">
<P><FONT SIZE=2>&nbsp;&nbsp;7.75</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>April</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>1.69</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>1.46</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&nbsp;&nbsp;6.58</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&nbsp;&nbsp;6.58</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP BGCOLOR="#CCEEFF">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP BGCOLOR="#CCEEFF">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP BGCOLOR="#CCEEFF">
<P><FONT SIZE=2>May</FONT></P>
</TD>
<TD VALIGN=TOP BGCOLOR="#CCEEFF">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP BGCOLOR="#CCEEFF">
<P><FONT SIZE=2>1.63</FONT></P>
</TD>
<TD VALIGN=TOP BGCOLOR="#CCEEFF">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP BGCOLOR="#CCEEFF">
<P><FONT SIZE=2>1.45</FONT></P>
</TD>
<TD VALIGN=TOP BGCOLOR="#CCEEFF">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP BGCOLOR="#CCEEFF">
<P><FONT SIZE=2>&nbsp;&nbsp;6.58</FONT></P>
</TD>
<TD VALIGN=TOP BGCOLOR="#CCEEFF">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP BGCOLOR="#CCEEFF">
<P><FONT SIZE=2>&nbsp;&nbsp;4.28</FONT></P>
</TD>
</TR>
</TABLE>

<P ALIGN=CENTER><FONT SIZE=2>17</FONT></P>

<HR WIDTH="100%" size="1" noshade style="margin-top: -2px">
<HR WIDTH="100%" size="4" noshade style="margin-top: -10px">
<PAGE>

<P ALIGN=CENTER><A NAME=A107></A><FONT SIZE=2><B>USE OF
PROCEEDS</B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All
of the proceeds from the sale of the ordinary shares offered under this
prospectus by selling shareholders are for the account of the selling
shareholder. Accordingly, we will not receive any proceeds from the sales of
these shares other than the exercise price payable to us upon the exercise of
warrants held by the selling shareholder. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Unless
we state otherwise in a prospectus supplement, we will use the net proceeds for
the sale of sureties we offer pursuant to this prospectus for general corporate
purposes. From time to time m we may evaluate the possibility of acquiring business,
products and technologies, and we may use a portion of the proceeds as
consideration for acquisitions. Until we use net proceeds for these purposes,
we may invest them in interest-bearing deposits. </FONT></P>

<P ALIGN=CENTER><A NAME=A108></A><FONT SIZE=2><B>DILUTION</B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We
will set forth in a prospectus supplement the following information regarding
any material dilution of the equity interests of investors purchasing
securities in an offering under this prospectus: </FONT></P>

<TABLE ALIGN=CENTER BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="90%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=3 FACE="wingdings">&#159;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>the net
 tangible book value per share of our equity securities before and after the
 offering;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=3 FACE="wingdings">&#159;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>the amount
 of the increase in such net tangible book value per share attributable to the
 cash payments made by purchasers in the offering; and</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=3 FACE="wingdings">&#159;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>the amount
 of the immediate dilution from the public offering price which will be
 absorbed by such purchasers.</FONT></P>
</TD>
</TR>
</TABLE>

<P ALIGN=CENTER><A NAME=A109></A><FONT SIZE=2><B>SELLING
SHAREHOLDERS</B></FONT></P>

<P><FONT SIZE=2>This
prospectus relates to the offering by selling shareholders of up to  1,736,796
ordinary shares as follows: </FONT></P>

<TABLE ALIGN=CENTER BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="90%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2> </FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=3 FACE="wingdings">&#159;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>226,415 ordinary shares that were
issued in a private placement in June 2007. The ordinary shares were issued at a price per
share of $2.65.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2> </FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=3 FACE="wingdings">&#159;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>833,560
 ordinary shares that were issued in a private placement in December 2007. The
 ordinary shares were issued at a price per share of $2.40. </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2> </FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=3 FACE="wingdings">&#159;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>25,007
 ordinary shares that were issued to Catalyst Fund. These share were issued as
 fees for services rendered to the Company by an affiliate of Catalyst Fund in
 connection with the December 2007 private placement. </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=3 FACE="wingdings">&#159;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2> up
 to 541,814 ordinary shares issuable to the selling shareholders upon the
 exercise of warrants that were issued in the abovementioned private
 placement. The exercise price of the warrants is $2.76 per ordinary share.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2> </FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=3 FACE="wingdings">&#159;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>110,000
 ordinary shares that were issued to T.F.E. Holdings Ltd. in June 2008. These
 share were issued as fees for services rendered to the Company in connection
 with the acquisition of the assets of Dimex Systems (1988) Ltd. </FONT></P>
</TD>
</TR>
</TABLE>

<P ALIGN=CENTER><FONT SIZE=2>18</FONT></P>

<HR WIDTH="100%" size="1" noshade style="margin-top: -2px">
<HR WIDTH="100%" size="4" noshade style="margin-top: -10px">
<PAGE>

<P><FONT SIZE=2>The table
below sets forth certain information concerning the number of ordinary shares
and warrants owned by the selling shareholder as of June 15, 2008, and the
number of ordinary shares and warrants that may be offered from time to time by
the selling shareholder under this prospectus. Because the selling shareholder
may offer all or some portion of the ordinary shares, BOS has assumed for the
purposes of the table below that the selling shareholder will sell all of the
ordinary shares it has acquired from us. </FONT></P>

<TABLE ALIGN=CENTER BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="25%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="2%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="2%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="8%">
<P ALIGN=CENTER>&nbsp;</P>
</TD>
<TD WIDTH="2%">
<P ALIGN=CENTER>&nbsp;</P>
</TD>
<TD WIDTH="2%">
<P ALIGN=CENTER>&nbsp;</P>
</TD>
<TD WIDTH="2%">
<P ALIGN=CENTER>&nbsp;</P>
</TD>
<TD WIDTH="6%">
<P ALIGN=CENTER>&nbsp;</P>
</TD>
<TD WIDTH="2%">
<P ALIGN=CENTER>&nbsp;</P>
</TD>
<TD WIDTH="3%">
<P ALIGN=CENTER>&nbsp;</P>
</TD>
<TD WIDTH="2%">
<P ALIGN=CENTER>&nbsp;</P>
</TD>
<TD WIDTH="7%">
<P ALIGN=CENTER>&nbsp;</P>
</TD>
<TD WIDTH="2%">
<P ALIGN=CENTER>&nbsp;</P>
</TD>
<TD WIDTH="2%">
<P ALIGN=CENTER>&nbsp;</P>
</TD>
<TD WIDTH="1%">
<P ALIGN=CENTER>&nbsp;</P>
</TD>
<TD WIDTH="7%">
<P ALIGN=CENTER>&nbsp;</P>
</TD>
<TD WIDTH="1%">
<P ALIGN=CENTER>&nbsp;</P>
</TD>
<TD WIDTH="2%">
<P ALIGN=CENTER>&nbsp;</P>
</TD>
<TD WIDTH="3%">
<P ALIGN=CENTER>&nbsp;</P>
</TD>
<TD WIDTH="6%">
<P ALIGN=CENTER>&nbsp;</P>
</TD>
<TD WIDTH="3%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="7" VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1><B>Shares Owned or Underlying<BR>
 Convertible Securities<BR>
 Prior to Offering</B></FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="3" VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1><B>Shares Being<BR>
 Offered (3)</B></FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="7" VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1><B>Shares Beneficially<BR>
 Owned After the<BR>
 Offering</B></FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="7" VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="3" VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="7" VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="3" VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=1><B>Number (1)</B></FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="3" VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=1><B>Percent (1)</B></FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="3" VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="3" VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=1><B>Number</B></FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="3" VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=1><B>Percent</B></FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="3" VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>
</TD>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="3" VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>
</TD>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="3" VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="3" VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>
</TD>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="3" VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="3" VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="3" VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="3" VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="3" VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="3" VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP BGCOLOR="#CCEEFF">
<P><FONT SIZE=2><B>SG Private Banking<BR>
(Suisse) S.A.</b><BR> Avenue de Rumine 20<BR> CH -1001 Lausanne <BR>Switzerland </FONT></P>
</TD>
<TD VALIGN=TOP BGCOLOR="#CCEEFF">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP BGCOLOR="#CCEEFF">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD BGCOLOR="#CCEEFF">
<P ALIGN=CENTER><FONT SIZE=2>226,415</FONT></P>
</TD>
<TD BGCOLOR="#CCEEFF">
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD BGCOLOR="#CCEEFF">
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD BGCOLOR="#CCEEFF">
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD BGCOLOR="#CCEEFF">
<P ALIGN=CENTER><FONT SIZE=2>2.0%</FONT></P>
</TD>
<TD BGCOLOR="#CCEEFF">
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD BGCOLOR="#CCEEFF">
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD BGCOLOR="#CCEEFF">
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD BGCOLOR="#CCEEFF">
<P ALIGN=CENTER><FONT SIZE=2>226,415</FONT></P>
</TD>
<TD BGCOLOR="#CCEEFF">
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD BGCOLOR="#CCEEFF">
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD BGCOLOR="#CCEEFF">
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD BGCOLOR="#CCEEFF">
<P ALIGN="RIGHT"><FONT SIZE=2>-</FONT></P>
</TD>
<TD BGCOLOR="#CCEEFF">
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD BGCOLOR="#CCEEFF">
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD BGCOLOR="#CCEEFF">
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD BGCOLOR="#CCEEFF">
<P ALIGN=CENTER><FONT SIZE=2>-</FONT></P>
</TD>
<TD VALIGN=TOP BGCOLOR="#CCEEFF">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD ALIGN=CENTER><P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD ALIGN=CENTER><P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD ALIGN=CENTER><P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD ALIGN=CENTER><P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD ALIGN=CENTER><P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD ALIGN=CENTER><P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD ALIGN=CENTER><P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD ALIGN=CENTER><P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD ALIGN=CENTER><P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD ALIGN=CENTER><P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD ALIGN=CENTER><P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD ALIGN=CENTER><P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD ALIGN=CENTER><P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD ALIGN=CENTER><P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD ALIGN=CENTER><P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD ALIGN=CENTER><P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD ALIGN=CENTER><P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP >
<P><FONT SIZE=2><B>Catalyst Fund</B> <BR>
 3 Daniel Frish St<BR>
 Tel Aviv 64731,<BR>
 Israel</FONT></P>
</TD>
<TD VALIGN=TOP >
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP >
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD >
<P ALIGN=CENTER><FONT SIZE=2>2,595,159</FONT></P>
</TD>
<TD >
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD >
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD >
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD >
<P ALIGN=CENTER><FONT SIZE=2>21.7%</FONT></P>
</TD>
<TD >
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD >
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD >
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD >
<P ALIGN=CENTER><FONT SIZE=2>712,694</FONT></P>
</TD>
<TD >
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD >
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD >
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD >
<P ALIGN="RIGHT"><FONT SIZE=2>1,882,465</FONT></P>
</TD>
<TD >
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD >
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD >
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD >
<P ALIGN=CENTER><FONT SIZE=2>15.8%</FONT></P>
</TD>
<TD VALIGN=TOP >
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD ALIGN=CENTER><P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD ALIGN=CENTER><P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD ALIGN=CENTER><P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD ALIGN=CENTER><P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD ALIGN=CENTER><P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD ALIGN=CENTER><P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD ALIGN=CENTER><P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD ALIGN=CENTER><P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD ALIGN=CENTER><P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD ALIGN=CENTER><P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD ALIGN=CENTER><P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD ALIGN=CENTER><P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD ALIGN=CENTER><P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD ALIGN=CENTER><P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD ALIGN=CENTER><P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD ALIGN=CENTER><P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD ALIGN=CENTER><P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP BGCOLOR="#CCEEFF">
<P><FONT SIZE=2><B>K.G.M.
 Provident<BR>
 Fund and<BR>
 Hishtalmut Fund<BR>
 </B>2 Kaufman St.,<BR>
 Tel Aviv 68012<BR>
 Israel (4)</FONT></P>
</TD>
<TD VALIGN=TOP BGCOLOR="#CCEEFF">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP BGCOLOR="#CCEEFF">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD ALIGN=CENTER BGCOLOR="#CCEEFF"><P><FONT SIZE=2>&nbsp;&nbsp;329,267</FONT></P>
</TD>
<TD ALIGN=CENTER BGCOLOR="#CCEEFF"><P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD ALIGN=CENTER BGCOLOR="#CCEEFF"><P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD ALIGN=CENTER BGCOLOR="#CCEEFF"><P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD ALIGN=CENTER BGCOLOR="#CCEEFF"><P><FONT SIZE=2>2.8%</FONT></P>
</TD>
<TD ALIGN=CENTER BGCOLOR="#CCEEFF"><P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD ALIGN=CENTER BGCOLOR="#CCEEFF"><P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD ALIGN=CENTER BGCOLOR="#CCEEFF"><P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD ALIGN=CENTER BGCOLOR="#CCEEFF"><P><FONT SIZE=2>313,467</FONT></P>
</TD>
<TD ALIGN=CENTER BGCOLOR="#CCEEFF"><P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD ALIGN=CENTER BGCOLOR="#CCEEFF"><P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD ALIGN=CENTER BGCOLOR="#CCEEFF"><P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD ALIGN=CENTER BGCOLOR="#CCEEFF"><P ALIGN="RIGHT"><FONT SIZE=2>15,800</FONT></P>
</TD>
<TD ALIGN=CENTER BGCOLOR="#CCEEFF"><P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD ALIGN=CENTER BGCOLOR="#CCEEFF"><P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD ALIGN=CENTER BGCOLOR="#CCEEFF"><P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD ALIGN=CENTER BGCOLOR="#CCEEFF"><P><FONT SIZE=2>&nbsp;&nbsp;0.1%</FONT></P>
</TD>
<TD VALIGN=TOP BGCOLOR="#CCEEFF">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD ALIGN=CENTER><P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD ALIGN=CENTER><P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD ALIGN=CENTER><P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD ALIGN=CENTER><P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD ALIGN=CENTER><P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD ALIGN=CENTER><P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD ALIGN=CENTER><P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD ALIGN=CENTER><P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD ALIGN=CENTER><P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD ALIGN=CENTER><P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD ALIGN=CENTER><P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD ALIGN=CENTER><P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD ALIGN=CENTER><P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD ALIGN=CENTER><P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD ALIGN=CENTER><P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD ALIGN=CENTER><P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD ALIGN=CENTER><P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP >
<P><FONT SIZE=2><B>Yuvalim
 Provident<BR>
 and Hishtalmut<BR>
 Fund<BR>
 </B>2 Kaufman St.,<BR>
 Tel Aviv 68012<BR>
 Israel(4)</FONT></P>
</TD>
<TD VALIGN=TOP  >
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP  >
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD >
<P ALIGN=CENTER><FONT SIZE=2>&nbsp;&nbsp;&nbsp;291,305</FONT></P>
</TD>
<TD>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD>
<P ALIGN=CENTER><FONT SIZE=2>2.5%</FONT></P>
</TD>
<TD>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD>
<P ALIGN=CENTER><FONT SIZE=2>181,566</FONT></P>
</TD>
<TD>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD>
<P ALIGN="RIGHT"><FONT SIZE=2>109,739</FONT></P>
</TD>
<TD>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD>
<P ALIGN=CENTER><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;1%</FONT></P>
</TD>
<TD VALIGN=TOP >
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD ALIGN=CENTER><P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD ALIGN=CENTER><P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD ALIGN=CENTER><P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD ALIGN=CENTER><P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD ALIGN=CENTER><P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD ALIGN=CENTER><P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD ALIGN=CENTER><P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD ALIGN=CENTER><P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD ALIGN=CENTER><P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD ALIGN=CENTER><P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD ALIGN=CENTER><P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD ALIGN=CENTER><P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD ALIGN=CENTER><P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD ALIGN=CENTER><P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD ALIGN=CENTER><P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD ALIGN=CENTER><P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD ALIGN=CENTER><P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP BGCOLOR="#CCEEFF">
<P><FONT SIZE=2><B>Yuvalim
 Pension<BR>
 Fund<BR>
 </B>2 Kaufman St.,<BR>
 Tel Aviv 68012<BR>
 Israel(4)</FONT></P>
</TD>
<TD VALIGN=TOP BGCOLOR="#CCEEFF">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP BGCOLOR="#CCEEFF">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD ALIGN=CENTER BGCOLOR="#CCEEFF"><P><FONT SIZE=2>&nbsp;&nbsp;440,798</FONT></P>
</TD>
<TD ALIGN=CENTER BGCOLOR="#CCEEFF"><P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD ALIGN=CENTER BGCOLOR="#CCEEFF"><P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD ALIGN=CENTER BGCOLOR="#CCEEFF"><P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD ALIGN=CENTER BGCOLOR="#CCEEFF"><P><FONT SIZE=2>3.8%</FONT></P>
</TD>
<TD ALIGN=CENTER BGCOLOR="#CCEEFF"><P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD ALIGN=CENTER BGCOLOR="#CCEEFF"><P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD ALIGN=CENTER BGCOLOR="#CCEEFF"><P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD ALIGN=CENTER BGCOLOR="#CCEEFF"><P><FONT SIZE=2>192,654</FONT></P>
</TD>
<TD ALIGN=CENTER BGCOLOR="#CCEEFF"><P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD ALIGN=CENTER BGCOLOR="#CCEEFF"><P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD ALIGN=CENTER BGCOLOR="#CCEEFF"><P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD ALIGN=CENTER BGCOLOR="#CCEEFF"><P ALIGN="RIGHT"><FONT SIZE=2>248,144</FONT></P>
</TD>
<TD ALIGN=CENTER BGCOLOR="#CCEEFF"><P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD ALIGN=CENTER BGCOLOR="#CCEEFF"><P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD ALIGN=CENTER BGCOLOR="#CCEEFF"><P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD ALIGN=CENTER BGCOLOR="#CCEEFF"><P><FONT SIZE=2>&nbsp;&nbsp;2.1%</FONT></P>
</TD>
<TD VALIGN=TOP BGCOLOR="#CCEEFF">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP >
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD ALIGN=CENTER><P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD ALIGN=CENTER><P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD ALIGN=CENTER><P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD ALIGN=CENTER><P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD ALIGN=CENTER><P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD ALIGN=CENTER><P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD ALIGN=CENTER><P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD ALIGN=CENTER><P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD ALIGN=CENTER><P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD ALIGN=CENTER><P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD ALIGN=CENTER><P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD ALIGN=CENTER><P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD ALIGN=CENTER><P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD ALIGN=CENTER><P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD ALIGN=CENTER><P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD ALIGN=CENTER><P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD ALIGN=CENTER><P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP >
<P><FONT SIZE=2><B>T.F.E
 Holdings<BR>
 Ltd.<BR>
 </B>5 Havradim St.<BR>
 Ganey Yehuda,<BR>
 POB 6567, 56905<BR>
 Israel</FONT></P>
</TD>
<TD VALIGN=TOP >
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP >
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD >
<P ALIGN=CENTER><FONT SIZE=2>&nbsp;110,000</FONT></P>
</TD>
<TD >
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD >
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD>
<P ALIGN=CENTER><FONT SIZE=2>1.0%</FONT></P>
</TD>
<TD>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD >
<P ALIGN=CENTER><FONT SIZE=2>110,000</FONT></P>
</TD>
<TD >
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD >
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD >
<P ALIGN="RIGHT"><FONT SIZE=2>-</FONT></P>
</TD>
<TD >
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD>
<P ALIGN=CENTER><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
</TABLE>

<BR>

<TABLE ALIGN=CENTER BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="95%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(1)</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Calculated
 based upon 11,467,778 ordinary shares outstanding as of June 15, 2008. </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(2)</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&#147;Catalyst
 Fund&#148; refers collectively to Catalyst Fund L.P., Catalyst Fund II L.P. and
 Catalyst Fund III, L.P., all of which are limited partnerships organized and
 existing under the laws of the State of Israel, and which share the same
 general partner, Catalyst Investments L.P. </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(3)</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Number of
 shares includes the maximum number of shares that may be received by the
 selling shareholders upon the full exercise of warrants they hold into
 ordinary shares. </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(4)</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>K.G.M.
 Provident Fund and Hishtalmut Fund, Yuvalim Provident and Hishtalmut Fund and
 Yuvalim Pension Fund are affiliated companies.</FONT></P>
</TD>
</TR>
</TABLE>
<BR>



<P ALIGN=CENTER><FONT SIZE=2>19</FONT></P>

<HR WIDTH="100%" size="1" noshade style="margin-top: -2px">
<HR WIDTH="100%" size="4" noshade style="margin-top: -10px">
<PAGE>

<P ALIGN=CENTER><A NAME=A110></A><FONT SIZE=2><B>DESCRIPTION OF
ORDINARY SHARES</B></FONT></P>

<P><FONT SIZE=2>The following
is a summary description of our Ordinary Shares under our Articles of
Association. </FONT></P>

<P><FONT SIZE=2><I>Dividend and Liquidation Rights. </I>All
holders of paid-up Ordinary Shares of the Company have an equal right to
participate in a distribution of (i) dividends, whether by cash or by bonus
shares; (ii) Company assets; and (iii) the Company&#146;s surplus assets upon
winding up, all pro rata to the nominal value of the shares held by them. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Board of Directors may issue shares and other securities, which are convertible
or exercisable into shares, up to the limit of the Company&#146;s authorized share
capital. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Company&#146;s Board of Directors is the organ authorized to decide upon the
distribution of dividends or bonus shares. </FONT></P>

<P><FONT SIZE=2><I>Voting, Shareholders&#146; Meetings, Notices and
Resolutions. </I>Holders of paid-up Ordinary Shares have
one vote for each share held on all matters submitted to a vote of
shareholders. Such voting rights may be affected in the future by the grant of
any special voting rights to the holders of a class of shares with preferential
rights. </FONT></P>

<P><FONT SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
quorum required for a general meeting of shareholders (whether annual or
special) consists of at least two shareholders present in person or by
proxy/voting instrument and holding, or representing, at least 33<SUP>1</SUP>/<SUB>3</SUB>% of the
voting rights of the issued share capital. A meeting adjourned for lack of
quorum shall be postponed by one week, to the same day, time and place, or to a
later time if stated in the invitation to the meeting or in the notice of the
meeting. The quorum for the commencement of the adjourned meeting shall be any
number of participants. </FONT> </P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Unless
otherwise determined by the Israeli Companies Law 1999 or the Company&#146;s
Articles of Association, a resolution requires approval by the holders of a
majority of the shares represented at the meeting, in person or by proxy, and
voting thereon. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Companies Law 1999 requires that certain transactions, actions and arrangements
be approved by shareholders, including (i) arrangements with a director as to
the terms of his office and compensation and arrangements for insurance,
exemption and indemnity of directors; (ii) certain Extraordinary Transactions
(as defined in the Companies Law) of the Company with its controlling
shareholders or any Extraordinary Transaction in which a controlling
shareholder has a personal interest; (iii) certain private placements; and (iv)
any action or Extraordinary Transaction in which the majority of the members of
the Board of Directors have a personal interest. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Each
shareholder of record is entitled to receive at least a 21 day prior notice of
shareholders&#146; meetings. The accidental omission to give notice of a meeting to
any member, or the non receipt of notice sent to such member, shall not
invalidate the proceedings at such meeting. For purposes of determining the
shareholders entitled to notice and to vote, the Board of Directors may fix a
record date subject to the provisions of the law. Currently, Israeli law
provides that the record date not be any earlier than 40 days prior to the
meeting. </FONT></P>

<P><FONT SIZE=2><I>Transfer of Shares. </I>Fully
paid Ordinary Shares may be transferred freely. The transfer of Ordinary Shares
not fully paid up requires the approval of the Board of Directors. </FONT></P>

<P><FONT SIZE=2><I>Modification of Class Rights. </I>Subject
to the provisions of any law, the rights attached to any class (unless
otherwise provided by the terms of issue of such class), such as voting, rights
to dividends and the like, may be altered after a resolution is passed by the
Company, with the approval of a resolution passed by a majority of the voting
power present by person or proxy and voting hereon at a general meeting of the
holders of the shares of such class, or the written agreement of all the class
holders. The rights vested in the holders of shares of a particular class that
were issued with special rights shall not be deemed to have been altered by the
creation or issue of further shares ranking equally with them, unless otherwise
provided in such shares&#146; issue terms. </FONT></P>

<P><FONT SIZE=2><I>Election of Directors</I>.
The Company&#146;s directors are elected by the shareholders at a shareholders&#146;
meeting. The Ordinary Shares do not have cumulative voting rights in the
election of directors. The holders of Ordinary Shares conferring more than 50%
of the voting power present by person or by proxy at the shareholders&#146; meeting,
have the power to elect the directors. The directors elected shall hold office
until the next annual meeting, or sooner if they cease to hold office pursuant
to the provisions of the Company&#146;s Articles. In addition, the Board of
Directors may appoint a director (to fill a vacancy or otherwise) between
shareholder meetings, and such appointment shall be valid until the next annual meeting or
until such appointee ceases to hold office pursuant to the provisions of the
Company&#146;s Articles.
</FONT></P>

<P ALIGN=CENTER><FONT SIZE=2>20</FONT></P>

<HR WIDTH="100%" size="1" noshade style="margin-top: -2px">
<HR WIDTH="100%" size="4" noshade style="margin-top: -10px">
<PAGE>

<P><FONT SIZE=2>In compliance with the Companies Law, the Company has two
external directors. The external directors are also appointed by the
shareholders and their term of office is three years. </FONT></P>

<P ALIGN=CENTER><A NAME=A11></A><A NAME=A111></A><FONT SIZE=2><B>DESCRIPTION
OF UNITS</B></FONT></P>

<P STYLE='MARGIN-RIGHT:0IN; MARGIN-LEFT:0IN'><FONT SIZE=2>We may, from time to time,
issue units comprised of one or more of the other securities that may be
offered under this prospectus, in any combination. Each unit will be issued so
that the holder of the unit is also the holder of each security included in the
unit. Thus, the holder of a unit will have the rights and obligations of a
holder of each included security. The unit agreement under which a unit is
issued may provide that the securities included in the unit may not be held or
transferred separately at any time, or at any time before a specified date. </FONT></P>

<TABLE ALIGN=CENTER BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="90%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2>Any
 applicable prospectus supplement will describe: </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=3 FACE="wingdings">&#159;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2> the material
 terms of the units and of the securities comprising the units, including
 whether and under what circumstances those securities may be held or
 transferred separately; </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT size=3 FACE="wingdings">&#159;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2> any material
 provisions relating to the issuance, payment, settlement, transfer or
 exchange of the units or of the securities comprising the units; and </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=3  FACE="wingdings">&#159;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>any material
 provisions of the governing unit agreement that differ from those described
 above.</FONT></P>
</TD>
</TR>
</TABLE>

<P ALIGN=CENTER><A NAME=A112></A><FONT SIZE=2><B>DESCRIPTION OF
WARRANTS</B></FONT></P>

<P><FONT SIZE=2>Warrants may
be issued independently or together with any other securities and may be
attached to, or separate from, such securities. Each series of warrants will be
issued under a separate warrant agreement. The terms of any warrants to be
issued and a description of the material provisions of the applicable warrant
agreement will be set forth in the applicable prospectus supplement. </FONT></P>

<P STYLE='MARGIN-RIGHT:0IN; MARGIN-LEFT:0IN'><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
applicable prospectus supplement will describe the following terms of any
warrants in respect of which the prospectus is being delivered: </FONT></P>

<TABLE ALIGN=CENTER BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="90%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=3  FACE="wingdings">&#159;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2> the title of such warrants; </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=3  FACE="wingdings">&#159;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2> the aggregate number of such warrants; </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=3  FACE="wingdings">&#159;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2> the price or prices at which such warrants
 will be issued; </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=3  FACE="wingdings">&#159;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2> the currency or
 currencies, in which the price of such warrants will be payable; </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=3  FACE="wingdings">&#159;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2> the securities or
 other rights; </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=3  FACE="wingdings">&#159;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2> the date on which
 the right to exercise such warrants shall commence and the date on which such
 right shall expire; </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=3  FACE="wingdings">&#159;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2> if applicable,
 the minimum or maximum amount of such warrants which may be exercised at any
 one time; </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=3  FACE="wingdings">&#159;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2> if applicable,
 the designation and terms of the securities with which such warrants are
 issued and the number of such warrants issued with each such security; </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=3  FACE="wingdings">&#159;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>if
 applicable, the date on and after which such warrants and the related
 securities will be separately transferable;</FONT></P>
</TD>
</TR>
</TABLE>

<P ALIGN=CENTER><FONT SIZE=2>21</FONT></P>

<HR WIDTH="100%" size="1" noshade style="margin-top: -2px">
<HR WIDTH="100%" size="4" noshade style="margin-top: -10px">
<PAGE>
<BR>
<TABLE ALIGN=CENTER BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="90%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=3  FACE="wingdings">&#159;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2> information with
 respect to book-entry procedures, if any; </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=3  FACE="wingdings">&#159;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2> any material
 Israeli and U.S. federal income tax consequences; </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=3  FACE="wingdings">&#159;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2> the anti-dilution
 provisions of the warrants; and</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=3  FACE="wingdings">&#159;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2> any other terms
 of such warrants, including terms, procedures and limitations relating to the
 exchange and exercise of such warrants. </FONT></P>
</TD>
</TR>
</TABLE>

<P ALIGN=CENTER><A NAME=A113></A><FONT SIZE=2><B>PLAN OF
DISTRIBUTION</B></FONT></P>

<P STYLE='MARGIN-RIGHT:0IN; MARGIN-LEFT:0IN'><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We
and the selling shareholders, and any of their respective pledgees, donees,
assignees, transferees, and successors in interest, may sell any or all of
their securities from time to time on any stock exchange or automated
interdealer quotation system on which the securities are listed, in the
over-the-counter market, in privately negotiated transactions or otherwise, at
fixed prices that may be changed, at market prices prevailing at the time of
sale, at prices related to prevailing market prices or at prices otherwise
negotiated. We and the selling shareholders may sell the securities by one or
more of the following methods, without limitation:</FONT></P>

<TABLE ALIGN=CENTER BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="90%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=3  FACE="wingdings">&#159;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2> block trades in
 which the broker or dealer so engaged will attempt to sell the securities as
 agent but may position and resell a portion of the block as principal to
 facilitate the transaction; </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=3  FACE="wingdings">&#159;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2> purchases by a
 broker or dealer as principal and resale by the broker or dealer for its own
 account pursuant to this prospectus; </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=3  FACE="wingdings">&#159;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2> an exchange
 distribution in accordance with the rules of any stock exchange on which the
 securities are listed; </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=3  FACE="wingdings">&#159;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2> ordinary
 brokerage transactions and transactions in which the broker-dealer solicits
 purchases, which may include long sales or short sales effected after the
 effective date of the prospectus of which this registration statement is
 part; </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=3  FACE="wingdings">&#159;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2> privately
 negotiated transactions; </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=3  FACE="wingdings">&#159;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&#147;at the market&#148;
 or through market makers or into an existing market for the shares;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=3  FACE="wingdings">&#159;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>through the
 writing or settlement of options or other hedging transactions on the
 securities, whether through an options exchange or otherwise; </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=3  FACE="wingdings">&#159;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2> through the
 distribution of the securities by the selling shareholder to its partners,
 members or shareholders; </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=3  FACE="wingdings">&#159;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2> one or more
 underwritten offerings on a firm commitment or best efforts basis; </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=3  FACE="wingdings">&#159;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2> any combination
 of any of these methods of sale; and </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=3  FACE="wingdings">&#159;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2> any other method permitted pursuant to applicable law.</FONT></P>
</TD>
</TR>
</TABLE>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
selling shareholders may also transfer the securities by gift. We do not know
of any arrangements by the selling shareholders for the sale of any of the
securities. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We
and any of the selling shareholders may engage brokers and dealers, and any
brokers or dealers may arrange for other brokers or dealers to participate in
effecting sales of the securities. These brokers, dealers or underwriters may
act as principals, or as agents. Broker-dealers may agree to sell a specified
number of the securities at a stipulated price per security. If the
broker-dealer is unable to sell securities acting as agent, it may purchase as
principal any unsold securities at the stipulated price. Broker-dealers who
acquire securities as principals may thereafter resell the securities from time
to time in transactions in any stock
exchange or automated interdealer quotation system on which the securities are
then listed, at prices and on terms then prevailing at the time of sale, at
prices related to the then-current market price or in negotiated transactions.
Broker-dealers may use block transactions and sales to and through
broker-dealers, including transactions of the nature described above. The
selling shareholders may also sell the securities in accordance with Rule 144
under the Securities Act, rather than pursuant to this prospectus, regardless
of whether the securities are covered by this prospectus. </FONT></P>

<P ALIGN=CENTER><FONT SIZE=2>22</FONT></P>

<HR WIDTH="100%" size="1" noshade style="margin-top: -2px">
<HR WIDTH="100%" size="4" noshade style="margin-top: -10px">
<PAGE>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;From
time to time, a selling shareholder may pledge, hypothecate or grant a security
interest in some or all of the securities owned by it. The pledgees, secured
parties or persons to whom the securities have been hypothecated will, upon
foreclosure in the event of default, be deemed to be selling shareholders. The
number of the selling shareholders&#146; securities offered under this prospectus
will decrease as and when it takes such actions. The plan of distribution for a
selling shareholder&#146;s securities will otherwise remain unchanged. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To
the extent required under the Securities Act, the aggregate amount of the
Company&#146;s or the selling shareholders&#146; securities being offered and the terms
of the offering, the names of any agents, brokers, dealers or underwriters and
any applicable commission with respect to a particular offer will be set forth
in an accompanying prospectus supplement. Any underwriters, dealers, brokers or
agents participating in the distribution of the securities may receive
compensation in the form of underwriting discounts, concessions, commissions or
fees from the selling shareholders and/or purchasers of selling shareholders&#146;
securities, for whom they may act (which compensation as to a particular
broker-dealer might be in excess of customary commissions). </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
selling shareholders and any underwriters, brokers, dealers or agents that
participate in the distribution of the securities may be deemed to be
&#147;underwriters&#148; within the meaning of the Securities Act, and any discounts,
concessions, commissions or fees received by them and any profit on the resale
of the securities sold by them may be deemed to be underwriting discounts and
commissions. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
selling shareholders may enter into hedging transactions with broker-dealers
and the broker-dealers may engage in short sales of the securities in the
course of hedging the positions they assume with the selling shareholders,
including, without limitation, in connection with distributions of the
securities by those broker-dealers. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
anti-manipulation provisions of Regulation M under the Exchange Act will apply
to purchases and sales of ordinary shares by the selling shareholders. Under
Regulation M, the selling shareholders or their agents may not bid for,
purchase, or attempt to induce any person to bid for or purchase our ordinary
shares while the selling shareholders are distributing ordinary shares covered
by this prospectus. The selling shareholders are not permitted to cover short
sales by purchasing ordinary shares while the distribution is taking place.
Furthermore, Regulation M provides for restrictions on market-making activities
by persons engaged in the distribution of the ordinary shares. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
selling shareholders may enter into option or other transactions with broker-dealers
that involve the delivery of the securities offered hereby to the
broker-dealers, who may then resell or otherwise transfer those securities. The
selling shareholders may also loan or pledge the securities offered hereby to a
broker-dealer and the broker-dealer may sell the securities offered hereby so
loaned or upon a default may sell or otherwise transfer the pledged securities
offered hereby. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If
underwriters are used in an offering of offered securities, such offered
securities will be acquired by the underwriters for their own account and may
be resold from time to time in one or more transactions, including negotiated
transactions, at a fixed public offering price or at varying prices determined
at the time of sale. The securities may be either offered to the public through
underwriting syndicates represented by one or more managing underwriters or by
one or more underwriters without a syndicate. Unless otherwise set forth in the
prospectus supplement, the underwriters will not be obligated to purchase
offered securities unless specified conditions are satisfied, and if the
underwriters do purchase any offered securities, they will purchase all offered
securities. </FONT></P>

<P ALIGN=CENTER><FONT SIZE=2>23</FONT></P>

<HR WIDTH="100%" size="1" noshade style="margin-top: -2px">
<HR WIDTH="100%" size="4" noshade style="margin-top: -10px">
<PAGE>

<P STYLE='MARGIN-RIGHT:0IN; MARGIN-LEFT:0IN'><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
connection with underwritten offerings of the offered securities and in
accordance with applicable law and industry practice, underwriters may
over-allot or effect transactions that stabilize, maintain or otherwise affect
the market price of the offered securities at levels above those that might
otherwise prevail in the open market, including by entering stabilizing bids,
effecting syndicate covering transactions or imposing penalty bids, each of
which is described below. </FONT></P>

<TABLE ALIGN=CENTER BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="90%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=3  FACE="wingdings">&#159;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>A
 stabilizing bid means the placing of any bid, or the effecting of any purchase,
 for the purpose of pegging, fixing or maintaining the price of a security. </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=3  FACE="wingdings">&#159;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>A syndicate
 covering transaction means the placing of any bid on behalf of the
 underwriting syndicate or the effecting of any purchase to reduce a short
 position created in connection with the offering. </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=3  FACE="wingdings">&#159;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>A penalty
 bid means an arrangement that permits the managing underwriter to reclaim a
 selling concession from a syndicate member in connection with the offering
 when offered securities originally sold by the syndicate members are
 purchased in syndicate covering transactions. </FONT></P>
</TD>
</TR>
</TABLE>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We
have agreed to indemnify in certain circumstances the selling shareholders of
the securities covered by the registration statement, against certain
liabilities, including liabilities under the Securities Act. Certain selling
shareholders have agreed to indemnify us in certain circumstances against
certain liabilities, including liabilities under the Securities Act. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
securities offered hereby on behalf of the Selling Shareholders were originally
issued to the selling shareholders pursuant to an exemption from the
registration requirements of the Securities Act. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We
have agreed to pay certain fees and expenses in connection with this offering,
not including any selling commissions. We will not receive any proceeds from
sales of any securities by the selling shareholders. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We
cannot assure you that the selling shareholders will sell all or any of the
securities offered for sale under this prospectus. </FONT></P>

<P ALIGN=CENTER><A NAME=A114></A><FONT SIZE=2><B>DIVIDEND
POLICY</B></FONT></P>

<P><FONT SIZE=2>The Company
does not currently have a dividend policy. The declaration and payment of any
cash dividends in the future will be determined by the Board of Directors in
light of the conditions existing at that time. This will include our earnings
and financial condition. </FONT></P>

<P><FONT SIZE=2>The credit
agreements that we entered into with our banks prohibit the payment of
dividends. Also, we may only pay cash dividends in any fiscal year, out of
&#147;profits&#148;, as defined under Israeli law. </FONT></P>

<P ALIGN=CENTER><A NAME=A115></A><FONT SIZE=2><B>OFFERING
EXPENSES</B></FONT></P>

<P STYLE='MARGIN-RIGHT:0IN; MARGIN-LEFT:0IN'><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
following is a statement of expenses in connection with the distribution of the
securities registered. All amounts shown are estimates except for the SEC
registration fee. The estimates do not include expenses related to offerings of
particular securities. Each prospectus supplement describing an offering of
securities will reflect the estimated expenses related to the offering of
securities under that prospectus supplement. </FONT></P>

<TABLE ALIGN=CENTER BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="88%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="12%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR BGCOLOR="#CCEEFF">
<TD VALIGN=TOP>
<P><FONT SIZE=2>SEC registration fees</FONT></P>
</TD>
<TD VALIGN=TOP>
<P align=right><FONT SIZE=2>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;374</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P ><FONT SIZE=2>Legal fees and expenses</FONT></P>
</TD>
<TD VALIGN=TOP>
<P align=right><FONT SIZE=2>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12,000</FONT></P>
</TD>
</TR>
<TR  BGCOLOR="#CCEEFF">
<TD VALIGN=TOP>
<P><FONT SIZE=2>Printing expenses</FONT></P>
</TD>
<TD VALIGN=TOP>
<P align=right><FONT SIZE="2"><U>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2,500</U> </FONT></P>
</TD>
</TR>
<TR>
      <TD> &nbsp;</TD>
      <TD> </TD></TR>
<TR>
<TD VALIGN=TOP>
<P ><FONT SIZE=2>TOTAL</FONT></P>
</TD>
<TD VALIGN=TOP>
<P align=right><FONT SIZE=2>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14,874</FONT></P>
</TD>
</TR>
</TABLE>

<P ALIGN=CENTER><FONT SIZE=2>24</FONT></P>

<HR WIDTH="100%" size="1" noshade style="margin-top: -2px">
<HR WIDTH="100%" size="4" noshade style="margin-top: -10px">
<PAGE>

<P ALIGN=CENTER><FONT SIZE=2><B>V<A NAME=A116></A>ALIDITY OF SECURITIES</B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
validity of the securities offered in this prospectus, will be passed upon for
us by Amit, Pollak, Matalon &amp; Co., our Israeli counsel. </FONT></P>

<P ALIGN=CENTER><FONT SIZE=2><B>E<A NAME=A117></A>XPERTS</B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our
consolidated financial statements, included in our Annual Report on Form 20-F
for the year ended December 31, 2007, have been audited by Kost Forer Gabbay
&amp; Kasierer, independent registered public accounting firm and a member of
Ernst &amp; Young Global as set forth in their report thereon included therein
and incorporated herein by reference. Such consolidated statements are
incorporated herein by reference in reliance upon such report given on the
authority of such firm as experts in auditing and accounting. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
consolidated financial statements of our consolidated subsidiary Lynk USA Inc.,
for the year ended December 31, 2007, have been audited by Arik Eshel, CPA
&amp; Assoc., PC, independent registered public accounting firm, as set forth
in their report thereon included in our Annual Report on Form 20-F for the year
ended December 31, 2007. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
financial statements of our consolidated subsidiary Summit Radio Corp., for the
year ended December 31, 2007, have been audited by Arik Eshel, CPA &amp;
Assoc., PC, independent registered public accounting firm, as set forth in
their report thereon included in our Form 6-K filed with the SEC on June 30,
2008. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
financial statements of Dimex Systems (1988) Ltd., for the year ended December
31, 2007, have been audited by Chaikin, Cohen, Rubin, independent registered
public accounting firm, as set forth in their report thereon included in our
Form 6-K filed with the SEC on June 30, 2008. </FONT></P>

<P ALIGN=CENTER><FONT SIZE=2><B>W<A NAME=A118></A>HERE YOU CAN FIND MORE
INFORMATION</B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We
have filed with the SEC a registration statement on Form F-3 under the
Securities Act, with respect to the securities offered by this prospectus.
However, as is permitted by the rules and regulations of the SEC, this
prospectus, which is part of our registration statement on Form F-3, omits
certain non-material information, exhibits, schedules and undertakings set
forth in the registration statement. For further information about us, and the
securities offered by this prospectus, please refer to the registration
statement. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We
are subject to the reporting requirements of the Securities Exchange Act of
1934, as amended, or the Exchange Act, that are applicable to a foreign private
issuer. In accordance with the Exchange Act, we file reports, including annual
reports on Form 20-F by June 30 of each year. We also furnish to the SEC under
cover of Form 6-K material information required to be made public in Israel,
filed with and made public by any stock exchange or distributed by us to our
shareholders. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
registration statement on Form F-3 of which this prospectus forms a part,
including the exhibits and schedules thereto, and reports and other information
filed by us with the SEC may be inspected without charge and copied at
prescribed rates at the SEC&#146;s Public Reference Room at 100 F Street, N.E.,
Washington, D.C. 20549. Copies of this material are also available by mail from
the Public Reference Section of the SEC, at 100 F. Street, N.E., Washington
D.C. 20549, at prescribed rates. The public may obtain information on the
operation of the Public Reference Room by calling the SEC at 1-800-SEC-0330.
The SEC maintains an Internet site that contains reports, proxy and information
statements, and other information regarding issuers, such as us, that file
electronically with the SEC (http://www.sec.gov). </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As
a foreign private issuer, we are exempt from the rules under the Exchange Act
prescribing the furnishing and content of proxy statements to shareholders and
our officers, directors and principal shareholders are exempt from the &#147;short-swing
profits&#148; reporting and liability provisions contained in Section 16 of the
Exchange Act and related Exchange Act rules. </FONT></P>

<P ALIGN=CENTER><FONT SIZE=2>25</FONT></P>

<HR WIDTH="100%" size="1" noshade style="margin-top: -2px">
<HR WIDTH="100%" size="4" noshade style="margin-top: -10px">
<PAGE>

<P ALIGN=CENTER><FONT SIZE=2><B>I<A NAME=A119></A>NCORPORATION OF CERTAIN
DOCUMENTS BY REFERENCE</B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
SEC allows us to &#147;incorporate by reference&#148; the information we file with or submit
to it, which means that we can disclose important information to you by
referring to those documents. The information incorporated by reference is
considered to be part of this prospectus, and later information filed with or
submitted to the SEC will update and supersede this information. We incorporate
by reference into this prospectus the documents listed below: </FONT></P>

<TABLE ALIGN=CENTER BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="90%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(a)</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Our annual
 report on Form 20-F for the fiscal year ended December 31, 2007, filed with
 the SEC on June 30, 2008. (SEC File No. 001-14184); </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(b)</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>The
 description of our ordinary shares contained in our registration statement on
 Form 8-A filed with the SEC on April 1, 1996, as amended by the description
 of our ordinary shares contained in a Form 6-K filed on August 22, 2006; and </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(c)</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Our current
 report on form 6-K filed with the SEC on May 22, 2008 (such incorporation is
 limited to our historical GAAP financial information for the three months
 ended March 31, 2008 and March 31, 2007 contained therein). </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(d)</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Our current
 report on Form 6-K filed with the SEC on June 30, 2008. </FONT></P>
</TD>
</TR>
</TABLE>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
addition, all subsequent annual reports on Form 20-F filed prior to the
termination of this offering and any reports on Form 6-K subsequently submitted
to the SEC or portions thereof that we specifically identify in such forms as
being incorporated by reference into the registration statement of which this
prospectus forms a part, shall be considered to be incorporated into this
prospectus by reference and shall be considered a part of this prospectus from
the date of filing or submission of such documents. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As
you read the above documents, you may find inconsistencies in information from
one document to another. If you find inconsistencies between the documents and
this prospectus, you should rely on the statements made in the most recent
document. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We
will deliver to each person (including any beneficial owner) to whom this
prospectus has been delivered a copy of any or all of the information that has
been incorporated by reference into this prospectus but not delivered with this
prospectus. We will provide this information upon written or oral request, and
at no cost to the requester. Requests should be directed to: </FONT></P>

<TABLE ALIGN=CENTER BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="95%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>B.O.S.
 Better Online Solutions Ltd. </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>20 Freiman
 Street </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Rishon
 LeZion, 75100, Israel </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Tel.:&nbsp;&nbsp;&nbsp; (+972)
 3-954-1000 </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Fax:&nbsp;&nbsp;&nbsp; (+972)
 3-954-1001 </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Attn.: &nbsp;&nbsp;Eyal
 Cohen, CFO </FONT></P>
</TD>
</TR>
</TABLE>

<P ALIGN=CENTER><FONT SIZE=2>26</FONT></P>

<HR WIDTH="100%" size="1" noshade style="margin-top: -2px">
<HR WIDTH="100%" size="4" noshade style="margin-top: -10px">
<PAGE>

<P ALIGN=CENTER><FONT SIZE=2><B>E<A NAME=A120></A>NFORCEABILITY OF CIVIL
LIABILITIES</B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All
of our directors and most of our officers reside outside of the United States.
It may be difficult to enforce civil liabilities under the Securities Act and
the Exchange Act in original actions instituted in Israel. However, subject to
specified time limitations, Israeli courts may enforce a United States final
executory judgment in a civil matter, including a monetary or compensatory
judgment in a non-civil matter, obtained after due process before a court of
competent jurisdiction according to the laws of the state in which the judgment
is given and the rules of private international law currently prevailing in
Israel. The rules of private international law currently prevailing in Israel
do not prohibit the enforcement of a judgment by Israeli courts provided that: </FONT></P>

<TABLE ALIGN=CENTER BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="90%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT size=3 FACE="wingdings">&#159;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>the judgment
 is enforceable in the state in which it was given; </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT size=3 FACE="wingdings">&#159;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>adequate
 service of process has been effected and the defendant has had a reasonable
 opportunity to present his arguments and evidence; </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT size=3 FACE="wingdings">&#159;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>the judgment
 and the enforcement of the judgment are not contrary to the law, public
 policy, security or sovereignty of the State of Israel; </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT size=3 FACE="wingdings">&#159;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>the judgment
 was not obtained by fraud and does not conflict with any other valid judgment
 in the same matter between the same parties; and </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT size=3 FACE="wingdings">&#159;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>an action
 between the same parties in the same matter is not pending in any Israeli
 court at the time the lawsuit is instituted in the foreign court. </FONT></P>
</TD>
</TR>
</TABLE>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our
subsidiary, Summit Radio Corp. is our agent to receive service of process in
any action against us in any competent court of the United States arising out
of this offering or any purchase or sale of securities in connection with this
offering. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If
a foreign judgment is enforced by an Israeli court, it generally will be
payable in Israeli currency, which can then be converted into non-Israeli
currency and transferred out of Israel. The usual practice in an action before
an Israeli court to recover an amount in a non-Israeli currency is for the
Israeli court to issue a judgment for the equivalent amount in Israeli currency
at the rate of exchange in force on the date of the judgment, but the judgment
debtor may make payment in foreign currency. Pending collection, the amount of
the judgment of an Israeli court stated in Israeli currency ordinarily will be
linked to the Israeli consumer price index plus interest at an annual statutory
rate set by Israeli regulations prevailing at the time. Judgment creditors must
bear the risk of unfavorable exchange rates. </FONT></P>

<P ALIGN=CENTER><FONT SIZE=2>27</FONT></P>

<HR WIDTH="100%" size="1" noshade style="margin-top: -2px">
<HR WIDTH="100%" size="4" noshade style="margin-top: -10px">
<PAGE>

<P ALIGN=CENTER><FONT SIZE=2><B>BOS BETTER ONLINE SOLUTIONS LTD. </B></FONT></P>

<P ALIGN=CENTER><FONT SIZE=2><B>$6,250,000 and 1,736,796 of our
Ordinary Shares Offered by Selling Shareholders  </B></FONT></P>

<TABLE ALIGN=CENTER BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="100%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=2><B>PROSPECTUS</B></FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=GRAY ALIGN=CENTER>
</TD>
</TR>
</TABLE>

<P ALIGN=CENTER><FONT SIZE=2>28</FONT></P>

<HR WIDTH="100%" size="1" noshade style="margin-top: -2px">
<HR WIDTH="100%" size="4" noshade style="margin-top: -10px">
<PAGE>

<P ALIGN=CENTER><FONT SIZE=2><B>PART II</B></FONT></P>

<P ALIGN=CENTER><FONT SIZE=2><B>INFORMATION NOT REQUIRED IN PROSPECTUS</B></FONT></P>

<P ALIGN=CENTER><FONT SIZE=2><B>ITEM 8. INDEMNIFICATION OF DIRECTORS AND
OFFICERS</B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Consistent
with the provisions of the Israeli Companies Law, 1999 (the &#147;Companies Law&#148;),
the amended Articles of the Registrant include provisions permitting the
Registrant to procure insurance coverage for its &#147;office holders&#148;, exempt them
from certain liabilities and indemnify them, to the maximum extent permitted by
law. An &#147;office holder&#148; is defined in the Companies Law and the Articles as a
director, managing director, chief business manager, executive vice president,
vice president, other manager reporting directly to the managing director and
any other person assuming the responsibilities of any of the foregoing
positions without regard to such person&#146;s title. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;INSURANCE
</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Under
the Companies Law, a company may obtain insurance for any of its office holders
for: (i) a breach of his duty of care to the company or to another person; (ii)
a breach of his duty of loyalty to the company provided that the office holder
acted in good faith and had reasonable cause to assume that his act would not
prejudice the company&#146;s interests; or (iii) a financial liability imposed upon
him in favor of another person concerning an act preformed by him in his
capacity as an office holder. </FONT></P>

 <P><FONT SIZE=2>The Registrant has obtained directors&#146; and
officers&#146; liability insurance covering its officers and directors and those of
its subsidiaries. </FONT></P>



<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;INDEMNIFICATION
</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Companies Law provides that a company may indemnify an officer holder against:
(i) a financial liability imposed on him in favor of another person by any
judgment concerning an act preformed in his capacity as an office holder; (ii)
reasonable litigation expenses, including attorneys&#146; fees, expended by the
office holder or charged to him by a court relating to an act preformed in his
capacity as an office holder in connection with: (a) proceedings the company
institutes against him or instituted on its behalf or by another person; (b) a
criminal charge from which he was acquitted; (c) a criminal charge in which he
was convicted for a criminal offence that does not require proof of criminal
intent; and (d) an investigation or a proceeding instituted against him by an
authority competent to administrate such an investigation or proceeding that
ended without the filing of an indictment against the office holder and, either
without any financial obligation imposed on the office holder in lieu of
criminal proceedings; or with financial obligation imposed on him in lieu of
criminal proceedings, in a crime which does not require proof of criminal
intent. The Articles of the Registrant authorize the Registrant to indemnify
its office holders to the fullest extent permitted under the law. The Companies
Law also authorizes a company to undertake in advance to indemnify an office
holder with respect to events specified above, provided that, with respect to
indemnification under sub-section (i) above, the undertaking: (a) is limited to
events which the board of directors determines can be anticipated, based on the
activity of the Company at the time the undertaking is given; (b) is limited in
amount or criteria determined by the board of directors to be reasonable for
the circumstances; and (c) specifies the abovementioned events, amounts or
criteria. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We
have entered into indemnification agreements with directors and some officers
providing for indemnification under certain circumstances for acts and
omissions which may not be covered (or not be covered in full) by any
directors&#146; and officers&#146; liability insurance. Such indemnification agreement
appears in exhibit 4.1 of our Annual Report on Form 20-F filed with the
Securities and Exchange Commission on June 28, 2006. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;EXEMPTION
</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Under
the Companies Law, an Israeli company may not exempt an office holder from
liability for a breach of his duty of loyalty, but may exempt in advance an
office holder from his liability to the company, in whole or in part, for a
breach of his duty of care, provided that in no event shall the office holder
be exempt from any liability for damages caused as a result of a breach of his
duty of care to the company in the event of a &#147;distribution&#148; (as defined in the
Companies Law). The Articles authorize Registrant to exempt any office holder
from liability to the Registrant to the extent permitted by law.</FONT></P>

<P ALIGN=CENTER><FONT SIZE=2>29</FONT></P>

<HR WIDTH="100%" size="1" noshade style="margin-top: -2px">
<HR WIDTH="100%" size="4" noshade style="margin-top: -10px">
<PAGE>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Both
the Companies Law and the Articles provide that the Registrant may not exempt
or indemnify an office holder nor enter into an insurance contract which would
provide coverage for liability incurred as a result of any of the following:
(a) a breach by the office holder of his duty of loyalty (however, the
Registrant may insure and indemnify against such breach if the office holder
acted in good faith and had a reasonable basis to assume that the act would not
harm the Registrant); (b) a breach by the office holder of his duty of care if
the breach was done intentionally or recklessly, unless made in negligence only;
(c) any act done with the intent to derive an illegal personal benefit; or (d)
any fine or monetary penalty levied against the office holder. </FONT></P>

<P ALIGN=CENTER><FONT SIZE=2>30</FONT></P>

<HR WIDTH="100%" size="1" noshade style="margin-top: -2px">
<HR WIDTH="100%" size="4" noshade style="margin-top: -10px">
<PAGE>

<P ALIGN=CENTER><FONT SIZE=2><B>ITEM 9. EXHIBITS</B></FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="10%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="2%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="87%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=1><B>Exhibit No.</B></FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=1><B>Description</B></FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>3.1*</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Articles of
  Association.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>4.1**</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Share Purchase Agreement and
Registration Rights Agreement, dated as of June 24, 2007, by and between SG Private
Banking (Suisse) SA and the Registrant. </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>4.2***</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Securities Purchase Agreement, dated as of the December 10, 2007, by and between certain investors and the
Registrant, and Registration Rights Agreement dated as of the December 10, 2007 by and between certain
investors and the Registrant.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>4.3***</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Form of
  Warrant dated as of December 31, 2007 issued by the Registrant to certain
  investors.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>4.4**</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Finder Fee
  Letter by and between the Company and T.F.E. Holdings Ltd., dated June 3,
  2008. </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>4.5****</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Form of
  share certificate.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>4.6<SUP>&#135;</SUP></FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Form of
  Share Purchase Warrant.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>5.1**</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Opinion of
  Amit, Pollak, Matalon &amp; Co. Israeli counsel for B.O.S Better Online
  Solutions Ltd., as to the validity of the ordinary shares.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>23.1**</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Consent of
  Amit, Pollak, Matalon &amp; Co. (included in Exhibit 5.1).</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>23.2**</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Consent of
  Kost Forer Gabbay &amp; Kasierer, a Member Firm of Ernst &amp; Young Global.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>23.3**</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Consents of
  Arik Eshel, CPA &amp; Assoc., PC. </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>23.4**</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Consent of
  Chaikin, Cohen, Rubin &amp; Co. </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>24.1**</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Power of
  Attorney (included on signature page).</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD COLSPAN="3" VALIGN=TOP>
<P><HR NOSHADE WIDTH=120 COLOR=GRAY ALIGN=LEFT SIZE=1>
</TD>
</TR>
</TABLE>

<BR>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="95%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>*</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Incorporated
  by reference to Exhibit 1.2 of the Company&#146;s Annual Report on Form 20-F filed
  with the SEC on June 28, 2006</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>**</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Filed herewith</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>***</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2> Incorporated
  by reference to the Company&#146;s Annual Report on Form 20-F filed with the SEC
  on June 30, 2008.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>****</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Previously
  filed with the SEC on November 24, 2003 as Exhibit 4.1 to the Company&#146;s
  Registration Statement on Form S-8, SEC File Number 333-110696, and
  incorporated herein by reference.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2><SUP>&#135;</SUP></FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>To be filed
  by amendment or as an exhibit to a report on Form 6-K and incorporated herein
  by reference.</FONT></P>
</TD>
</TR>
</TABLE>

<P ALIGN=CENTER><FONT SIZE=2><B>ITEM 10. UNDERTAKINGS</B></FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="85%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(a)</FONT></P>
</TD>
<TD COLSPAN="3" VALIGN=TOP>
<P><FONT SIZE=2>The
  undersigned registrant hereby undertakes:</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="3" VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(1)</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2>To file,
  during any period in which offers or sales are being made, a post-effective
  amendment to this registration statement:</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(i) To
  include any prospectus required by Section 10(a)(3) of the Securities Act of
  1933;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(ii) To
  reflect in the prospectus any facts or events arising after the effective
  date of the registration statement (or the most recent post- effective
  amendment thereof) which, individually or in the aggregate, represent a
  fundamental change in the information set forth in the registration
  statement. Notwithstanding the foregoing, any increase or decrease in volume
  of securities offered (if the total dollar value of securities offered would
  not exceed that which was registered) and any deviation from the low or high
  end of the estimated maximum offering range may be reflected in the form of
  prospectus filed with the Commission pursuant to Rule 424(b) if, in the
  aggregate, the changes in volume and price represent no more than a 20%
  change in the maximum aggregate offering price set forth in the &#147;Calculation
  of Registration Fee&#148; table in the effective registration statement;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(iii) To
  include any material information with respect to the plan of distribution not
  previously disclosed in the registration statement or any material change to
  such information in the registration statement;</FONT></P>
</TD>
</TR>
</TABLE>

<P ALIGN=CENTER><FONT SIZE=2>31</FONT></P>

<HR WIDTH="100%" size="1" noshade style="margin-top: -2px">
<HR WIDTH="100%" size="4" noshade style="margin-top: -10px">
<PAGE>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="85%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="3" VALIGN=TOP>
<P><FONT SIZE=2><I>provided, however,</I> that Paragraphs
  (a)(1)(i), (a)(1)(ii) and (a)(1)(iii) of this section do not apply if the
  registration statement is on Form S-3 or Form F-3 and the information
  required to be included in a post-effective amendment by those paragraphs is
  contained in reports filed with or furnished to the Commission by the
  registrant pursuant to section 13 or section 15(d) of the Securities Exchange
  Act of 1934 that are incorporated by reference in the registration statement,
  or is contained in a form of prospectus filed pursuant to Rule 424(b) that is
  part of the registration statement.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="3" VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(2)</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2>That, for
  the purpose of determining any liability under the Securities Act of 1933,
  each such post-effective amendment shall be deemed to be a new registration
  statement relating to the securities offered therein, and the offering of
  such securities at that time shall be deemed to be the initial bona fide
  offering thereof.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(3)</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2>To remove
  from registration by means of a post-effective amendment any of the
  securities being registered which remain unsold at the termination of the
  offering.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(4)</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2>To file a
  post-effective amendment to the registration statement to include any financial
  statements required by Item 8.A of Form 20-F at the start of any delayed
  offering or throughout a continuous offering. Financial statements and
  information otherwise required by Section 10(a)(3) of the Act need not be
  furnished, provided that the registrant includes in the prospectus, by means
  of a post-effective amendment, financial statements required pursuant to this
  paragraph (a)(4) and other information necessary to ensure that all other
  information in the prospectus is at least as current as the date of those
  financial statements. Notwithstanding the foregoing, with respect to
  registration statements on Form F-3, a post-effective amendment need not be
  filed to include financial statements and information required by Section
  10(a)(3) of the Act or Item 8.A of Form 20-F if such financial statements and
  information are contained in periodic reports filed with or furnished to the
  Commission by the registrant pursuant to Section 13 or Section l5(d) of the
  Securities Exchange Act of 1934 that are incorporated by reference in the
  Form F-3. </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(5)</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2>That, for
  the purpose of determining liability under the Securities Act of 1933 to any
  purchaser:</FONT></P>
</TD>
</TR>
</TABLE>

<BR>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="75%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(i)</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2>If the
  registrant is relying on Rule 430B:</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=2>A.</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Each
  prospectus filed by the registrant pursuant to Rule 424(b)(3) shall be deemed
  to be part of the registration statement as of the date the filed prospectus
  was deemed part of and included in the registration statement; and</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=2>B.</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Each
  prospectus required to be filed pursuant to Rule 424(b)(2), (b)(5), or (b)(7)
  as part of a registration statement in reliance on Rule 430B relating to an
  offering made pursuant to Rule 415(a)(1)(i), (vii), or (x) for the purpose of
  providing the information required by section 10(a) of the Securities Act of
  1933 shall be deemed to be part of and included in the registration statement
  as of the earlier of the date such form of prospectus is first used after
  effectiveness or the date of the first contract of sale of securities in the
  offering described in the prospectus. As provided in Rule 430B, for liability
  purposes of the issuer and any person that is at that date an underwriter,
  such date shall be deemed to be a new effective date of the registration
  statement relating to the securities in the registration statement to which
  that prospectus relates, and the offering of such securities at that time
  shall be deemed to be the initial bona fide offering thereof. Provided,
  however, that no statement made in a registration statement or prospectus
  that is part of the registration statement or made in a document incorporated
  or deemed incorporated by reference into the registration statement or
  prospectus that is part of the registration statement will, as to a purchaser
  with a time of contract of sale prior to such effective date, supersede or
  modify any statement that was made in the registration statement or
  prospectus that was part of the registration statement or made in any such
  document immediately prior to such effective date; or</FONT></P>
</TD>
</TR>
</TABLE>

<P ALIGN=CENTER><FONT SIZE=2>32</FONT></P>

<HR WIDTH="100%" size="1" noshade style="margin-top: -2px">
<HR WIDTH="100%" size="4" noshade style="margin-top: -10px">
<PAGE>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="5%" VALIGN=TOP>
<P ALIGN=CENTER>&nbsp;</P>
</TD>
<TD WIDTH="75%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(ii)</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2>If the
  registrant is subject to Rule 430C, each prospectus filed pursuant to Rule
  424(b) as part of a registration statement relating to an offering, other
  than registration statements relying on Rule 430B or other than prospectuses
  filed in reliance on Rule 430A, shall be deemed to be part of and included in
  the registration statement as of the date it is first used after
  effectiveness. Provided, however, that no statement made in a registration
  statement or prospectus that is part of the registration statement or made in
  a document incorporated or deemed incorporated by reference into the
  registration statement or prospectus that is part of the registration
  statement will, as to a purchaser with a time of contract of sale prior to
  such first use, supersede or modify any statement that was made in the
  registration statement or prospectus that was part of the registration
  statement or made in any such document immediately prior to such date of
  first use.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(6)</FONT></P>
</TD>
<TD COLSPAN="4" VALIGN=TOP>
<P><FONT SIZE=2>That, for
  the purpose of determining liability of the registrant under the Securities
  Act of 1933 to any purchaser in the initial distribution of the securities:
  The undersigned registrant undertakes that in a primary offering of
  securities of the undersigned registrant pursuant to this registration statement,
  regardless of the underwriting method used to sell the securities to the
  purchaser, if the securities are offered or sold to such purchaser by means
  of any of the following communications, the undersigned registrant will be a
  seller to the purchaser and will be considered to offer or sell such
  securities to such purchaser:</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="4" VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(i)</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2>Any
  preliminary prospectus or prospectus of the undersigned registrant relating
  to the offering required to be filed pursuant to Rule 424;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(ii)</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2>Any free writing
  prospectus relating to the offering prepared by or on behalf of the
  undersigned registrant or used or referred to by the undersigned registrant;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(iii)</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2>The portion
  of any other free writing prospectus relating to the offering containing
  material information about the undersigned registrant or its securities
  provided by or on behalf of the undersigned registrant; and</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(iv)</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2>Any other
  communication that is an offer in the offering made by the undersigned
  registrant to the purchaser.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(b)</FONT></P>
</TD>
<TD COLSPAN="5" VALIGN=TOP>
<P><FONT SIZE=2>The
  undersigned registrant hereby undertakes that, for purposes of determining
  any liability under the Securities Act of 1933, each filing of the
  registrant&#146;s annual report pursuant to Section 13(a) or Section 15(d) of the
  Securities Exchange Act of 1934 (and, where applicable, each filing of an
  employee benefit plan&#146;s annual report pursuant to Section l5(d) of the
  Securities Exchange Act of 1934) that is incorporated by reference in the
  registration statement shall be deemed to be a new registration statement
  relating to the securities offered therein, and the offering of such
  securities at that time shall be deemed to be the initial bona fide offering
  thereof.</FONT></P>
</TD>
</TR>
</TABLE>

<P ALIGN=CENTER><FONT SIZE=2>33</FONT></P>

<HR WIDTH="100%" size="1" noshade style="margin-top: -2px">
<HR WIDTH="100%" size="4" noshade style="margin-top: -10px">
<PAGE>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="95%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(c)</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Insofar as
  indemnification for liabilities arising under the Securities Act of 1933 may
  be permitted to the directors, officers and controlling persons of the
  registrant pursuant to the provisions described under &#147;Item 8.
  Indemnification of Directors and Officers&#148; above, or otherwise, the
  registrant has been advised that in the opinion of the Securities and
  Exchange Commission such indemnification is against public policy as
  expressed in the Act and is, therefore, unenforceable. In the event that a
  claim for indemnification against such liabilities (other than the payment by
  the registrant of expenses incurred or paid by a director, officer or
  controlling person of the registrant in the successful defense of any action,
  suit or proceeding) is asserted by such director, officer or controlling
  person in connection with the securities being registered, the registrant
  will, unless in the opinion of our counsel the matter has been settled by
  controlling precedent, submit to a court of appropriate jurisdiction the
  question whether such indemnification by it is against public policy as expressed
  in the Act and will be governed by the final adjudication of such issue.</FONT></P>
</TD>
</TR>
</TABLE>

<P ALIGN=CENTER><FONT SIZE=2>34</FONT></P>

<HR WIDTH="100%" size="1" noshade style="margin-top: -2px">
<HR WIDTH="100%" size="4" noshade style="margin-top: -10px">
<PAGE>

<P ALIGN=CENTER><FONT SIZE=2><B>SIGNATURES</B></FONT></P>

<P><FONT SIZE=2>Pursuant to
the requirements of the Securities Act of 1933, the registrant certifies that
it has reasonable grounds to believe that it meets all of the requirements for
filing on Form F-3 and has duly caused this Registration Statement to be signed
on its behalf by the undersigned, thereunto duly authorized, in Rishon LeZion,
in the State of Israel, on June 30, 2008. </FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="42%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="6%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="2%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="18%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="12%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="20%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="4" VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=2><B>B.O.S. Better Online Solutions Ltd.</B></FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="3" VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=gray ALIGN=CENTER>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=RIGHT><FONT SIZE="2"><B>By:</B> </FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&nbsp;&nbsp;/s/
  Shmuel Koren</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&nbsp;/s/ Eyal
  Cohen</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=gray ALIGN=CENTER>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=gray ALIGN=CENTER>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=RIGHT><FONT SIZE="2"><B>Name:</B> </FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&nbsp;&nbsp;Shmuel
  Koren</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&nbsp;&nbsp;Eyal Cohen</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=RIGHT><FONT SIZE="2"><B>Title:</B> </FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&nbsp;&nbsp;President
  and Chief<BR>
  &nbsp;&nbsp;Executive Officer</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&nbsp;&nbsp;Chief
  Financial<BR>
&nbsp;&nbsp;Officer</FONT></P>
</TD>
</TR>
</TABLE>

<P ALIGN=CENTER><FONT SIZE=2><B>POWER OF ATTORNEY</B></FONT></P>

<P><FONT SIZE=2>KNOW ALL
PERSONS BY THESE PRESENTS, that each individual whose signature appears below
constitutes and appoints Shmeul Koren and Eyal Cohen, and each of them, his or
her true and lawful attorneys-in-fact and agents with full power of
substitution and re-substitution, for him or her and in his or her name, place
and stead, in any and all capacities, to (i) act on, sign and file with the
Securities and Exchange Commission any and all amendments (including
post-effective amendments) to this Registration Statement, together with all
schedules and exhibits thereto, and any subsequent registration statement filed
pursuant to Rule 462(b) under the Securities Act of 1933, as amended, together
with all schedules and exhibits thereto, (ii) act on, sign and file such
certificates, instruments, agreements and other documents as may be necessary
or appropriate in connection therewith, (iii) act on, sign and file any
supplement to any prospectus filed pursuant to Rule 462(b) under the Securities
Act of 1933, as amended, and (iv) take any and all actions which may be
necessary or appropriate to be done, as fully to all intents and purposes as he
or she might or could do in person, hereby ratifying and confirming all that
said attorneys-in-fact and agents or any of them, or their or his or her
substitutes, may lawfully do or cause to be done by virtue hereof. </FONT></P>

<P><FONT SIZE=2>Pursuant to
the requirements of the Securities Act of 1933, as amended, this Registration
Statement has been signed by the following persons in the capacities and on the
dates indicated: </FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="7%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="8%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="7%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="4%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="15%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="15%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="9%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="4%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="9%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD COLSPAN="3" VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=1><B>Signature</B></FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="3" VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=1><B>Title</B></FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="3" VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=1><B>Date</B></FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=black ALIGN=CENTER>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=black ALIGN=CENTER>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=black ALIGN=CENTER>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD COLSPAN="3" VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=2>/s/ Edouard Cukierman</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="3" VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=2>Chairman of the Board of Directors</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="3" VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=2>June 30, 2008</FONT></P>
</TD>
</TR>
<TR>
<TD COLSPAN="3" VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=gray ALIGN=CENTER>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="3" VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="3" VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD COLSPAN="3" VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=2>Mr. Edouard Cukierman</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="3" VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="3" VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD COLSPAN="3" VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="3" VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="3" VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD COLSPAN="3" VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=2>/s/ Shmuel Koren</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="3" VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=2>President, Chief Executive Officer<BR>
  (Principal Executive Officer)</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="3" VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=2>June 30, 2008</FONT></P>
</TD>
</TR>
<TR>
<TD COLSPAN="3" VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=gray ALIGN=CENTER>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="3" VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="3" VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD COLSPAN="3" VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=2>Mr. Shmuel Koren</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="3" VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="3" VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD COLSPAN="3" VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="3" VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="3" VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD COLSPAN="3" VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=2>/s/ Eyal Cohen</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="3" VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=2>Chief Financial Officer<BR>
  (Principal Financial and Accounting Officer)</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="3" VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=2>June 30, 2008</FONT></P>
</TD>
</TR>
<TR>
<TD COLSPAN="3" VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=gray ALIGN=CENTER>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="3" VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="3" VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD COLSPAN="3" VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=2>Mr. Eyal Cohen</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="3" VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="3" VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD COLSPAN="3" VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="3" VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="3" VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD COLSPAN="3" VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=2>/s/ Yael Ilan</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="3" VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=2>Director</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="3" VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=2>June 30, 2008</FONT></P>
</TD>
</TR>
<TR>
<TD COLSPAN="3" VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=gray ALIGN=CENTER>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="3" VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="3" VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD COLSPAN="3" VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=2>Dr. Yael Ilan</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="3" VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="3" VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
</TABLE>
<BR>
<HR WIDTH="100%" size="1" noshade style="margin-top: -2px">
<HR WIDTH="100%" size="4" noshade style="margin-top: -10px">
<PAGE>
<BR>
<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="7%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="8%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="7%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="4%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="15%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="15%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="9%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="4%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="9%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>

<TR>
<TD COLSPAN="3" VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="3" VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="3" VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD COLSPAN="3" VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=2>/s/ Ronen Zavlik</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="3" VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=2>Director</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="3" VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=2>June 30, 2008</FONT></P>
</TD>
</TR>
<TR>
<TD COLSPAN="3" VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=gray ALIGN=CENTER>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="3" VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="3" VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD COLSPAN="3" VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=2>Mr. Ronen Zavlik</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="3" VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="3" VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD COLSPAN="3" VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="3" VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="3" VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD COLSPAN="3" VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=2>/s/ Dan Hoz</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="3" VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=2>Director</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="3" VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=2>June 30, 2008</FONT></P>
</TD>
</TR>
<TR>
<TD COLSPAN="3" VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=gray ALIGN=CENTER>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="3" VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="3" VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD COLSPAN="3" VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=2>Mr. Dan Hoz</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="3" VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="3" VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD COLSPAN="3" VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="3" VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="3" VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD COLSPAN="3" VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=2>/s/ Joshua Zoller</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="3" VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=2>Director</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="3" VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=2>June 30, 2008</FONT></P>
</TD>
</TR>
<TR>
<TD COLSPAN="3" VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=gray ALIGN=CENTER>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="3" VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="3" VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD COLSPAN="3" VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=2>Mr. Joshua Zoller</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="3" VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="3" VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD COLSPAN="3" VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="3" VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="3" VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD COLSPAN="3" VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=2>/s/ Amir Ohad</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="3" VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=2>Director</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="3" VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=2>June 30, 2008</FONT></P>
</TD>
</TR>
<TR>
<TD COLSPAN="3" VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=gray ALIGN=CENTER>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="3" VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="3" VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD COLSPAN="3" VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=2>Mr. Amir Ohad</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="3" VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="3" VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD COLSPAN="3" VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="3" VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="3" VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD COLSPAN="3" VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=2>/s/ Mr. G&#233;rard Limat</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="3" VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=2>Director</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="3" VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=2>June 30, 2008</FONT></P>
</TD>
</TR>
<TR>
<TD COLSPAN="3" VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=gray ALIGN=CENTER>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="3" VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="3" VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD COLSPAN="3" VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=2>Mr. G&#233;rard Limat</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="3" VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="3" VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD COLSPAN="3" VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="3" VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="3" VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD COLSPAN="3" VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=2>/s/ Joel Adler</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="3" VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=2>Director</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="3" VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=2>June 30, 2008</FONT></P>
</TD>
</TR>
<TR>
<TD COLSPAN="3" VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=gray ALIGN=CENTER>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="3" VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="3" VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD COLSPAN="3" VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=2>Mr. Joel Adler</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="3" VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="3" VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD COLSPAN="3" VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="3" VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="3" VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD COLSPAN="3" VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=2>/s/ Adi Raveh</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="3" VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=2>Director</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="3" VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=2>June 30, 2008</FONT></P>
</TD>
</TR>
<TR>
<TD COLSPAN="3" VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=gray ALIGN=CENTER>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="3" VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="3" VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD COLSPAN="3" VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=2>Prof. Adi Raveh</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="3" VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="3" VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
</TABLE>

<BR>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="6%" VALIGN=TOP>
<P ALIGN=RIGHT>&nbsp;</P>
</TD>
<TD WIDTH="2%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="48%" VALIGN=TOP>
<P ALIGN=CENTER>&nbsp;</P>
</TD>
<TD WIDTH="44%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=2><B>Authorized Representative in the U.S.:</B></FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=2>Summit Radio Corp.</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P ALIGN=RIGHT><FONT SIZE=2><B>By:</B></FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=2>/s/ Eyal Cohen</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=gray ALIGN=CENTER>

</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P ALIGN=RIGHT><FONT SIZE=2><B>Name:</B></FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=2>Eyal Cohen</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P ALIGN=RIGHT><FONT SIZE=2><B>Title:</B></FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=2>Director</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P ALIGN=RIGHT><FONT SIZE=2><B>Date:</B></FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=2>June 30, 2008</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
</TABLE>
<BR>
<HR WIDTH="100%" size="1" noshade style="margin-top: -2px">
<HR WIDTH="100%" size="4" noshade style="margin-top: -10px">

</BODY>

</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-4.1
<SEQUENCE>2
<FILENAME>exhibit_4-1.htm
<TEXT>
<!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 3.2 Final//EN">
<HTML>
<HEAD>
     <!-- Created by EDGAR Ease Plus (EDGAR Ease+) -->
     <!-- Project:        F:\EDGAR Filing\BOS better online solutions Ltd\85456\a85456.eep -->
     <!-- Control Number: 85456                                                            -->
     <!-- Rev Number:     1                                                                -->
     <!-- Client Name:    BOS better online solutions Ltd                                  -->
     <!-- Project Name:   F-3                                                              -->
     <!-- Firm Name:      Zadok-Keinan Ltd                                                 -->
     <TITLE>F-3</TITLE>
</HEAD>
<BODY>

<!-- MARKER FORMAT-SHEET="Scotch Rule Top-TNR" FSL="Workstation" -->
<HR ALIGN=LEFT WIDTH=100% SIZE=4 NOSHADE STYLE="margin-top: -5px">
<HR ALIGN=LEFT WIDTH=100% SIZE=1 NOSHADE STYLE="margin-top: -10px">


<P align=right><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><U><B>Exhibit 4.1</B></U> </FONT> </P>

<!-- MARKER FORMAT-SHEET="Head Major Center Bold-TNR" FSL="Workstation" -->
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>B.O.S. BETTER ONLINE
SOLUTIONS LTD. </FONT></H1>

<!-- MARKER FORMAT-SHEET="Head Major Center Bold-TNR" FSL="Workstation" -->
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>SHARE PURCHASE
AGREEMENT </FONT></H1>

<!-- MARKER FORMAT-SHEET="Head Major Center Bold 1-TNR" FSL="Workstation" -->
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Dated as of </FONT></H1>

<!-- MARKER FORMAT-SHEET="Head Major Center Bold 1-TNR" FSL="Workstation" -->
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>June 24, 2007 </FONT></H1>

<p align=center>
<font size=2></font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px"><HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<page>


<!-- MARKER FORMAT-SHEET="Head Major Center Bold-TNR" FSL="Workstation" -->
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>SHARE PURCHASE AGREEMENT </FONT></H1>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This
<B>SHARE PURCHASE AGREEMENT</B> (this &#147;Agreement&#148;) is made and entered into as
of June 24, 2007, by and among B.O.S Better Online Solutions Ltd., an Israeli company (the
&#147;Company&#148;), and the other parties listed on Schedule I hereto (each, an
&#147;Investor&#148; and collectively, the &#147;Investors&#148;). </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS,
subject to the terms and conditions herein, the Investors desire to acquire from the
Company, and the Company desires to issue to the Investors Ordinary Shares of the Company,
par value NIS 4.00 each (each, a &#147;Share&#148; and collectively, the
&#147;Shares&#148;, and when referred to the shares to be purchased by each Investor, such
number of shares as set forth opposite such Investor&#146;s name in the column labeled
&#147;No. of Shares&#148; on <U>Schedule 1</U> hereto) for the amounts set forth in
<U>Schedule 1</U> hereto. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;NOW,
THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, the Company and the Investors hereby agree as follows: </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE="2">1. &nbsp;&nbsp;&nbsp;&nbsp;<B>PURCHASE
AND SALE OF SHARES.</B> </FONT> </P>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;1.1 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subject
to the satisfaction of the terms and conditions described in this Agreement, at the
Closing (as defined below), the Company agrees to sell to each Investor, and each
Investor, severally and not jointly, agrees to purchase from the Company, such number of
Shares, against such amount, as is set forth opposite such Investor&#146;s name in the
columns labeled &#147;No. of Shares&#148;and &#147;Purchase Amount&#148;, respectively,
on <U>Schedule 1</U> hereto, and reflecting a price of $2.65 per Ordinary Share (the
&#147;PPS&#148;).  </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Workstation" -->
     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>2.&nbsp;&nbsp;&nbsp;&nbsp;
          <B>CLOSING. </B>The execution and delivery of this Agreement shall occur upon
          delivery by facsimile of executed signature pages of this Agreement and all
          other documents, instruments and writings required to be delivered pursuant to
          this Agreement to Amit, Pollak, Matalon &amp; Co., NYP Tower, 17 Yitzhak Sadeh
          St., Tel-Aviv 67775 Israel attn: Shlomo Landress, Adv., Fax: (972) 3 568-9001.
          The closing of the purchase and sale of the Shares will take place seven (7)
          days after the date hereof (or, if such date is not a business day, on the next
          business day thereafter), on which date the conditions for Closing set forth in
          Sections 5 and 6 herein shall be satisfied in full or waived by the appropriate
          party thereunder, or at such different date as may be mutually acceptable to the
          Investors and the Company (the &#147;Closing&#148;). At the Closing, each
          Investor shall deliver to the Company payment in full (without deduction of any
          fees or taxes) for the Shares to be purchased by such Investor in the amount set
          forth opposite such Investor&#146;s name in the column labeled &#147;Purchase
          Amount&#148; on <U>Schedule 1</U>, via wire transfer of immediately available
          funds or bank or cashier&#146;s check. At the Closing, the Company will deliver
          to each Investor a duly executed share certificate reflecting such number of
          shares set forth opposite such Investor&#146;s name in the column labeled
          &#147;No. of Shares&#148;. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Workstation" -->
     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>3.&nbsp;&nbsp;&nbsp;&nbsp;
          <B>REPRESENTATIONS AND WARRANTIES BY THE COMPANY. </B>The Company hereby
          represents and warrants to each Investor that: </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;3.1 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Corporate
Organization</U>. The Company is a corporation duly incorporated and validly existing
under the laws of Israel, and has the corporate power to own its property and to carry on
its business as now being conducted. The Company&#146;s shares are traded on the Nasdaq
Global Market and on the Tel-Aviv Stock Exchange and as such it is subject to both US and
Israeli Securities Laws.  </FONT></P>

<p align=center>
<font size=2></font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px"><HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<page>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;3.2 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Due
Authorization and Valid Issuance</U>. The Company has the corporate power to enter into
this Agreement and the Registration Rights Agreement (the &#147;Transaction Documents&#148;).
The Transaction Documents have been, or will have been, at the time of their respective
execution and delivery, duly executed and delivered by the Company. Prior to the Closing
of this Agreement, the Company shall have acted to complete all corporate action
necessary on its part for the issuance, sale and delivery of the Shares. The Shares being
purchased by the Investors hereunder will, upon issuance and payment therefore pursuant
to the terms hereof, be duly authorized, validly issued, fully-paid and nonassessable.  </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;3.3 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Binding
Agreement</U>. The Transaction Documents constitute valid and legally binding obligations
of the Company enforceable against the Company in accordance with their respective terms,
except as (i) such enforceability may be limited by bankruptcy, insolvency,
reorganization, arrangement, moratorium or similar laws relating to or affecting the
rights of creditors and contracting parties generally, (ii) the remedy of specific
performance and injunctive and other forms of equitable relief may be subject to
equitable defenses and to the discretion of the court before which any proceeding
therefore may be brought, and (iii) rights to indemnity and contribution may be limited
by Israeli or U.S. state or federal securities laws applicable to the Company or by the
public policy underlying such laws.  </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;3.4 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Non-Contravention</U>.
Neither the execution and delivery of the Transaction Documents, nor the consummation of
the transactions or the performance of the obligations contemplated hereby and thereby
will result in any violation or breach of Company&#146;s articles of association,
by-laws, board resolutions or shareholders resolutions.  </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;3.5 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>No
Consent</U>. To the Company&#146;s best knowledge, and in reliance on the representations
of the Investors given in Section 4 hereof, except for reporting obligations and
approvals required under applicable security laws and market regulations in Israel and
the United States and for notices to or approvals by the Office of the Chief Scientist
and the Investment Center of the Ministry of Industry, Trade and Labor (if required), no
consent of any governmental body or third party is required to be made or obtained by the
Company in connection with the execution and delivery of the Transaction Documents by the
Company or the consummation by the Company of the transactions or the performance of the
obligations contemplated hereby and thereby by the Company.  </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;3.6 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Capitalization</U>.
The authorized share capital of the Company consists as of the date hereof: 35,000,000
Ordinary Shares, par value NIS 4.00 per share, of which, as of April 30, 2007, 8,492,213
Ordinary Shares are issued and outstanding, and 3,081,974 Ordinary Shares are reserved
for issuance upon the exercise of warrants and of employee, director and consultant
options already granted by the Company.  </FONT></P>

<p align=center>
<font size=2>- 2 -</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px"><HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<page>


<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;3.7 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Financial
Statements</U>. </FONT> </P>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Workstation" -->
     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          The audited consolidated financial statements of the Company as of December 31,
          2006 and the related notes thereto, as filed by the Company with the Securities
          and Exchange Commission (&#147;SEC&#148;) under Form 6-K on March 27, 2007
          fairly present the financial position of the Company as of their respective
          dates, and have been prepared in accordance with the books and records of the
          Company as at the applicable dates and for the applicable periods. Such
          financial statements have been prepared in accordance with generally accepted
          accounting principles applied on a consistent basis throughout the periods
          therein specified, except as may be disclosed<B> </B>in the notes to such
          financial statements, or as may be permitted by the Securities and Exchange
          Commission and except as disclosed in the filings the Company made in connection
          with such statements, if any. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Workstation" -->
     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          Other than as reported in the Company&#146;s current reports, since December 31,
          2007, there has not been any event or material adverse change in the financial
          conditions of the Company as reflected in the financial statements which,
          individually or collectively with other events or changes, could have a material
          adverse effect on the Company. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;3.8 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Legal
Proceedings</U>. Except as disclosed in the Company&#146;s public filings, there is no
material legal or governmental proceeding pending or, to the knowledge of the Company,
threatened to which the Company is or may be a party.  </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;3.9 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Intellectual
Property</U>. (i) The Company, either directly or through its subsidiaries, owns or
possesses sufficient rights to use all material patents, patent rights, trademarks,
copyrights, licenses, inventions, trade secrets, trade names and know-how (collectively,
&#147;Intellectual Property&#148;) described or referred to in the Company&#146;s public
filings as owned or possessed by it,<B></B>except where the failure to currently own or
possess would not have a material adverse effect on the Company, (ii) to the knowledge of
the Company, the Company is not infringing, nor has it received any notice of, any
asserted infringement of, any rights of a third party with respect to any Intellectual
Property that, individually or in the aggregate, would have a material adverse effect on
the Company.  </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;3.10 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Compliance
with Law</U>. To the knowledge of the Company, the business of the Company is conducted
in accordance with applicable laws, except to extent that, individually or in the
aggregate, would not cause a material adverse effect on the Company.  </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;3.11 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Disclosure</U>.
The representations and warranties of the Company contained in this Section&nbsp;3 as of
the date hereof and as of the Closing, and in the Company&#146;s public filings with the
SEC, do not contain any untrue statement of a material fact or omit to state a material
fact necessary to make the statements herein, in light of the circumstances under which
they are made, not misleading. Investors are referred to the Company&#146;s Annual Report
on Form 20-F filed with the SEC on June 5, 2007.  </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Workstation" -->
     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>4.&nbsp;&nbsp;&nbsp;&nbsp;
          <B>REPRESENTATIONS OF THE INVESTORS.</B> Each of the Investors severally
          represents to the Company that: </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;4.1 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Enforceability</U>.
If such Investor is a corporation, partnership, limited liability company, trust or other
entity, (i) it is authorized and qualified and has full right and power to become an
investor in the Company, is authorized to purchase the Shares and to perform its
obligations pursuant to the provisions hereof, (ii) the person signing the Transaction
Documents and any other instrument executed and delivered therewith on behalf of such
Investor has been duly authorized by such entity and has full power and authority to do
so, and (iii) such Investor has not been formed for the specific purpose of acquiring an
interest in the Company.  </FONT></P>

<p align=center>
<font size=2>- 3 -</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px"><HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<page>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;4.2 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Restrictions
on Transferability and Hedging.</U> </FONT> </P>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 1- TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD ALIGN=RIGHT WIDTH=5%></TD>
<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;4.2.1 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Such
Investor understands that (i) the Shares have not yet been registered under the
Securities Act of 1933, or under the laws of any other jurisdiction; (ii) such Shares
cannot be sold, transferred or otherwise disposed of unless they are subsequently
registered under the Securities Act and, where required, under the laws of other
jurisdictions or unless an exemption from registration is then available; (iii) there is
now no registration statement on file with the Securities and Exchange Commission with
respect to the Shares to be purchased by the Investor.  </FONT></P></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 1- TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD ALIGN=RIGHT WIDTH=5%></TD>
<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;4.2.2 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Such
Investor acknowledges and agrees that the certificates representing the Shares shall bear
restrictive legends as counsel to the Company may determine are necessary or appropriate,
including without limitation, legends under applicable securities laws similar to the
following:  </FONT></P></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 1-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%>&nbsp;</TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&#147;The
shares represented by this certificate have not been registered under the Securities Act
of 1933. The shares have been acquired for investment and may not be sold, transferred,
assigned or otherwise disposed of in the absence of an effective registration statement
with respect to the shares evidenced by this certificate, filed and made effective under
the Securities Act of 1933, or an opinion of the Company&#146;s counsel that registration
under such Act is not required.&#148; </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 1- TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD ALIGN=RIGHT WIDTH=5%></TD>
<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;4.2.3&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Company will not register any transfer of Shares not made pursuant to registration under
the Securities Act, or pursuant to an available exemption from registration.  </FONT></P></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 1- TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD ALIGN=RIGHT WIDTH=5%></TD>
<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;4.2.4&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Such
Investor agrees not to engage in hedging transactions with regard to the Shares sold
pursuant to this Agreement.  </FONT></P></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;4.3 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Offshore
Transaction</U>. Such Investor is not a &#147;U.S. Person&#148;, as such term is defined
in Regulation S under the Securities Act of 1933 (&#147;Reg. S&#148;), its principal
address is outside the United States and it has no present intention of becoming a
resident of (or moving its principal place of business to) the United States. Such
Investor was located outside the United States at the time any offer to sell and any
other action in connection with such offer and sale was made to such Investor and at the
time that the buy order was originated by the Investor. The Shares are being acquired
solely for such Investor&#146;s own account, and in no event and without derogating from
the foregoing, for the account or the benefit of a U.S. person. The Investor shall comply
with the applicable distribution compliance periods pursuant to Reg. S.  </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;4.4 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Investment
Purposes</U>. The Shares are being acquired for investment purposes. The Shares are not
being purchased with a view to, or for sale in connection with, any distribution or other
disposition thereof. The Investor has no present plans to enter into any contract,
undertaking, agreement or arrangement for any such resale, distribution or other
disposition and it will not divide its interest in the Company&#146;s Shares with others,
resell or otherwise distribute the Shares in violation of federal or state US Securities
laws or the Israeli Securities Law.  </FONT></P>

<p align=center>
<font size=2>- 4 -</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px"><HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<page>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;4.5 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Information
and Advice.</U> </FONT> </P>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 1- TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD ALIGN=RIGHT WIDTH=5%></TD>
<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;4.5.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Such
Investor has carefully reviewed and understands the risks of a purchase of the Shares. In
connection with such Investor&#146;s investment in the Company, it has obtained the
advice of its own investment advisors, counsel and accountants (the &#147;Advisors&#148;).
Such Investor and its Advisors have reviewed the Company&#146;s public filings and have
been furnished with all materials relating to the Company or the offering of the Shares
(the &#147;Offering&#148;) that they have requested. Such Investor and its Advisors have
been afforded the opportunity to ask questions of the Company concerning the financial
and other affairs of the Company and the conditions of the Offering and to obtain any
additional information necessary to verify the accuracy of any representations or
information set forth with respect to the Shares.  </FONT></P></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 1- TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD ALIGN=RIGHT WIDTH=5%></TD>
<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;4.5.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Company has answered all reasonable inquiries that such Investor and its Advisors have
made concerning the Company or any other matters relating to the creation and operations
of the Company and the terms and conditions of the Offering.  </FONT></P></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;4.6 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Sophistication
and Risk.</U> </FONT> </P>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 1- TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD ALIGN=RIGHT WIDTH=5%></TD>
<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;4.6.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;It
has such knowledge and experience in financial and business matters, that it is capable
of evaluating, and has evaluated, the merits and risks of the Offering. By reason of its
business or financial experience, it has the capacity to protect its interests in
connection with an investment in the Company.  </FONT></P></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 1- TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD ALIGN=RIGHT WIDTH=5%></TD>
<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;4.6.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;It
understands that no Israeli or U.S. federal or state agency has passed upon the Shares or
made any finding or determination as to the fairness of the transactions contemplated in
the Transaction Documents.  </FONT></P></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 1- TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD ALIGN=RIGHT WIDTH=5%></TD>
<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;4.6.3&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;It
understands that the Shares are speculative investments, which involve a high degree of
risk, including the risk that such Investor might lose its entire amount invested in the
Company.  </FONT></P></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 1- TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD ALIGN=RIGHT WIDTH=5%></TD>
<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;4.6.4&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;It
understands that any tax benefits that may be available to such Investor may be lost
through adoption of new laws, amendments to existing laws or regulations, or changes in
the interpretation of existing laws and regulations.  </FONT></P></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 1- TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD ALIGN=RIGHT WIDTH=5%></TD>
<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;4.6.5&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;It
has the financial ability to bear the economic risk of its investment in the Company and
has adequate net worth and means of providing for the Investor&#146;s current needs and
contingencies to sustain a complete loss of the Investor&#146;s investment and has no
need for liquidity in the Investor&#146;s investment in the Company.  </FONT></P></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 1- TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD ALIGN=RIGHT WIDTH=5%></TD>
<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;4.6.6&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;It
is an &#147;Accredited Investor,&#148; as such term is defined in Rule 501 of Regulation
D under the Securities Act of 1933.  </FONT></P></TD>
</TR>
</TABLE>
<BR>

<p align=center>
<font size=2>- 5 -</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px"><HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<page>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;4.7 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>No
solicitation</U>. At no time was such Investor presented with or solicited by any
leaflet, public promotional meeting, newspaper or magazine article, radio or television
advertisement or any other form of general advertising or general solicitation concerning
the Offering.  </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;4.8 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Broker-Dealer</U>.
The Investor is not a broker-dealer, nor is it an affiliate of any broker-dealer. </FONT> </P>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;4.9 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Further
Indebtedness</U>. Such Investor acknowledges that no provision of the Transaction
Documents executed and delivered by the Company restricts, or shall be construed to
restrict, in any way the ability of the Company to incur indebtedness or to issue share
capital or other equity securities (or securities convertible into equity securities) of
the Company or to grant liens on its property and assets.  </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;4.10 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Voting
and/or Investment Control over the Investor</U>. Each Investor has made available to the
Company a list of individuals who have or share voting and/or investment control over
such Investor. The Investor shall update such list as reasonably requested by the Company
to comply with request for such information from any regulatory body.  </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;4.11 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Independent
Investment</U>. No Investor has agreed to act with any other Investor for the purpose of
acquiring, holding, voting or disposing of the Shares purchased hereunder, and each
Investor is acting independently with respect to its investment in the Shares. Nothing
contained herein or in any Transaction Document, and no action taken by any Investor
pursuant thereto, shall be deemed to constitute the Investors, or any of them, as a
partnership, an association, a joint venture or any other kind of entity, or create a
presumption that the Investors, or any of them, are in any way acting in concert or as a
group with respect to such obligations or the transactions contemplated by the
Transaction Documents.  </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;4.12 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Holdings</U>.
<U>Schedule 1</U> attached hereto reflects the holdings of the Company&#146;s shares by
each Investor and its affiliates as of the date hereof, and as of the Closing.  </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;4.13 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Availability
of Exemptions</U>. The Investor understands that the Shares are being offered and sold in
reliance on a transactional exemption or exemptions from the registration requirements of
Israeli and U.S. Federal and state securities laws and the Company is relying upon the
truth and accuracy of the representations, warranties, agreements, acknowledgments and
understandings of such Investor set forth herein in order to determine the applicability
of such exemptions and the suitability of such Investor to acquire the Shares.  </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;4.14 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Indemnification.</U> The
Investor agrees to indemnify, defend and hold harmless the Company and its shareholders,
directors, executive officers and affiliates from and against all liability, damage,
losses, costs and expenses (including reasonable attorneys&#146; fees) which they may
incur by reason of the failure of the Investor to fulfill any of the terms and conditions
of this Agreement, or by reason of any breach of the representations and warranties made
by the Investor herein or in any document provided by the Investor to any executive
officers, directors, the Company or any of their affiliates.  </FONT></P>

<p align=center>
<font size=2>- 6 -</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px"><HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<page>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;4.15 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<U>Disclosure</U>. The representations and warranties of the Investor contained in this
Section&nbsp;4 as of the date hereof and as of the Closing, do not contain any untrue
statement of a material fact or omit to state a material fact required to be stated
herein or necessary to make the statements herein, in light of the circumstances under
which they are made, not misleading. Each Investor understands and confirms that the
Company will rely on the foregoing representations in effecting the transaction
contemplated in the Transaction Documents and other transactions in securities of the
Company.  </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Workstation" -->
     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>5.&nbsp;&nbsp;&nbsp;&nbsp;
          <B>CONDITIONS OF EACH INVESTOR&#146;S OBLIGATION AT THE CLOSING. </B>The
          obligation of each Investor to purchase its respective Shares is subject to the
          fulfillment or waiver by such Investor prior to or on the date of the Closing of
          the conditions set forth in this Section 5. In the event that any such condition
          is not satisfied to the satisfaction of an Investor, then such non-satisfied
          Investor shall not be obligated to proceed with the purchase of such securities. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;5.1 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Representations
and Warranties</U>. The representations and warranties of the Company under this
Agreement shall be true in all material respects as of the Closing, with the same effect
as though made on and as of such date.  </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;5.2 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Compliance
with Agreements</U>. The Company shall have performed and complied in all material
respects with all agreements or conditions required by this Agreement to be performed and
complied with by it prior to or as of the Closing.  </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;5.3 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Registration
Rights Agreement</U>. As of the Closing, the Registration Rights Agreement in the form
attached hereto as <U>Exhibit A</U> (the &#147;Registration Rights Agreement&#148;) shall
have been executed and delivered by the Company and each Investor.  </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;5.4 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>No
Injunction</U>. No statute, rule, regulation, executive order, decree, ruling or
injunction shall have been enacted, entered, promulgated or endorsed by any court or
governmental authority of competent jurisdiction which prohibits the consummation of any
of the transactions contemplated by this Agreement.  </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Workstation" -->
     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>6.&nbsp;&nbsp;&nbsp;&nbsp;
          <B>CONDITIONS OF THE COMPANY&#146;S OBLIGATION AT THE CLOSING. </B>The
          obligation of the Company to issue the Shares to the Investors at the Closing is
          subject to the fulfillment or waiver by the Company prior to or on the Closing
          of the conditions set forth in this Section 6. In the event that any such
          condition is not satisfied to the satisfaction of the Company, then the Company
          shall not be obligated to proceed with the sale of the securities under this
          Agreement. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;6.1 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Representations
and Warranties</U>. The representations and warranties of all Investors under this
Agreement shall be true in all material respects as of the Closing, with the same effect
as though made on and as of such date.  </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;6.2 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Compliance
with Agreements</U>. All Investors shall have performed and complied in all respects with
all agreements or conditions required by this Agreement to be performed and complied with
by it prior to or as of the Closing.  </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;6.3 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Registration
Rights Agreement</U>. As of the Closing, the Registration Rights Agreement shall have
been executed and delivered by all of the Investors. </FONT> </P>

<p align=center>
<font size=2>- 7 -</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px"><HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<page>


<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;6.4 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>No
Injunction</U>. No statute, rule, regulation, executive order, decree, ruling or
injunction shall have been enacted, entered, promulgated or endorsed by any court or
governmental authority of competent jurisdiction which prohibits the consummation of any
of the transactions contemplated by this Agreement.  </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;6.5 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Delivery
of Purchase Amount</U>. Each of the Investors shall have delivered to the Company its
respective Purchase Amount for the Shares at the Closing Date.  </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;6.6 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Government
Approvals</U>. The Company shall have received all necessary governmental approvals with
respect to the transactions contemplated hereby. The Investors shall have executed any
confirmations required by the Office of Chief Scientist.  </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;6.7 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Notices
to Nasdaq and the TASE</U>. The Company shall have made all required filings of notices
with Nasdaq and the Tel Aviv Stock Exchange. The Company shall use its best efforts to
complete such filings.  </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Workstation" -->
     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>7.&nbsp;&nbsp;&nbsp;&nbsp;
          <B>CONFIDENTIALITY. </B>Any information disclosed to each of the Investors or
          their respective Advisors, which has not previously been made available to the
          general public by the Company, if any, shall be considered Confidential
          Information. Each Investor acknowledges the confidential nature of the
          Confidential Information it may have received, and agrees that the Confidential
          Information is the valuable property of the Company. Each Investor agrees that
          it and its Advisors shall not reproduce any of the Confidential Information
          without the prior written consent of the Company, nor shall they use any
          Confidential Information for any purpose except as permitted by and in the
          performance of this Agreement, or divulge all or any part of the Confidential
          Information to any third party. The confidentiality obligations undertaken by
          the Investors hereunder will remain in full force and effect regardless of the
          execution and consummation or termination of this Agreement. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE="2">8. &nbsp;&nbsp;&nbsp;&nbsp;<B>MISCELLANEOUS.</B> </FONT> </P>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;8.1 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Amendments.</U> This
Agreement may be modified, supplemented or amended only by a written instrument executed
by all of the parties.  </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;8.2 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Notices</U>.
Any notice that is required or provided to be given under this Agreement shall be deemed
to have been sufficiently given and received for all purposes, (i) when delivered in
writing by hand, upon delivery; (ii) if sent via facsimile, upon transmission and
electronic confirmation of receipt (and if transmitted and received on a non-business
day, on the first business day following transmission and electronic confirmation of
receipt), (iii) seven (7) business days (and fourteen (14) business days for
international mail) after being sent by certified or registered mail, postage and charges
prepaid, return receipt requested, or (iv) three (3) business days after being sent by
internationally overnight delivery providing receipt of delivery, to the following
addresses:  </FONT></P>

<p align=center>
<font size=2>- 8 -</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px"><HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<page>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 1-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%>&nbsp;</TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
if
to the Company, B.O.S Better Online Solutions Ltd., 20 Freiman Street, Rishon Lezion,
75101 Israel Attn: Mr. Eyal Cohen, CFO, facsimile: (972) 3 954-1003, with a copy to Amit,
Pollak Matalon &amp; Co., NYP Tower, 17 Yitzhak Sadeh St., Tel-Aviv 67775 Israel attn:
Shlomo Landress, Adv. Fax: (972) 3 568-9000; or at any other address designated by the
Company to the Investors in writing; </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 1-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%>&nbsp;</TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
if
to an Investor, to its address listed on <U>Schedule 1</U> hereto or at any other address
designated by the Investor to the Company in writing. </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;8.3 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Survival
of Representations and Warranties</U>. All representations and warranties contained
herein or in any Transaction Document or in any other certificate delivered hereunder or
thereunder shall survive after the execution and delivery of this Agreement or such
certificate or document, as the case may be, for a period of 24 months from the date
hereof. All covenants and agreements in any Transaction Documents shall survive in
accordance with their terms. This Section shall survive the termination of this Agreement
for any reason.  </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;8.4 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Delays
or Omissions; Waiver</U>. Except as expressly provided herein, no delay or omission to
exercise any right, power or remedy accruing to any party under this Agreement shall
impair any such right, power or remedy of such party nor shall it be construed to be a
waiver of any breach or default, or an acquiescence thereto, or of a similar breach or
default thereafter occurring; nor shall any waiver of any single breach or default be
deemed a waiver of any other breach or default theretofore or thereafter occurring. Any
waiver, permit, consent or approval of any kind or character on the part of any party
hereto of any breach or default under this Agreement, or any waiver on the part of any
party of any provisions or conditions of this Agreement, must be in writing and shall be
effective only to the extent specifically set forth in such writing.  </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;8.5 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Other
Remedies</U>. Any and all remedies herein expressly conferred upon a party shall be
deemed cumulative with, and not exclusive of, any other remedy conferred hereby or by law
on such party, and the exercise of any one remedy shall not preclude the exercise of any
other.  </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;8.6 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Entire
Agreement</U>. This Agreement and the exhibits and schedules hereto, constitute the
entire understanding and agreement of the parties hereto with respect to the subject
matter hereof and thereof and supersede all prior and contemporaneous agreements or
understandings, inducements or conditions, express or implied, written or oral, between
the parties with respect hereto and thereto.  </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;8.7 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Headings.</U> All
section headings herein are inserted for convenience only and shall not modify or affect
the construction or interpretation of any provision of this Agreement.  </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;8.8 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Severability</U>.
Should any one or more of the provisions of this Agreement (including its exhibits and
schedules) or of any agreement entered into pursuant to this Agreement be determined to
be illegal or unenforceable, all other provisions of this Agreement and of each other
agreement entered into pursuant to this Agreement, shall be given effect separately from
the provision or provisions determined to be illegal or unenforceable and shall not be
affected thereby. The parties further agree to replace such void or unenforceable
provision of this Agreement with a valid and enforceable provision, which will achieve,
to the extent possible, the economic, business and other purposes of the void or
unenforceable provision.  </FONT></P>

<p align=center>
<font size=2>- 9 -</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px"><HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<page>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;8.9 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Assignment</U>.
This Agreement may not be assigned in whole or in part by any Investor without the prior
written consent of the Company.  </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;8.10 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Governing
Law and Venue</U>. This Agreement shall be construed in accordance with and governed by
the internal laws of the State of Israel, without regard to conflict of laws provisions.
Any dispute arising under or in relation to this Agreement shall be adjudicated in the
competent court of Tel Aviv-Jaffa district only, and each of the parties hereby submits
irrevocably to the exclusive jurisdiction of such court.  </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;8.11 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Counterparts</U>.
This Agreement may be executed concurrently in any number of counterparts, each of which
shall be deemed an original, but all of which together shall constitute one and the same
instrument.  </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;8.12 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Further
Actions.</U> At any time and from time to time, each party agrees, without further
consideration, to take such actions and to execute and deliver such documents as may be
reasonably necessary to effectuate the purposes of this Agreement.  </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;8.13 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Independent
Nature of Investors&#146; Obligations and Rights</U>. The obligations of each Investor
under any Transaction Document are several and not joint with the obligations of any
other Investor, and no Investor shall be responsible in any way for the performance of
the obligations of any other Investor under any Transaction Document.  </FONT></P>

<P align=center><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B><I>(Remainder of page intentionally left blank.)</I></B> </FONT> </P>

<p align=center>
<font size=2>- 10 -</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px"><HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<page>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Default" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>IN WITNESS WHEREOF</B>, the
undersigned have executed and delivered this Agreement as of the date first set forth
above. </FONT></P>




<!-- MARKER FORMAT-SHEET="Signature (Single)" FSL="Workstation" -->
<TABLE WIDTH=100% CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=50%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>B.O.S BETTER ON LINE SOLUTIONS LTD.<BR><BR>
<BR>By: _______________________________<BR>
<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Name: __________________________
<BR><BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Title: ___________________________</FONT></TD>
<TD WIDTH=40%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
</TR>
</TABLE>
<BR>
<BR>



<!-- MARKER FORMAT-SHEET="Signature (Single)" FSL="Workstation" -->
<TABLE WIDTH=100% CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=50%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>SG PRIVATE BANKING (SUISSE) S.A.<BR><BR>
<BR>By: _______________________________<BR>
<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Name: __________________________
<BR><BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Title: ___________________________</FONT></TD>
<TD WIDTH=40%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
</TR>
</TABLE>
<BR>



<p align=center>
<font size=2>- 11 -</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px"><HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<page>

<!-- MARKER FORMAT-SHEET="Head Major Center Bold 1-TNR" FSL="Default" -->
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><U>Schedule 1</U> </FONT> </H1>



<TABLE WIDTH="100%" BORDER="1" CELLPADDING="3" CELLSPACING="0">
<TR VALIGN="TOP">
     <TD rowspan=2 align=center><FONT FACE="Times New Roman, Times, Serif" SIZE="2">INVESTOR'S NAME AND ADDRESS
</FONT></TD>
     <TD  rowspan=2 align=center><FONT FACE="Times New Roman, Times, Serif" SIZE="2">PURCHASE
  AMOUNT
</FONT></TD>
     <TD  rowspan=2 align=center><FONT FACE="Times New Roman, Times, Serif" SIZE="2"> NO. OF SHARES
    PURCHASED
</FONT></TD>
     <TD colspan=2 align=center><FONT FACE="Times New Roman, Times, Serif" SIZE="2">PRE-CLOSING HOLDINGS
</FONT></TD>
     <TD  colspan=2 align=center><FONT FACE="Times New Roman, Times, Serif" SIZE="2">POST-CLOSING HOLDINGS
</FONT></TD>
</TR>
<TR VALIGN="TOP">
     <TD ALIGN="center" ><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Amount</FONT></TD>
     <TD ALIGN="center" ><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Percent </FONT></TD>
     <TD ALIGN="center" ><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Amount  </FONT></TD>
     <TD ALIGN="center" ><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Percent</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD WIDTH="22%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>Name: <BR>
<BR>
SG PRIVATE<BR> BANKING (Suisse) S.A.</B><BR>
<BR>
Address:<BR>
<BR>
Avenue de Rumine 20<BR>
Case Postale 220<BR>
1001 Switzerland<BR><BR> </FONT>
</TD>
     <TD WIDTH="15%" align=center><FONT FACE="Times New Roman, Times, Serif" SIZE="2">600,000</FONT></TD>
     <TD WIDTH="15%" align=center><FONT FACE="Times New Roman, Times, Serif" SIZE="2">226,415</FONT></TD>
     <TD WIDTH="12%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD WIDTH="12%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD WIDTH="12%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD WIDTH="12%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">[Additional Investors]<BR><BR></FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Total</FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
</TABLE>
<BR>

<p align=center>
<font size=2>- 12 -</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px"><HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<page>

<!-- MARKER FORMAT-SHEET="Head Major Center Bold-TNR" FSL="Workstation" -->
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>REGISTRATION RIGHTS
AGREEMENT </FONT></H1>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This
Registration Rights Agreement (this <B>&#147;Agreement&#148;</B>) is made and entered into
as of June 24, 2007, by and between B.O.S. Better Online Solutions Ltd., an Israeli
corporation (the &#147;<B>Company</B>&#148;), and the other parties listed on Schedule 1
hereto (each an &#147;<B>Investor</B>&#148; and collectively, the
&#147;<B>Investors</B>&#148;). The Company and the Investors shall be referred to herein
collectively as the &#147;<B>Parties</B>&#148;. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Large Indent Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This
Agreement is made pursuant to the Share Purchase Agreement of even date hereof, by and
between the Investors and the Company (the <B>&#147;Share Purchase Agreement&#148;</B>). </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Company and each of the Investors hereby agree as follows: </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Workstation" -->
     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>9.&nbsp;&nbsp;&nbsp;&nbsp;
          <U>Definitions</U>. Capitalized terms used and not otherwise defined herein that
          are defined in the Share Purchase Agreement shall have the meanings given to
          such terms in the Share Purchase Agreement. As used in this Agreement, the
          following terms shall have the following meanings: </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Large Indent Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<I>Affiliate</I>&#148;
of any specified person means any other person, directly or indirectly, controlling or
controlled by or under common control with such specified person. For the purpose of this
definition &#147;control&#148; as used with respect to any person, shall mean the
possession, directly or indirectly, of the power to direct or cause the direction of the
management or policies of such person, whether through the ownership of voting securities
or by agreement or otherwise. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Large Indent Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<I>Commission</I>&#148;
means the Securities and Exchange Commission. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Large Indent Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<I>Ordinary
S</I>hares&#148; means the Company&#146;s Ordinary Shares, NIS 4.00 nominal value per
share. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Large Indent Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<I>Exchange
Act</I>&#148; means the Securities Exchange Act of 1934, as amended, and any successor
statute. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Large Indent Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<I>Holder</I>&#148;
or &#147;<I>Holders</I>&#148; means the Investor or any of its successors to the extent
any of them hold Registrable Securities, provided that only registered holders of
Registrable Securities shall be counted for purposes of calculating any proportion of
holders entitled to take any action, receive any damages or give any notice pursuant to
this Agreement. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Large Indent Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<I>Indemnified
Party</I>&#148; shall have the meaning set forth in Section 6(c). </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Large Indent Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<I>Indemnifying
Party</I>&#148; shall have the meaning set forth in Section 6(c). </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Large Indent Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<I>Majority
Holders</I>&#148; shall means the Holders of a majority of the then outstanding aggregate
amount of Registrable Securities registered under an applicable Registration Statement,
provided that Registrable Securities which have been sold or otherwise transferred
pursuant to the Registration Statement or Rule 144 or are transferable without restriction
under Rule 144 shall not be included in the calculation of Majority Holders. </FONT></P>

<p align=center>
<font size=2>- 13 -</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px"><HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<page>

<!-- MARKER FORMAT-SHEET="Para Large Indent Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<I>Proceeding</I>&#148;
means an action, claim, suit, investigation or proceeding (including, without limitation,
an investigation or partial Proceeding, such as a deposition), whether commenced or
threatened. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Large Indent Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<I>Prospectus</I>&#148;
means the prospectus included in the Registration Statement (including, without
limitation, a prospectus that includes any information previously omitted from a
prospectus filed as part of an effective registration statement in reliance upon Rule 430A
promulgated under the Securities Act), as amended or supplemented by any prospectus
supplement, with respect to the terms of the offering of any portion of the Registrable
Securities covered by the Registration Statement, and all other amendments and supplements
to the Prospectus, including post-effective amendments, and all material incorporated by
reference or deemed to be incorporated by reference in such Prospectus. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Large Indent Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<I>Registrable
Securities</I>&#148; means the Ordinary Shares purchased pursuant to the Share Purchase
Agreement and any shares issued to the Investors in connection therewith prior to the date
the Registration Statement was declared effective by the Commission, including bonus
shares and shares granted pursuant to a share split. As to any particular Registrable
Securities, such Registrable Securities shall cease to be Registrable Securities when (i)
they have been registered under the Securities Act, the registration statement in
connection therewith has been declared effective and they have been disposed of pursuant
to such effective registration statement, (ii) they are eligible to be sold or distributed
without volume limitations pursuant to Rule 144, or (iii) they shall have ceased to be
outstanding. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Large Indent Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<I>Registration
Statement</I>&#148; means the registration statement, including the Prospectus, amendments
and supplements to such registration statement or Prospectus, including pre- and
post-effective amendments, all exhibits thereto, and all material incorporated by
reference or deemed to be incorporated by reference in such registration statement. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Large Indent Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<I>Rule
144</I>&#148; means Rule 144 promulgated by the Commission pursuant to the Securities Act,
as such Rule may be amended from time to time, or any similar rule or regulation hereafter
adopted by the Commission having substantially the same effect as such Rule. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Large Indent Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<I>Securities
Act</I>&#148; means the Securities Act of 1933, as amended, and any successor statute. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Workstation" -->
     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>10.&nbsp;&nbsp;&nbsp;&nbsp;
          Amendments or Supplements &#150; All references in this Agreement to amendments
          or supplements to the Registration Statement, any preliminary Prospectus or
          Prospectus shall be deemed to mean and include the filing of any document under
          the Exchange Act, after the date of such Registration Statement, preliminary
          Prospectus or Prospectus, as the case may be, which is incorporated by reference
          therein. </FONT></P>

<p align=center>
<font size=2>- 14 -</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px"><HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<page>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE="2">11.&nbsp;&nbsp;&nbsp;&nbsp;<U>Incidental
Registration</U>. </FONT> </P>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;11.1 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If
the Company at any time shall determine to prepare and file with the Commission a
Registration Statement relating to an offering of its equity securities, for its own
account or the account of others (except with respect to registration statements on Form
F-4, Form S-8 or another form not available for registering the Registrable Securities
for sale to the public), each such time it will give written notice to all Holders of
Registrable Securities of its intention so to do. The Company shall, upon the written
request of any such Holder, received by the Company within 10 days after the giving of
any such notice by the Company, to register any of its Registrable Securities, use its
best efforts to cause the Registrable Securities as to which registration shall have been
so requested to be included in the securities to be covered by the Registration Statement
proposed to be filed by the Company, all to the extent requisite to permit the sale or
other disposition by the Holders of such Registrable Securities. Notwithstanding the
above, Registrable Securities shall be included in such Registration Statement only to
the extent that their inclusion will not: (i) limit the number of securities sought to be
included by the Company for its own account or pursuant to the Company&#146;s agreements
with other shareholders; (ii) in the opinion of the Company, reduce the offering price or
trading price of the Company&#146;s Ordinary Shares; or (iii) cause the Registration
Statement to exceed any limit as may be mandated by the Commission or by applicable
regulation.  </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;11.2 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
the event that any registration pursuant to this Section&nbsp;3, shall be, in whole or in
part, an underwritten public offering, and the managing underwriter advises the Company
that the inclusion of any or all of the Registrable Securities proposed to be included in
such registration would interfere with the successful marketing (including pricing) of
the offering, then the size of the offering shall be reduced accordingly with any
reduction applied first to the Registrable Securities proposed to be registered and
thereafter to securities of other shareholders proposed to be registered.  </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;11.3 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Notwithstanding
the foregoing provisions, the Company may withdraw any Registration Statement referred to
in this Section&nbsp;3 without thereby incurring any liability to the Holders of the
Registrable Securities.  </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Workstation" -->
     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>12.&nbsp;&nbsp;&nbsp;&nbsp;
          <U>Registration Procedures</U>. If and whenever the Company shall have filed a
          Registration Statement which includes Registrable Securities under the
          Securities Act, the Company shall: </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;12.1 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;prepare
and file with the Commission the Registration Statement with respect to such Registrable
Securities, respond as promptly as possible to any comments received from the Commission,
and use its reasonable commercial efforts to cause the Registration Statement to become
effective;  </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;12.2 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;prepare
and file with the Commission such amendments and supplements to the Registration
Statement and the Prospectus used in connection therewith as may be necessary to comply
with the provisions of the Securities Act with respect to the disposition of all
Registrable Securities covered by the Registration Statement and to keep such
Registration Statement effective;  </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;12.3 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;furnish
to the Holder such number of copies of the Registration Statement and the Prospectus
included therein (including each preliminary Prospectus) as the Holder reasonably may
request to facilitate the public sale or disposition of the Registrable Securities
covered by the Registration Statement;  </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;12.4 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;use
its best efforts to list the Registrable Securities covered by the Registration Statement
with any securities exchange on which the Ordinary Shares of the Company are then listed;  </FONT></P>

<p align=center>
<font size=2>- 15 -</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px"><HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<page>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;12.5 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;immediately
notify the Holder at any time when a Prospectus relating to the Registrable Securities is
required to be delivered under the Securities Act, of the happening of any event, of
which the Company has knowledge, as a result of which the Prospectus contained in such
Registration Statement, as then in effect, includes an untrue statement of a material
fact or omits to state a material fact required to be stated therein or necessary to make
the statements therein not misleading in light of the circumstances then existing.  </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Workstation" -->
     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>13.&nbsp;&nbsp;&nbsp;&nbsp;
          <U>Registration Expenses</U>. All expenses relating to the Company&#146;s
          compliance with Section 3 hereof, including, without limitation, all
          registration and filing fees, printing expenses, fees and disbursements of
          counsel and independent public accountants for the Company, fees of the NASD,
          fees of transfer agents and registrars are called &#147;Registration
          Expenses&#148;. All selling commissions and discounts applicable to the sale of
          Registrable Securities, are called &#147;Selling Expenses.&#148; The Company
          shall only be responsible for all Registration Expenses and not for any Selling
          Expenses, which shall be the sole responsibility of the Holders. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE="2">14. &nbsp;&nbsp;&nbsp;&nbsp;<U>Indemnification</U>. </FONT> </P>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;14.1 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
the event of a registration of any Registrable Securities under the Securities Act
pursuant to this Agreement, the Company will indemnify and hold harmless the Holder, and
its officers, directors and each other person, if any, who controls the Holder within the
meaning of the Securities Act, against any losses, claims, damages or liabilities, joint
or several, to which the Holder, or such persons may become subject under the Securities
Act or otherwise, insofar as such losses, claims, damages or liabilities (or actions in
respect thereof) arise out of or are based upon any untrue statement or alleged untrue
statement of any material fact contained in any Registration Statement under which such
Registrable Securities were registered under the Securities Act pursuant to this
Agreement, any preliminary Prospectus or final Prospectus contained therein, or any
amendment or supplement thereof, or arise out of or are based upon the omission or
alleged omission to state therein a material fact required to be stated therein or
necessary to make the statements therein not misleading, and will reimburse the Holder,
and each such person for any reasonable legal or other expenses incurred by them in
connection with investigating or defending any such loss, claim, damage, liability or
action; provided, however, that the Company will not be liable in any such case if and to
the extent that any such loss, claim, damage or liability arises out of or is based upon
(A) any untrue statement or alleged untrue statement or omission or alleged omission so
made in conformity with information furnished by or on behalf of the Holder or any such
person in writing specifically for use in any such document; (B) use of the Registration
Statement or the related Prospectus following a Discontinuation Event (as defined below),
provided Holder received prior notice of such Discontinuation Event; or (C) if the Holder
fails to deliver a Prospectus, as then amended or supplemented.  </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Notwithstanding
the foregoing, the Company shall not be liable for any losses, claims, damages or
liabilities by reason of any compromise, consent to entry of judgment, or settlement
effected without the Company&#146;s prior written consent, which consent shall not be
unreasonably withheld or conditioned. </FONT></P>

<p align=center>
<font size=2>- 16 -</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px"><HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<page>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;14.2 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
the event of a registration of the Registrable Securities under the Securities Act
pursuant to this Agreement, the Holder will indemnify and hold harmless the Company, and
its officers, directors and each other person, if any, who controls the Company within
the meaning of the Securities Act, against all losses, claims, damages or liabilities,
joint or several, to which the Company or such persons may become subject under the
Securities Act or otherwise, insofar as such losses, claims, damages or liabilities (or
actions in respect thereof) arise out of or are based upon any untrue statement or
alleged untrue statement of any material fact which was furnished in writing by the
Holder to the Company expressly for use in (and such information is contained in) the
Registration Statement under which such Registrable Securities were registered under the
Securities Act pursuant to this Agreement, any preliminary Prospectus or final Prospectus
contained therein, or any amendment or supplement thereof, or arise out of or are based
upon the omission or alleged omission to state therein a material fact required to be
stated therein or necessary to make the statements therein not misleading, and will
reimburse the Company and each such person for any reasonable legal or other expenses
incurred by them in connection with investigating or defending any such loss, claim,
damage, liability or action, provided, however, that the Holder will be liable in any
such case if and only to the extent that any such loss, claim, damage or liability arises
out of or is based upon an untrue statement or alleged untrue statement or omission or
alleged omission so made in conformity with information furnished in writing to the
Company by or on behalf of the Holder specifically for use in any such document.  </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;14.3 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Promptly
after receipt by a party entitled to claim indemnification hereunder (an <B>&#147;Indemnified
Party&#148;</B>) of notice of the commencement of any action, such Indemnified Party
shall, if a claim for indemnification in respect thereof is to be made against a party
hereto obligated to indemnify such Indemnified Party (an <B>&#147;Indemnifying Party&#148;</B>),
notify the Indemnifying Party in writing thereof, but the omission so to notify the
Indemnifying Party shall not relieve it from any liability which it may have to such
Indemnified Party hereunder, except for any liability which it may have to such
Indemnified Party if and to the extent the Indemnifying Party is substantially prejudiced
by such omission. In case any such action shall be brought against any Indemnified Party
and it shall notify the Indemnifying Party of the commencement thereof, the Indemnifying
Party shall be entitled to participate in and, to the extent it shall wish, to assume and
undertake the defense thereof with counsel reasonably satisfactory to the Indemnified
Party, and, after notice from the Indemnifying Party to such Indemnified Party of its
election so to assume and undertake the defense thereof, the Indemnifying Party shall not
be liable to such Indemnified Party for any legal expenses subsequently incurred by such
Indemnified Party in connection with the defense thereof; if the Indemnified Party
retains its own counsel, then the Indemnified Party shall pay all fees, costs and
expenses of such counsel, provided, however, that, if the defendants in any such action
include both the Indemnified Party and the Indemnifying Party and the Indemnified Party
shall have reasonably concluded that there may be reasonable defenses available to it
which are different from or additional to those available to the Indemnifying Party or if
the interests of the Indemnified Party reasonably may be deemed to conflict with the
interests of the Indemnifying Party, the Indemnified Party shall have the right to select
one separate counsel and to assume such legal defenses and otherwise to participate in
the defense of such action, with the reasonable expenses and fees of such separate
counsel and other expenses related to such participation to be reimbursed by the
Indemnifying Party as incurred.  </FONT></P>

<p align=center>
<font size=2>- 17 -</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px"><HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<page>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;14.4 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
order to provide for just and equitable contribution in the event of joint liability
under the Securities Act in any case in which that an Indemnified Party or any officer,
director or controlling person thereof, makes a claim for indemnification pursuant to
this Section 6 but it is judicially determined (by the entry of a final judgment or
decree by a court of competent jurisdiction and the expiration of time to appeal or the
denial of the last right of appeal) that such indemnification may not be enforced,
notwithstanding the fact that this Section 6 provides for indemnification in such case,
then the Indemnifying Party will contribute to the aggregate losses, claims, damages or
liabilities to which it may be subject (after contribution from others) in such
proportion as is appropriate to reflect the relative fault of the Indemnifying Party and
the relative fault of the Indemnified Party as well as any other relevant equitable
considerations. Relative fault shall be determined by reference to, among other things,
whether any untrue statement or omission or alleged untrue statement of a material fact
or the omission to state a material fact relates to information provided by the
Indemnifying Party or the Indemnified Party, and the parties&#146; relative intent,
knowledge, access to information and opportunity to correct or prevent such statement or
omission. Notwithstanding the foregoing, no person or entity guilty of fraudulent
misrepresentation (within the meaning of Section 11(f) of the Act) will be entitled to
contribution from any person or entity who was not guilty of such fraudulent
misrepresentation.  </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;14.5 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
provisions of this Section 6 will remain in full force and effect and survive the sale by
the Holder of the Registrable Securities covered by the Registration Statement.  </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE="2">15. &nbsp;&nbsp;&nbsp;&nbsp;<U>Miscellaneous</U>. </FONT> </P>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;15.1 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Remedies</U>.
In the event of a breach by the Company or by a Holder, of any of their respective
obligations under this Agreement, each Holder or the Company, as the case may be, in
addition to being entitled to exercise all rights granted by law and under this
Agreement, including recovery of damages, will be entitled to specific performance of its
rights under this Agreement.  </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;15.2 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Compliance</U>.
Each Holder covenants and agrees that it will comply with the prospectus delivery
requirements of the Securities Act as applicable to it in connection with sales of
Registrable Securities pursuant to the Registration Statement.  </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;15.3 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Discontinued
Disposition</U>. Each Holder agrees by its acquisition of such Registrable Securities
that, upon receipt of a notice from the Company of the occurrence of a Discontinuation
Event (as defined below), such Holder will forthwith discontinue disposition of such
Registrable Securities under the applicable Registration Statement until such Holder&#146;s
receipt of the copies of the supplemented Prospectus and/or amended Registration
Statement or until it is advised in writing by the Company that the use of the applicable
Prospectus may be resumed, and, in either case, has received copies of any additional or
supplemental filings that are incorporated or deemed to be incorporated by reference in
such Prospectus or Registration Statement. The Company may provide appropriate stop
orders to enforce the provisions of this paragraph. For purposes of this Section 7(c), a
&#147;Discontinuation Event&#148;shall mean (i) when the Commission notifies the Company
whether there will be a &#147;review&#148; of such Registration Statement and whenever
the Commission comments in writing on such Registration Statement; (ii) any request by
the Commission or any other Federal or state governmental authority for amendments or
supplements to such Registration Statement or Prospectus or for additional information;
(iii) the issuance by the Commission of any stop order suspending the effectiveness of
such Registration Statement covering any or all of the Registrable Securities or the
initiation of any Proceedings for that purpose; (iv) the receipt by the Company of any
notification with respect to the suspension of the qualification or exemption from
qualification of any of the Registrable Securities for sale in any jurisdiction, or the
initiation or threatening of any Proceeding for such purpose; (v) the occurrence of any
event or passage of time that makes the financial statements included in such
Registration Statement ineligible for inclusion therein or any statement made in such
Registration Statement or Prospectus or any document incorporated or deemed to be
incorporated therein by reference untrue in any material respect or that requires any
revisions to such Registration Statement, Prospectus or other documents so that, in the
case of such Registration Statement or Prospectus, as the case may be, it will not
contain any untrue statement of a material fact or omit to state any material fact
required to be stated therein or necessary to make the statements therein, in light of
the circumstances under which they were made, not misleading;  </FONT></P>


<p align=center>
<font size=2>- 18 -</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px"><HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<page>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;15.4 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Amendments
and Waivers</U>. The provisions of this Agreement may not be amended, modified or
supplemented, and waivers or consents to departures from the provisions hereof may not be
given, unless the same shall be in writing and signed by the Company and the Majority
Holders. Notwithstanding the foregoing, a waiver or consent to depart from the provisions
hereof with respect to a matter that relates exclusively to the rights of certain Holders
and that does not directly or indirectly affect the rights of other Holders may be given
by Holders of at least a majority of the Registrable Securities to which such waiver or
consent relates; provided, however, that the provisions of this sentence may not be
amended, modified, or supplemented except in accordance with the provisions of the
immediately preceding sentence.  </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;15.5 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Notices</U>.
Any notice or request hereunder may be given to the Company or the Investor at the
respective addresses set forth for such Investor in the Share Purchase Agreement and in
accordance with the notice provisions stipulated therein.  </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;15.6 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Successors
and Assigns.</U>This Agreement shall inure to the benefit of and be binding upon the
successors and permitted assigns of each of the parties hereto. The Company may not
assign its rights or obligations hereunder without the prior written consent of each
Holder. Each Holder may not assign its respective rights hereunder (or any part thereof)
without the prior written consent of the Company.  </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;15.7 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Execution
and Counterparts</U>. This Agreement may be executed in any number of counterparts, each
of which when so executed shall be deemed to be an original and, all of which taken
together shall constitute one and the same Agreement. In the event that any signature is
delivered by facsimile transmission, such signature shall create a valid binding
obligation of the party executing (or on whose behalf such signature is executed) the
same with the same force and effect as if such facsimile signature were the original
thereof.  </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;15.8 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Governing
Law</U>. All questions concerning the construction, validity, enforcement and
interpretation of this Agreement shall be governed by and construed and enforced in
accordance with the internal laws of the State of Israel, without regard to the
principles of conflicts of law thereof. Each party irrevocably agrees that all
Proceedings concerning the interpretations, enforcement and defense of the transactions
contemplated by this Agreement shall be commenced exclusively in the competent court of
Tel Aviv-Jaffa district only.  </FONT></P>

<p align=center>
<font size=2>- 19 -</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px"><HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<page>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;15.9 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Severability</U>.
If any term, provision, covenant or restriction of this Agreement is held by a court of
competent jurisdiction to be invalid, illegal, void or unenforceable, the remainder of
the terms, provisions, covenants and restrictions set forth herein shall remain in full
force and effect and shall in no way be affected, impaired or invalidated, and the
parties hereto shall use their reasonable efforts to find and employ an alternative means
to achieve the same or substantially the same result as that contemplated by such term,
provision, covenant or restriction. It is hereby stipulated and declared to be the
intention of the parties that they would have executed the remaining terms, provisions,
covenants and restrictions without including any of such that may be hereafter declared
invalid, illegal, void or unenforceable.  </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;15.10 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Headings</U>.
The headings in this Agreement are for convenience of reference only and shall not limit
or otherwise affect the meaning hereof.  </FONT></P>

<P align=center><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>[BALANCE OF PAGE INTENTIONALLY LEFT BLANK;
<BR>SIGNATURE PAGE FOLLOWS]</B> </FONT></P>

<p align=center>
<font size=2>- 20 -</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px"><HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<page>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Default" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;IN
WITNESS WHEREOF, the parties have executed this Registration Rights Agreement as of the
date first written above. </FONT></P>





<TABLE WIDTH="100%" BORDER="0" CELLPADDING="0" CELLSPACING="0">
<TR VALIGN="BOTTOM">
     <TH WIDTH="6%"></TH>
     <TH WIDTH="44%"></TH>
     <TH WIDTH="6%"></TH>
     <TH WIDTH="44%"></TH></TR>
<TR VALIGN="TOP">
     <TD colspan=2><FONT FACE="Times New Roman, Times, Serif" SIZE="2">B.O.S. BETTER ONLINE SOLUTIONS LTD. <BR><BR></FONT></TD>
     <TD  colspan=2><FONT FACE="Times New Roman, Times, Serif" SIZE="2">SG PRIVATE BANKING (SUISSE) S.A.<BR><BR></FONT></TD>
</TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">By:</FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">_________________________</FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">By:</FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">_________________________</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Name:</FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">_________________________</FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Name:</FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">_________________________</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Title:</FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">_________________________</FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2"> Title:</FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">_________________________</FONT></TD></TR>
</TABLE>
<BR>




<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR VALIGN=Bottom>
     <TH WIDTH=10% ><FONT FACE="Times New Roman"></FONT></TH>
     <TH WIDTH=40% ><FONT FACE="Times New Roman"></FONT></TH>
     <TH WIDTH=50% ><FONT FACE="Times New Roman"></FONT></TH>
</TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT colspan=2><FONT FACE="Times New Roman" SIZE="2"><I>Address for Notices:</I> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE="2"><I>Address for Notices:</I> </FONT></TD>
</TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT" WIDTH="10%"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT colspan=2><FONT FACE="Times New Roman" SIZE=2>20 Freiman Street</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Avenue de Rumine 20</FONT></TD>
</TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT colspan=2><FONT FACE="Times New Roman" SIZE=2>Rishon Lezion 75101, Israel</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Case Postale 220, 1001 Switzerland</FONT></TD>
</TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Attention:</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Eyal Cohen, CFO</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Attention:</FONT></TD>
</TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Facsimile:</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>(972) 3 954-1003</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Facsimile:</FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 2-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=50%>&nbsp;</TD>
<TD WIDTH=50%>
<FONT FACE="Times New Roman, Times, Serif" SIZE="2">[Additional Investors]
<BR>
<BR>By:
<BR>Name:
<BR>Title:
<BR>
<BR><I>Address for Notices:


</I><BR>
<BR>Attention:
<BR>Facsimile: </FONT></TD>
</TR>
</TABLE>
<BR>

<p align=center>
<font size=2>- 21 -</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px"><HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<page>

<!-- MARKER FORMAT-SHEET="Head Major Center Bold 1-TNR" FSL="Default" -->
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><U>Schedule 1</U> </FONT> </H1>



<TABLE align=center CELLPADDING=5 CELLSPACING=0 BORDER=1 WIDTH=600>
<TR VALIGN=Bottom>
     <TD WIDTH=50% ALIGN=left><FONT FACE="Times New Roman" SIZE=2>INVESTOR'S NAME</FONT></TD>
     <TD WIDTH=50% ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=2>NO. OF ORDINARY SHARES<BR>PURCHASED</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=left><FONT FACE="Times New Roman" SIZE=2>SG PRIVATE BANKING (SUISSE) S.A.</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=2>226,415</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=left><FONT FACE="Times New Roman" SIZE=2>[Investor]</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=left><FONT FACE="Times New Roman" SIZE=2>Total</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
</TABLE>
<BR>


<p align=center>
<font size=2>- 22- </font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px"><HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">

</body>
</html>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-4.4
<SEQUENCE>3
<FILENAME>exhibit_4-4.htm
<TEXT>
<HTML>
<HEAD>
     <!-- Created by EDGAR Ease Plus (EDGAR Ease+) -->
     <!-- Project:        \\Backup\office\EDGAR Filing\BOS better online solutions Ltd\85456\a85456.eep -->
     <!-- Control Number: 85456                                                            -->
     <!-- Rev Number:     1                                                                -->
     <!-- Client Name:    BOS better online solutions Ltd                                  -->
     <!-- Project Name:   F-3                                                              -->
     <!-- Firm Name:      Zadok-Keinan Ltd                                                 -->
     <TITLE>F-3</TITLE>
</HEAD>
<BODY>

<!-- MARKER FORMAT-SHEET="Scotch Rule Top-TNR" FSL="Workstation" -->
<HR ALIGN=LEFT WIDTH=100% SIZE=4 NOSHADE STYLE="margin-top: -5px">
<HR ALIGN=LEFT WIDTH=100% SIZE=1 NOSHADE STYLE="margin-top: -10px">

<!-- MARKER FORMAT-SHEET="Head Left-TNR" FSL="Workstation" -->
<P ALIGN=right><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><U><B>Exhibit 4.4</B></U> </FONT> </P>

<IMG SRC="logo.jpg"><BR><BR>

<!-- MARKER FORMAT-SHEET="Head Left-TNR" FSL="Default" -->
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Rishon Lezion, June 3,
2008 </FONT></P>


<P><FONT FACE="Times New Roman, Times, Serif" SIZE="2">T.F.E. Holdings Ltd.
<BR>5 Havradim St.
<BR><U>Ganey Yehuda, POB 6567, 56905</U> </FONT>
</P>

<!-- MARKER FORMAT-SHEET="Para Hang Lv 3-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=15%><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=80%><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><U><B>Finder
Fee Letter</B></U> </FONT> </TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Head Left-TNR" FSL="Workstation" -->
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Dear Erez, </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>This letter will confirm our mutual
understanding that T.F.E. Holdings Ltd.  Co. No.
513810273 operating by Mr. Erez Kuperberg (&#147;<B>Finder</B>&#148;), served B.O.S.
Better Online Solutions Ltd., a company incorporated under the laws of the State of Israel
(the &#147;<B>Company</B>&#148;), in connection with the introduction of Dimex Systems
(1988) Ltd. and its subsidiaries (&#147;<B>Dimex</B>&#148;) to the Company, for the
purpose of an acquisition transaction of all or part of the activity of and/or other
rights pertaining to Dimex by the Company (&#147;<B>Transaction</B>&#148;). </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Hang Lv 0-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1. </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>As
compensation to Finder for its services under this engagement letter, the
          Company agrees to pay Finder success fees and Finder agrees to receive such
          success fees, in a combination of shares and cash, as set forth below (the
          &#147;<B>Consideration</B>&#148;): </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Hang Lv 1-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<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>(I) </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>A
total of 110,000 Ordinary Shares of NIS 4 nominal value each, of the Company
          (the <B>&#147;Shares</B>&#148;); and </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Hang Lv 1-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<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>(II) </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>NIS
744,520 (the &#147;<B>Cash</B>&#148;) payable in 4 installments as follows: </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Hang Lv 2-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1) </FONT></TD>
<TD WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>A
cheque in the amount of NIS 186,130 dated June 2, 2008;  </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Hang Lv 2-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>2) </FONT></TD>
<TD WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>A
cheque in the amount of NIS 186,130 dated October 2, 2008;  </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Hang Lv 2-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>3) </FONT></TD>
<TD WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>A
cheque in the amount of NIS 186,130 dated February 2, 2009.  </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Hang Lv 2-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>4) </FONT></TD>
<TD WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>A
cheque in the amount of NIS 186,130 dated May 2, 2009.  </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Hang Lv 1-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<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>(III) </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Payment
shall be made against duly executed invoices and applicable VAT shall be           added.
In the event that tax deductions at source are required then such amounts           shall
be deducted from any payment made hereunder. </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The Consideration mentioned
hereinabove is the complete and full remuneration or compensation that the Finder is or
will be entitled to from the Company and its subsidiaries or affiliates in respect of the
Transaction or otherwise. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Hang Lv 0-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>2. </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The
Shares will be issued, subject to Sections 4 to 6 below, as soon as           practicably
possible after the execution of this letter by the Company and           Finder. </FONT></TD>
</TR>
</TABLE>
<BR>



<p align=center>
<font size=2></font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px"><HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<page>

<IMG SRC="logo.jpg"><BR><BR>

<!-- MARKER FORMAT-SHEET="Para Hang Lv 0-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>3. </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Finder
recognizes that the information provided to it in connection with its           services
and this letter agreement whether in writing, orally or in any other           form,
which is not in the public domain (hereinafter &#147;<B>Confidential           Information</B>&#148;)
is confidential and Finder shall take all reasonable and           necessary steps to
prevent the disclosure and dissemination of such Confidential           Information to
any third party without (a) the Company&#146;s prior written           consent and (b)
such third party signing an NDA in terms which are satisfactory           to the Company. </FONT></TD>
</TR>
</TABLE>
<BR>


<!-- MARKER FORMAT-SHEET="Para Hang Lv 0-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>4. </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>4.1&nbsp;&nbsp;&nbsp;&nbsp;
Finder understands that (i) the Shares have not been registered under the
          Securities Act of 1933 as amended (the &#147;<B>Securities Act</B>&#148;), or
          under the laws of any other jurisdiction; (ii) such Shares cannot be sold,
          transferred or otherwise disposed of unless they are subsequently registered
          under the Securities Act and, where required, under the laws of other
          jurisdictions or unless an exemption from registration is then available; (iii)
          there is now no registration statement on file with the Securities and Exchange
          Commission with respect to the Shares to be issued to Finder. </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 1-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%>&nbsp;</TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
4.2&nbsp;&nbsp;&nbsp;&nbsp;
Finder acknowledges and agrees that the certificates representing the Shares shall bear
restrictive legends as counsel to the Company may determine are necessary or appropriate,
including without limitation, legends under applicable securities laws similar to the
following: </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 1-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%>&nbsp;</TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&#147;The
shares represented by this certificate have not been registered under the Securities Act
of 1933. The shares have been acquired for investment and may not be sold, transferred,
assigned or otherwise disposed of in the absence of an effective registration statement
with respect to the shares evidenced by this certificate, filed and made effective under
the Securities Act of 1933, or an opinion of the Company&#146;s counsel that registration
under such Act is not required.&#148; </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 1-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%>&nbsp;</TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
4.3&nbsp;&nbsp;&nbsp;&nbsp;
The Company will not register any transfer of Shares not made pursuant to registration
under the Securities Act, or pursuant to an available exemption from registration. </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Hang Lv 0-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>5. </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>If
at any time following the date hereof the Company shall determine to prepare
          and file with the United States Securities and Exchange Commission a
          registration statement relating to an offering for its own account or the
          account of others under the Securities Act of any of its equity securities,
          other than on Form F-4 or Form S-8 (each as promulgated under the Securities
          Act) or their then equivalents relating to equity securities to be issued
solely           in connection with any acquisition of any entity or business or equity
          securities issuable in connection with stock option or other employee benefit
          plans, then the Company shall include in such registration statement all of the
          Shares to the extent the Company may do so without violating registration
rights           of others which exist as of the date of this letter agreement, subject
to           customary underwriter cutbacks applicable to all holders of registration
rights           and, if deemed necessary, and subject to obtaining&nbsp; the consent of
any           other selling stockholder(s) to such inclusion. The Company&#146;s
obligations           under this section shall terminate at such time as the Finder may
sell the           Shares pursuant to Rule 144 under the Securities Act without any
volume           limitation. </FONT></TD>
</TR>
</TABLE>
<BR>

<p align=center>
<font size=2></font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px"><HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<page>

<IMG SRC="logo.jpg"><BR><BR>

<!-- MARKER FORMAT-SHEET="Para Hang Lv 0-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>6. </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Finder
represents and warrants that the Shares are being received for investment
          purposes. The Shares are not being purchased with a view to, or for sale in
          connection with, any distribution or other disposition thereof. Finder has no
          present plans to enter into any contract, undertaking, agreement or arrangement
          for any such resale, distribution or other disposition and it will not divide
          its interest in the Company&#146;s Shares with others, resell or otherwise
          distribute the Shares in violation of federal or state US Securities laws or
the           Israeli Securities Law. </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Hang Lv 0-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>7. </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Upon
payment of the Cash and issuance of the Shares hereunder, Finder waives any           and
all rights, claims and/or demands of any kind whatsoever, in connection,
          directly or indirectly, with its services as Finder, Dimex, the Transaction,
          and/or the Consideration payable to it. </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Hang Lv 0-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>8.  </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The
Finder or any person acting on its behalf is an independent contractor and
                    is not and shall not be considered an employee, agent or legal
representative of                     the Company for any purpose. Finder may not assign
or delegate its rights and                     obligations hereunder. </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Hang Lv 0-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>9. </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>This
letter agreement and any claim or dispute of any kind or nature whatsoever
          arising out of, or relating to, this letter agreement or Finder&#146;s
          engagement hereunder, directly or indirectly, shall be exclusively governed by
          and construed in accordance with the laws of the State of Israel. The competent
          courts located in Tel Aviv, Israel shall have sole and exclusive jurisdiction
          regarding any dispute or claim arising hereunder. </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Signature (Single)" FSL="Workstation" -->
<TABLE WIDTH=100% CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=40%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<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>Very truly yours,<BR><BR>B.O.S. Better Online Solutions Ltd.<BR>By: Shmuel Koren<BR>President and CEO</FONT></TD>
</TR>
</TABLE>
<BR>









<!-- MARKER FORMAT-SHEET="Head Major Left Bold-TNR" FSL="Workstation" -->
<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Accepted and agreed to<BR>as
<BR>of the date first written above: </FONT></H1>

<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>________________________________
<BR>
<BR>By: ___________________________________
</FONT></P>

<p align=center>
<font size=2></font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px"><HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<page>


<IMG SRC="logo.jpg"><BR><BR>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>I the  undersigned,  Erez Kuperberg,
 I.D.  ______________  the sole  Shareholder of T.F.E.  Holdings Ltd.  hereby agree to
and  acknowledge the above and confirm that upon payment of the Cash and issuance of the
Shares hereunder,  to T.F.E.  Holdings Ltd., I waive any and all rights, claims and/or
demands of any kind whatsoever, in connection, directly or indirectly, with Finder&#146;s
services under the above letter agreement, Dimex, the Transaction, and/or the
Consideration payable to it.  </FONT></P>

<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>_____________________
<BR>Erez Kuperberg
<BR>Date: __________
</FONT></P>

<p align=center>
<font size=2></font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px"><HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">


</body>
</html>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>GRAPHIC
<SEQUENCE>4
<FILENAME>logo.jpg
<DESCRIPTION>GRAPHIC
<TEXT>
begin 644 logo.jpg
M_]C_X``02D9)1@`!`0$`8`!@``#_VP!#``@&!@<&!0@'!P<)"0@*#!0-#`L+
M#!D2$P\4'1H?'AT:'!P@)"XG("(L(QP<*#<I+#`Q-#0T'R<Y/3@R/"XS-#+_
MVP!#`0D)"0P+#!@-#1@R(1PA,C(R,C(R,C(R,C(R,C(R,C(R,C(R,C(R,C(R
M,C(R,C(R,C(R,C(R,C(R,C(R,C(R,C+_P``1"`!8`(H#`2(``A$!`Q$!_\0`
M'P```04!`0$!`0$```````````$"`P0%!@<("0H+_\0`M1```@$#`P($`P4%
M!`0```%]`0(#``01!1(A,4$&$U%A!R)Q%#*!D:$((T*QP152T?`D,V)R@@D*
M%A<8&1HE)B<H*2HT-38W.#DZ0T1%1D=(24I35%565UA96F-D969G:&EJ<W1U
M=G=X>7J#A(6&AXB)BI*3E)66EYB9FJ*CI*6FIZBIJK*SM+6VM[BYNL+#Q,7&
MQ\C)RM+3U-76U]C9VN'BX^3EYN?HZ>KQ\O/T]?;W^/GZ_\0`'P$``P$!`0$!
M`0$!`0````````$"`P0%!@<("0H+_\0`M1$``@$"!`0#!`<%!`0``0)W``$"
M`Q$$!2$Q!A)!40=A<1,B,H$(%$*1H;'!"2,S4O`58G+1"A8D-.$E\1<8&1HF
M)R@I*C4V-S@Y.D-$149'2$E*4U155E=865IC9&5F9VAI:G-T=79W>'EZ@H.$
MA8:'B(F*DI.4E9:7F)F:HJ.DI::GJ*FJLK.TM;:WN+FZPL/$Q<;'R,G*TM/4
MU=;7V-G:XN/DY>;GZ.GJ\O/T]?;W^/GZ_]H`#`,!``(1`Q$`/P#W^BBB@`HH
MHH`****`"F3316\32S2)'&O5W;`'XTR\NHK&SENICB.)2QY&3[#/<]!7E^KZ
MU=:Q<L\S%80?DA!^51_4^_\`^J@#I-2\=!7V:;;AP#S+,#@]>BCGT.2?PKG+
MCQ#J]R5,FH3#'3RSY?\`Z#C-:.E^#;V^B\VY?[(AS@.A+G_@/&!U[]NE=-;^
M#]'A3#PR3-G.Z20Y^G&!^E(1YK2@E6#*2"#D$=J]:_L?3/\`H'6?_?A?\*@N
M/#FCW)4R6$0V]/+S'^>W&:+`87@U]4NY9KF>\FDM%^3;(^XL_P".2``<\8[=
M:ZJ[O+6PM7NKVYAMK=,;Y9G"(N3@9)X')`_&G6UM#:6Z6]O&(XD&%4=J=-#%
M<0203QI+#(I1XW4,K*1@@@]01VIKS&/HKC9HKCP&?M-K]INO#`4">V+M++I^
M`!YD98EFBP!N3.5^\.,BNOAFBN((YX)$EAD4.DB,&5E(R"".H([U4HVU6Q,9
M7T>X^BBBI*"BBOC[7K^+5/$6IZA`KK#=7<LZ*X`8*SEAG&><&NC#X?VS>MK&
M%>M[)+2]S[!HKQF+X'VEWX6MIXKZ\MM9DMDD>.XVF)9"N2A`4,.>,Y./0]*\
MUTOQ-XC\':H(+>^N(393LLEE)(6A+`D,K)G![C(Y[@@X-:0PL:E^25VO(B6(
M<+<\=SZPHK/TW5HK[P[9ZQ/LM89[1+I]\@VQ*R!CECC@`]>.E>/>,?C5/.[V
M7A=?)AY5KV9/G;G@QJ>%!`/+`GYNBD5C3H3J2M%&LZT8*[.W\<ZD9+F'3D(V
M1#S),?WCT'M@<_\``O:K?A3PVD4<6IWBJTC`/`G4*.H8^_IZ?7IQ/A.PU*]G
MTZTUEKB6]=MUQ]J=C(5Y;#$\YV\8[=.*]`\=>%Y?%WAF738;U[67<)(^?W<C
M#HLF.2OTZ'!P<8K/E7/RMZ=RN9\O,D=+17RWHGB?Q'\/-=>U)E46[LEQIT[D
MQ,3C)P#@'@$,/;J#@_1NG>)=-U+PLGB*.1DT\P-.[.AS&$SO!`Y)!5AQG..,
MUM6P\J=GNF9TJZJ7Z-&O69/XCT.UO#9W&LZ=%=!@I@DND5P3T&TG.>17B=UK
M6N?%_P`6'1K"X>PT95+M&6P!$&'[R10?G;.W"]`<8[L>MF^!/AUH)!!J.J),
M5(1G>-E5L<$@(,C/;(^HJG0A"RJ2LQ*M*>M-:'J5%><?"7PIJOAFSU8:G)(@
M>Z,4,&3Y9"<&50>S<`$@'"@]"*]'K"I%1DTG<VA)RC=JPR:&*XADAFC22*12
MCHZ@JRD8((/4&O./"5Q)X/\`'E]X)G9CIUT&O-(W,3L4Y+1@98@</R2.4)QE
MZ]*KQWXUW/\`9.M^%=7MX83=P222!G7[_EM&RJQ&"5!)XSW/K6F'7.W3[F=9
M\JY^Q[%138I8YHDEB=9(W4,CJ<A@>A![BG5@;&7XEU)M'\,:IJ*21I+;6LDD
M1D^[O"G:/?+8&.^:^4M"L(]5\0:;ITKLD=W=10.R]0&<*2/?FOH+XR7\=G\.
M[F!T9FO)XH$(Z*0WF9/MB,C\17A_@GPS<^+/$L.G6UPUKM1II+E5W&$*.#C(
MS\Q4<'OFO3P:4:4IO0\_%-RJ**/ICQ-XBLO"^AW&IWLB#RU/E1,V#-)CY47@
MG)/L<#)/`-?-7A?POJWCOQ!)'$['<_FWE[("PCW$DL?5B<X'<^@!(Z#QG\-]
M3\%P1ZY'J$>J0K*HE>6UR48YP75MRE>`,L>K`8KL?A9\1_[4N;?PS>6%I:R"
M-S;R6D?EHY`W$&-1M#'YV)&!VP*5->RI.=+7S_X`YOVE11J:&=\8?$<6EZ?9
M^"M)*);1P)]I48<HBX\J/))(/RACD9QLYP3G&^"WAN/5O$\VJW`1H=+561&&
M<RMD(<$$8`#'J"&"FN4\=W<][X\UV6X?>ZWLL0.`/E1BBCCT50/PKW+X-V$5
MI\.K6>-G+7D\L\@8C`8-Y?'MB,?CFJJ?N</9;O\`4FG^]KW>R+MPGV7XCP2R
MLJI,H9#GU0H!]<C^5=C6)XETZ6\LX[JTS]LLW\V+`R3W(`]>`>AZ8[UHZ;?Q
M:GI\-W%C#KRN<[6[C\#7EGHGS_\`&VS@MO'J2Q)M>ZLHY93DG<P9DS[?*BC\
M*SM(U>X7X1>(]*CM/,A%];/)*I/[L/W/MF!!]7J#XG:L=7^(.J.&E,5M)]EC
M63^'R_E8#GH7#D?6O1?A5X2M-4^&NI1:E;$1:O,5\Q'&YHTP$(ZX*R!R,CJ.
M01BO7<E3H1<O(\Q)SK24?,\R\!>+?^$-\2KJ+V_GV\D9@G0??"$@DKVW`J.#
MP>1QG(^EM#\1Z1XDM#<Z1?Q72+]]5.'3D@;E/*YP<9'..*^=O%/PP\0^&/-G
M\C[?IZ9/VJV!.U1N.73JN`N2>5&0-QKE=-U*\TC4(;_3[A[>ZA;<DB'D?T(/
M0@\$<&BK0AB%SP>H4ZTZ+Y9+0^QZ*Q?"6N_\)+X5T_5S'Y;W$?[Q<8`=25?'
M)XW*<<YQBMJO)DG%V9Z2::N@KP3XZZLMSXBT_2T,;"R@,CE6RRO(1\K#M\J*
M?^!5ZUXP\8Z=X.TEKN\827#@BWM5;#S-_11W;M[D@'YW\):5<>-?'MO'>`SB
MXN&NKY]I`*9W/G;C;N^Z",<L*[<'3LW5ELCEQ4[VIK=GTOX>LIM-\,Z58W``
MGMK.&&0*<C<J`'!^HK2HHKB;N[G4E96/&OCWJ3"'1M+2X3:S27$L(P6R`%1C
MW`YD`['GTXI?`2PBDU36M0+/YT$$<"J"-I61BQS[YC7'U-6_BEX+\4>*?%RW
M>F:.9+6"U2!93<Q+YA!9B<%@1R^.?2J_A;2OB?X0TJXT_3?#EB5GD,K3331-
M("5"\$2@8&,@$'DFO13C]6Y%)7?F<+4O;\[3MZ'3_&K6H;#P5_9A`:?4I555
MR1A$8.S=/4(,?[7M7FGP=TZZN_B#:7<,1:"RCDDG?LH9&0#ZDL./8^E;/_"K
M?''BS4?M_B2^AMY"P1FGE$CA.OR*GR@9)^7*\YKUWPKX1TGP?I[VFF1N3(VZ
M6>4AI)3VW$`<`'```'7N23+J0HT73B[ME*$ZM53:LD?.7Q#TJZTGQYK$=TF/
M/N7NHF`.'21BP()`SC.#CC(([5[?\'[N"Y^&]C%$^Y[:2:*88(VL9"^/?Y74
M\>M6O'W@&S\::>&4I;ZK`I%O<D<$==CXZJ3^*DY'<'RK2M`^(GPYU&6]L-+>
MYA=C"Z0_Z1'..=K%$.\`<D,0I&<'J06YQKT5&]FA*$J-5RM=,^AJY'Q+JUCX
M1E%Y+J26D6H/Y9MP!O+]Y4R"`1E<[AM]3DBN2;XA_$&Z2TM[/P+-%=L0LLEQ
M;S>4Q/&1G;L&>[,0/6LBV^%WB[Q;K`U+QC?B`;@CCS%>4H,'"!,HH.3WX.3M
M/?".'2UJ227XFTJS>E-7.7M/AEJM_P")X=-M)5N--F^=-6B0M#Y6,Y./NOC^
M`D')'."&KZ!T^ZTK2M2M_"=E&8I(+$7$<04[1$&V?>[G/XGK4N@>'].\-:5#
MI^G0[(HUVEV.7D.226/<Y)/H,\`#BO'O$>D^/]!^(=[XHT^RFNA+<;8WM5\U
M98<#;&\:_-@*JJ20.5R#G!JW-XA\LG:VWF0H*@KI;[GNM?+GQ-TS3](\?:A:
M:;&L4`V.843:L3,@8A>>G.>,`9P!Q70WGQM\5".6V-CIUK<@-&[>2^^-NF0K
M,0"/0@\]NU>9S32W$\D\\CRS2,7>1V+,S$Y))/4D]ZZ,)AYTY.4C#$UX5$E$
M^AO"WBKPMX+\%:/IFH>(+1[@1,SBW/G[&9B[*?*W`8+XR3SC(KG?$WQRW1O;
M>&[)D)!'VN[`RIY&509']T@L?4%:\FT_1M4U?S/[-TV[O/+QO^SP-)LSG&<#
MC.#U]*[[0_@EXAOI%;59;?3(`Q#*7$LI&,@@*=N">.6!Z\=,N5&A"3E4>O\`
M70%5K37+!:'#EM9\7>(`"9]0U2\DP/5C_)5`^@4#L!7T?X`\#P>"M(>,R^?J
M%UM:ZE!.S(SA5']T9//4Y)..`+WA?P7HOA&U\K3;;,S9WW4P#3."1P6P..!P
M,#C.,Y-=!7)B,3[1<D=$=-##\GO2W"BBBN0Z1H=2Y0,-X`)7/(!S@_H?RHCD
M25=T;JZY(RIR,@X/ZUBOI=S)K1O5,D7G(\4Q,H.Q%==NS'(W*#WXW$YR.:46
MDZK;:1%:V\DB2I#&(]L@54=I"TA;!YP-H[]3@')H`Z9)DD>5$;+1-L<8Z'`/
M\B*AM[ZWNG5879BT0F'R,!L)(!R1WP>.O%8#Z1J4<LLUHT\;2F[ED7S\`LV1
M$``<9Z'/;UX`JQ_9VI6\[R0SRR%I88RSD-F-(_O'Y@>7)R,^O4$@@&\[K&C.
M[!44$LS'``]3212QS)OBD21?56!'3/\`(BLZYANCHT%H$EF,B"&X)*^8%*$,
M>6QNS[GKGFET2*]BLPE[O#*-@5R&+<D[\[FZ@CC/!!QQ0!<6\M7E$2W,+2%F
M0('!.Y>HQZCO3(]2L)<>7>VSY8(-LJGYCT'7J<'\JYZ#3-5-K<K>VZW$KVTI
MA8%!Y,DA.Y1SSG(.>W(%:1T^XMYM+MXPUS:6[,[-)LW)MC*H!C&>I[$Y[T`:
M?VNV,BQ_:(O,<E57>,DCJ`/;O3Y)HHL^9(B84N=S`?*.I^@R/SKG;32;HV.D
MV+0/"EI*+F661E.6!)VJ%)SDL>3C`'>K]Y933:M!=VPEAFB98WD)4I+$3EAC
M.1CUQU([<@`TYI4@ADFE;;'&I9CZ`#)HAF2X@CFB;='(H=3C&01D5S*V6MG2
MYA+%))<2VTB2*]SD.[O@87.U=J#/&/O8]:L*NL">6-K25H!<2NI2X5`8A&5C
M08.1DX/;!P?H`;@N86F2)9`SN&("\_=(#<^Q(%2USMKI5]:P01PM+%&+:&)X
MEEXW-)F9ASP0.X]>.E,:PU>=)M\EW'@7,D*K<!2"Q'EHQ#<X^8]<#(&>U`'2
MT5D:=;:A;ZB1.[RVWD`"21SNWC:I^7<1@[=V<9^;ZUKT`%%%%`!1110`4444
?`%%%%`!1110`4444`%%%%`!1110`4444`%%%%`'_V3\_
`
end
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-5.1
<SEQUENCE>5
<FILENAME>exhibit_5-1.htm
<TEXT>
<HTML>
<HEAD>
     <!-- Created by EDGAR Ease Plus (EDGAR Ease+) -->
     <!-- Project:        F:\EDGAR Filing\BOS better online solutions Ltd\85456\a85456.eep -->
     <!-- Control Number: 85456                                                            -->
     <!-- Rev Number:     1                                                                -->
     <!-- Client Name:    BOS better online solutions Ltd                                  -->
     <!-- Project Name:   F-3                                                              -->
     <!-- Firm Name:      Zadok-Keinan Ltd                                                 -->
     <TITLE>F-3</TITLE>
</HEAD>
<BODY>

<DIV STYLE="POSITION:RELATIVE;FLOAT:LEFT;WIDTH:20%">

<P><FONT SIZE=2><IMG SRC="img001.jpg" ALT="(APM &amp; CO. LOGO)"></FONT></P>

<TABLE BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
 <TR style="font-size:1px">
 <TD WIDTH="100%" VALIGN=TOP>
 <P ALIGN=RIGHT>&nbsp;</P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=gray ALIGN=CENTER>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P ALIGN=RIGHT><FONT SIZE=1><B>(1923-2007) Nahum Amit</B></FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P ALIGN=RIGHT><FONT SIZE=1><B>Aharon Pollak</B></FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P ALIGN=RIGHT><FONT SIZE=1><B>Moshe Matalon</B></FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P ALIGN=RIGHT><FONT SIZE=1><B>Doron Levy</B></FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P ALIGN=RIGHT><FONT SIZE=1><B>Eldad Koresh</B></FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P ALIGN=RIGHT><FONT SIZE=1><B>Yonatan Altman</B></FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P ALIGN=RIGHT><FONT SIZE=1><B>Daniel Marcus</B></FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P ALIGN=RIGHT><FONT SIZE=1><B>Ian Rostowsky</B></FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P ALIGN=RIGHT><FONT SIZE=1><B>Anat Sterenlib-Molkho</B></FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P ALIGN=RIGHT><FONT SIZE=1><B>**Shlomo Landress</B></FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P ALIGN=RIGHT><FONT SIZE=1><B>Asaf Biger</B></FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P ALIGN=RIGHT><FONT SIZE=1><B>***Gal Oren</B></FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P ALIGN=RIGHT><FONT SIZE=1><B>Ofra Cohen</B></FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P ALIGN=RIGHT><FONT SIZE=1><B>**Maya Issacharov</B></FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P ALIGN=RIGHT><FONT SIZE=1><B>Roy Tannenbaum</B></FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P ALIGN=RIGHT><FONT SIZE=1><B>Orit Israeli</B></FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P ALIGN=RIGHT><FONT SIZE=1><B>Eitan Asnafy</B></FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P ALIGN=RIGHT><FONT SIZE=1><B>**Joann R. Blasberg</B></FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P ALIGN=RIGHT><FONT SIZE=1><B>Ruth Amit-Fogel</B></FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P ALIGN=RIGHT><FONT SIZE=1><B>**Joseph Z. Hellerstein</B></FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P ALIGN=RIGHT><FONT SIZE=1><B>Racheli Guz-Lavi</B></FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P ALIGN=RIGHT><FONT SIZE=1><B>Ronit Perel</B></FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P ALIGN=RIGHT><FONT SIZE=1><B>Osnat Daphne Levin</B></FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P ALIGN=RIGHT><FONT SIZE=1><B>**Noya Shamir</B></FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P ALIGN=RIGHT><FONT SIZE=1><B>Aya Reich Mina</B></FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P ALIGN=RIGHT><FONT SIZE=1><B>Elan Levi</B></FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P ALIGN=RIGHT><FONT SIZE=1><B>Tmira Gelman-Kellner</B></FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P ALIGN=RIGHT><FONT SIZE=1><B>Tamar Stachel</B></FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P ALIGN=RIGHT><FONT SIZE=1><B>Michal Boxer</B></FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P ALIGN=RIGHT><FONT SIZE=1><B>Michael Yavin</B></FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P ALIGN=RIGHT><FONT SIZE=1><B>Ofer Vilozny</B></FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P ALIGN=RIGHT><FONT SIZE=1><B>Stephen Barak Rozen</B></FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P ALIGN=RIGHT><FONT SIZE=1><B>**Talya Leader</B></FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P ALIGN=RIGHT><FONT SIZE=1><B>Aviad Ofir</B></FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P ALIGN=RIGHT><FONT SIZE=1><B>Gali Sokol Kamerman</B></FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P ALIGN=RIGHT><FONT SIZE=1><B>Dana Sagive</B></FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P ALIGN=RIGHT><FONT SIZE=1><B>Michal Rosenberg</B></FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P ALIGN=RIGHT><FONT SIZE=1><B>Yuval Nemlich</B></FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P ALIGN=RIGHT><FONT SIZE=1><B>Oded Uni</B></FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P ALIGN=RIGHT><FONT SIZE=1><B>Daniela Roth</B></FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P ALIGN=RIGHT><FONT SIZE=1><B>Hila David</B></FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P ALIGN=RIGHT><FONT SIZE=1><B>Ranit Kessous</B></FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P ALIGN=RIGHT><FONT SIZE=1><B>Shahar Avraham</B></FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P ALIGN=RIGHT><FONT SIZE=1><B>Naama Gil</B></FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P ALIGN=RIGHT><FONT SIZE=1><B>Hila Cohen</B></FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P ALIGN=RIGHT><FONT SIZE=1><B>Raphael Nejman</B></FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P ALIGN=RIGHT><FONT SIZE=1><B>Nirit Henig</B></FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P ALIGN=RIGHT><FONT SIZE=1><B>Gat Carmi</B></FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P ALIGN=RIGHT><FONT SIZE=1><B>Vered Danziger</B></FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P ALIGN=RIGHT><FONT SIZE=1><B>Yaron Alon</B></FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P ALIGN=RIGHT><FONT SIZE=1><B>Reut Gan</B></FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P ALIGN=RIGHT><FONT SIZE=1><B>Oded Griffel</B></FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P ALIGN=RIGHT><FONT SIZE=1><B>Benny Hadari</B></FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P ALIGN=RIGHT><FONT SIZE=1><B>Keren Levi</B></FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=gray ALIGN=CENTER>

 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P ALIGN=RIGHT><FONT SIZE=1><B>Etty Avni-Borowitz</B></FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P ALIGN=RIGHT><FONT SIZE=1><B>(1945 &#150; 2005)</B></FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=gray ALIGN=CENTER>

 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P ALIGN=RIGHT><FONT SIZE=1>**
 Also a member of the</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P ALIGN=RIGHT><FONT SIZE=1>New-York
 Bar</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P ALIGN=RIGHT><FONT SIZE=1>***Also
 a member</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P ALIGN=RIGHT><FONT SIZE=1>of
 the Law Society</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P ALIGN=RIGHT><FONT SIZE=1>of
 England &amp; Wales</FONT></P>
 </TD>
 </TR>
</TABLE>
</div>


<DIV STYLE="POSITION:RELATIVE;FLOAT:right;WIDTH:75%">

<P><FONT SIZE=3><B>Amit, Pollak, Matalon &amp; Co.</B></FONT><BR><FONT SIZE=2>Advocates and Notary</FONT></P>

<P ALIGN=RIGHT><FONT SIZE="2"><U><B>Exhibit 5.1</B></U> </FONT></P>

<P ALIGN=RIGHT><FONT SIZE=2>June 30, 2008 </FONT></P>

<P><FONT SIZE=2>B.O.S Better Online
Solutions Ltd.<BR>
20 Freiman Street <BR>
<U>Rishon LeZion 75100 Israel</U></FONT></P>

<P><FONT SIZE=2>Ladies and Gentlemen: </FONT></P>

<P><FONT SIZE=2>We have acted as Israeli
counsel to B.O.S. Better Online Solutions Ltd., an Israeli company (the
&#147;Company&#148;), in connection with the Registration Statement on Form F-3 (the
&#147;Registration Statement&#148;), filed by the Company with the Securities and
Exchange Commission on the date hereof. The Registration Statement relates to
the proposed offer and sale by the Company from time to time, as set forth in
the prospectus contained in the Registration Statement (the &#147;Prospectus&#148;) and
as shall be set forth in one or more supplements to the Prospectus, of up to a
$6,250,000 aggregate amount of Ordinary Shares of the Company, nominal value
NIS 4.00 per share (the &#147;Ordinary Shares&#148;), warrants to purchase Ordinary
Shares and units comprised of Ordinary Shares and warrants (the &#147;Securities&#148;). </FONT></P>

<P><FONT SIZE=2>In addition, the Registration
Statement relates to the resale from time to time by the selling shareholders identified
therein of up to 1,736,796 Ordinary Shares as follows: (i) up to 1,194,982 Ordinary
Shares, issued by the Company in private placements completed in June 2007 and December
2007 (the &#147;Outstanding Shares&#148;); and (ii) up to 541,814 Ordinary Shares issuable
upon exercise of warrants (the &#147;Warrants&#148;) held by certain selling shareholders
(the &#147;Underlying Shares&#148;). </FONT></P>

<P><FONT SIZE=2>In so acting, we have
examined such corporate documents and have made such investigation of matters
of fact and law as we have deemed relevant and necessary as a basis for the
opinion hereinafter set forth. </FONT></P>

<P><FONT SIZE=2>In such examination, we have
assumed the genuineness of all signatures, the legal capacity of natural
persons, the authenticity of all documents submitted to us as originals, the
conformity to original documents of all documents submitted to us as certified,
conformed or photostatic copies and the authenticity of the originals of such
latter documents. As to all questions of fact material to this opinion, we have
relied, without independent investigation, upon statements and certificates or
comparable documents of officers and representatives of the Company and upon
certificates of public officials. We have considered such questions of Israeli
law as we have deemed necessary for the purpose of rendering this opinion. </FONT></P>
</div>
<BR>
<BR clear=all>
<BR>
<TABLE ALIGN=CENTER BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
 <TR style="font-size:1px">
 <TD WIDTH="23%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 <TD WIDTH="4%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 <TD WIDTH="71%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=gray ALIGN=CENTER>

 </TD>
 <TD VALIGN=TOP>
 <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=gray ALIGN=CENTER>

 </TD>
 <TD VALIGN=TOP>
 <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=gray ALIGN=CENTER>

 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>Nitsba
 Tower, 19<SUP>th</SUP> Floor</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>Tel.</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>972
 3 568 9000</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>17
 Yitzhak Sadeh St.</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>Fax.</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>972
 3 568 9001</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>Tel Aviv
 67775 Israel</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
</TABLE>
<BR>
<HR WIDTH="100%" size="1" noshade style="margin-top: -2px">
<HR WIDTH="100%" size="4" noshade style="margin-top: -10px">
<P STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<TABLE ALIGN=CENTER BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="15%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="3%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="82%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2><IMG SRC="img001.jpg" ALT="(APM &amp; CO. LOGO)"></FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=3><B>Amit,
 Pollak, Matalon &amp; Co.</B></FONT><BR><FONT SIZE=2>Advocates and Notary</FONT></P>
</TD>
</TR>
</TABLE>

<BR>

<TABLE ALIGN=CENTER BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="25%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="70%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP colspan=2>
<P><FONT SIZE=2>We also have assumed that:
(i) at the time of execution, issuance and delivery of any Securities purchase
agreement, such agreement will have been duly authorized, executed and delivered by the
 Company; and (ii) at the time of the issuance and sale of any of the
 Securities, the terms of the Securities, and their issuance and sale, will
 have been established so as not to violate any applicable law or result in a
 default under or breach of any agreement or instrument binding upon the
 Company and so as to comply with any requirement or restriction imposed by
 any court or governmental body having jurisdiction over the Company.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP colspan=2>
<P><FONT SIZE=2>Based upon the foregoing,
 in reliance thereon and subject to the assumptions, comments, qualifications,
 limitations and exceptions stated herein and the effectiveness of the
 Registration Statement under the Securities Act of 1933, we are of the
 opinion that:</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(i)</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>the Outstanding Shares
 have been duly authorized and are validly issued, fully paid and
 nonassessable;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(ii)</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>the Underlying Shares,
 have been duly authorized and upon exercise of the Warrants in accordance
 with their terms, shall be validly issued, fully paid and nonassessable; and</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(iii)</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>With respect to the
 Securities, assuming the taking of all necessary corporate action to
 authorize and approve the issuance of any Security, the terms of the offering
 thereof and related matters; upon payment of the consideration therefor
 provided for in the applicable definitive purchase, underwriting or similar
 agreement approved by the board of directors and otherwise in accordance with
 the provisions of the applicable Securities, if any, such Securities will be
 validly issued, fully paid and non-assessable.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>

<TD VALIGN=TOP colspan=2>
<P><FONT SIZE=2>In addition to the
 assumptions, comments, qualifications, limitations and exceptions set forth
 above, the opinions set forth herein are further limited by, subject to and
 based upon the following assumptions, comments, qualifications, limitations
 and exceptions:</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(a)</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>We are members of the
 Israel Bar and we express no opinion as to any matter relating to the laws of
 any jurisdiction other than the laws of Israel and have not, for the purpose
 of giving this opinion, made any investigation of the laws of any other
 jurisdiction than Israel. The opinions set forth herein are made as of the
 date hereof and are subject to, and may be limited by, future changes in the
 factual matters set forth herein, and we undertake no duty to advise you of
 the same. The opinions expressed herein are based upon the law in effect (and
 published or otherwise generally available) on the date hereof, and we assume
 no obligation to revise or supplement these opinions should such law be
 changed by legislative action, judicial decision or otherwise. In rendering
 our opinions, we have not considered, and hereby disclaim any opinion as to,
 the application or impact of any laws, cases, decisions, rules or regulations
 of any other jurisdiction, court or administrative agency. This opinion is
 expressly limited to the matters set forth above, and we render no opinion,
 whether by implication or otherwise, as to any other matters. In addition, we
 render no opinion in relation to any representation made or given in the
 Registration Statement.</FONT></P>
</TD>
</TR>
</TABLE>

<P ALIGN=CENTER><FONT SIZE=2>- 2 -</FONT></P>

<HR WIDTH="100%" size="1" noshade style="margin-top: -2px">
<HR WIDTH="100%" size="4" noshade style="margin-top: -10px">
<P STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<TABLE ALIGN=CENTER BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="15%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="3%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="82%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2><IMG SRC="img001.jpg" ALT="(APM &amp; CO. LOGO)"></FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=3><B>Amit,
 Pollak, Matalon &amp; Co.</B></FONT><BR><FONT SIZE=2>Advocates and Notary</FONT></P>
</TD>
</TR>
</TABLE>

<BR>

<TABLE ALIGN=CENTER BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="25%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="70%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(b)</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>You have informed us that
 you intend to issue the Securities from time to time on a delayed or continuous
 basis, and this opinion is limited to the laws, including the rules and
 regulations, as in effect on the date hereof. We understand that prior to
 issuing any Securities you will afford us an opportunity to review the
 operative documents pursuant to which such Securities are to be issued
 (including the applicable prospectus supplement) and will file such
 supplement or amendment to this opinion (if any) as we may reasonably
 consider necessary or appropriate by reason of the terms of such Securities.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP colspan=2>
<P><FONT SIZE=2>This opinion is furnished
 to you solely in connection with the Registration Statement and is not to be
 used, circulated, quoted or otherwise referred to for any other purpose
 without our express prior written permission.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP colspan=2>
<P><FONT SIZE=2>We hereby consent to the
 filing of this opinion with the Securities and Exchange Commission as Exhibit
 5.1 to the Registration Statement and to the reference to our firm under the
 caption &#147;Validity of Securities&#148; in the related Prospectus. In giving such
 consent, we do not thereby concede that we are within the category of persons
 whose consent is required under Section 7 of the Act or the Rules and
 Regulations of the Commission thereunder.</FONT></P>
</TD>
</TR>
</TABLE>

<BR>

<TABLE ALIGN=CENTER BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="60%" VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD WIDTH="28%" VALIGN=BOTTOM>
<P ALIGN=CENTER>&nbsp;</P>
</TD>
<TD WIDTH="12%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=2>Very
 truly yours,</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=2>/s/
 Amit, Pollak, Matalon &amp; Co.</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=GRAY ALIGN=CENTER>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=2><B>Amit, Pollak, Matalon &amp; Co.</B></FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
</TABLE>

<P ALIGN=CENTER><FONT SIZE=2>- 3 - </FONT></P>

<HR WIDTH="100%" size="1" noshade style="margin-top: -2px">
<HR WIDTH="100%" size="4" noshade style="margin-top: -10px">

</BODY>

</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>GRAPHIC
<SEQUENCE>6
<FILENAME>img001.jpg
<DESCRIPTION>GRAPHIC
<TEXT>
begin 644 img001.jpg
M_]C_X``02D9)1@`!`@``9`!D``#_[``11'5C:WD``0`$````/```_^X`#D%D
M;V)E`&3``````?_;`(0`!@0$!`4$!@4%!@D&!08)"P@&!@@+#`H*"PH*#!`,
M#`P,#`P0#`X/$`\.#!,3%!03$QP;&QL<'Q\?'Q\?'Q\?'P$'!P<-#`T8$!`8
M&A41%1H?'Q\?'Q\?'Q\?'Q\?'Q\?'Q\?'Q\?'Q\?'Q\?'Q\?'Q\?'Q\?'Q\?
M'Q\?'Q\?'Q\?_\``$0@`'0!X`P$1``(1`0,1`?_$`(@```(#``,`````````
M``````<(!`4&``(#`0`"`P$````````````````"!``!`P40``$#`P,#`04&
M!04!``````(!`P01!08`$@<A,1,405$B,@AA<8%"8A:QLC,D%9&A<J(C11$`
M`@("`@(#`0$!``````````$1`A(#(00Q06$B$U&!,O_:``P#`0`"$0,1`#\`
M:E=0@.>;^1_V1AYR(IBEYG%X+:*T6A?F<I^A-;:->;,MVS%"S+]0G+:?_;KM
M[IXF_9^&GWU*"*[+'%Q.\)><8M5U$MWK8K3Q$E/F(4W=OU5UR[5591TJVE)@
M-^H7EW,L8S&):,<GI$:;B"[+'8!U<,BI\WZ4TWUNNKKD5W[W5P@?0^8>?YL(
MIT.1*DP@54*0U#0P14[HI(-.FMWUM:\F2W79)QGZG.1($]E;R\U=+?Y$&2R3
M0MNH*K1=A#3JGVZK9TZXRB:^U;*&6_-'-690<X<B8U=7(=L;C1S1H1%:FZ&]
M26J+["30:.M5UY"V[W)*X#Y4SW(>18]KOEV<F078[Y$P:"B;@#<B]$3M30]C
M0JUE%]?<W:#6?49RO>L;>M]CQJ44>Y'63/>;1#5MKL`+T6F[O]VL^MJJ_(?8
MVM/@#-KYJY<G7*%";R!XBDOMLBFT/SF@^Q--7Z^M*1>O8LW`[$83".V#A;W!
M$4,U[D2)U7_77,X]'2D]=0AS4(<U"'1QP&P(C5!$44B5?8B)55U/97A"0<NY
MM/Y`Y`-(53ALNI`L["]E^/;OI[W"Z_=KK:=?YUDYNR^=H/?F[`8N%W*PVUA$
M_P#2V`LEQ.[CXDJ.$OXKJ=?;E)-^O$8;Z:[RMQXK@-&57+:Z[$+[A+</^Q:1
M[54KCG7O-!;N>;H5RY7O[E:C&=&(/NHP.W^.G>LOJ);W]C:<<?4%8L)X_:L#
M-ID2KHTKKI&I`+)..DJU)>JTI365^M:UC:F]*L`KQRQ7/,<LCVZ&VBR[C)\K
MJ`E`;!3WF7V"*:9M%*PS"J=K26%\;&]<INPVEWM/W-N""]?Z;3@L?RCH:W^A
M;7V-CQBL3&.>YH/DC4*V'<4<)>PMLM&M?^N@W)VUA:K)7+_EOE#(;1R+;Y5O
M-IO'9L>)-)GP-&LEAY$5SRD0J14'I2O366G2G3Y--FR+?`/,-D6.=S$Q<TVQ
MK(S.=N:H2;4;C,JKW44]PI2FM;KZQ[,J?]2-?C&0Y9E\4;S"%NRV%^JV]70\
M\J0VBT1Y154%L2_*G?7-LDG!T$Y+:QGF+5\G0[P3$FU@TVY`GM-^(U(E)#;,
M=Q)4=J+5-4BV:%MP"3X20J=Z*BZHM,[U34+`U]2/(W[;Q3_"0G-EWO@DW\*_
M$U&HJ.'^/RIICJZW9RQ;L[,5`K&-.Y'`N4>\V.,Z[+A'N8?!A7A$T2G5*$-:
M+KH;.5#$*3,HLL[RC/<C=BR<M%XSC(3<9UZ/X.A=51%VC74TZJU\!;=EGY#/
M](]_%J)DEH>*@,J$X$7V#11/^&D^W7D:ZEN`!9'.=NN372=55<FS'7$7_FXJ
M)I_6\:H4OS<:VS?31QD=JA.3(4@IA,-'(7U!C5Q013Z)]NN;;M6EI#]>O6)-
MA%P[#,#QVYS+):V87ABNNNO)4G2V`J]7"J6LG>U[<FBJJU%,X2@%>N6[(KR;
MJ23FO>VNQ%/^94UTMRC6Q#2IN;`L7B7+ZBLAA2A5QELI<P88EL]2J-*:,JJ?
ME)5ZI[4UBK-:TS14KFT5,+++9R)'+&LT5FUWALR3'+L`(RU'5>GH7A%$HUTH
M*^S18.D67CV"[934GWJ%DUGP-S'LFBQV;BY<(S2.,LLBZW:Q-&E<)UL:JVZX
MM$JM5HN@3RLV@XQ23&RMD>+#MT6+'1!CL-`VRB=M@BB#3\-(OER.IF"Y'N\V
M;DV,X;;Y)1V+X\^Y<Y+!4<]/"%#<9$D^535:*J==:ZZI)LRV7^R1!RMABP<@
MX1&QX/329[[[,^,TJH#L(&ZD3@UZ[2I0N]=#7FLEV<,*B**)]B:S\!IBD\Z1
M\4+D6X+E%POC4Q0'TH,0HCD=(U5\:,D<ILB2M:U%%[Z?T9QP)[<9Y#9P$.(#
MQS#'&C<<B(XYZER4`-OJ_7X_*`$X*+VI0ETMNRGD8U1'!1_4TWBAXI:TO[\R
M.WZS^V.WLM/N*7C6J$+KK`[:?JT?6RG@#L8QR#7A"/A0WR^+89]Z=<6SRTE#
M)AQ&P1O;W%6Y3A*=?E14I7VZU[&7LST8^C#62-Q.EY@*=QORTDM[A<@PT!2\
MB=#49:J@U[JB*NF;?IB8UPS'G#V=MM$VT]U-<DZ:,UR<,8L`OJ2SD-PUB.>I
M.&`./HW3X_&+A-BJT]Y:+7.2@'9&/(!_IW:XQ#D&M@E79ZY^C>\(7&/'9:VU
M'=M)EYU=U.W33G:_3'D5Z^&7!ZYRSB!<Z.K!EWYK+E>9\86V-%=91SQ)V)Q]
MHE3;\U1IH*Y_GSX+>.;_`*:FZAP4N0."^_;QS>J>1WQ5_NJ>UM7$A^6OZ^^A
M7Z1\%O#_`$OK8W9@PN[_`+_D27X:@7J%O3,5F4D;<M-J0G7E4-_]/LONUESE
MP;*(Y)V/!=?VPRMI>O:6OQ)Z`7VH2RO#3X/&3CB%\OR^1-VKMYY`KXX*DDP5
M;)BZ0RN*7;ULC_"$*"MR]7N+U?E1U4:IWW[EV^[0URY_@5HE%M;4QU,CNB7$
MYQ9=Z)S:LP021Z/:M?1(T2M4KWHM:]]4I+?DD\+I8DP9I+*5P*)ZB1O*ZCME
0>7?\>Y*DE/=UU6SR&C__V3\_
`
end
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-23.2
<SEQUENCE>7
<FILENAME>exhibit_23-2.htm
<TEXT>
<HTML>
<HEAD>
     <!-- Created by EDGAR Ease Plus (EDGAR Ease+) -->
     <!-- Project:        F:\EDGAR Filing\BOS better online solutions Ltd\85456\a85456.eep -->
     <!-- Control Number: 85456                                                            -->
     <!-- Rev Number:     1                                                                -->
     <!-- Client Name:    BOS better online solutions Ltd                                  -->
     <!-- Project Name:   F-3                                                              -->
     <!-- Firm Name:      Zadok-Keinan Ltd                                                 -->
     <TITLE>F-3</TITLE>
</HEAD>
<BODY>

<!-- MARKER FORMAT-SHEET="Scotch Rule Top-TNR" FSL="Workstation" -->
<HR ALIGN=LEFT WIDTH=100% SIZE=4 NOSHADE STYLE="margin-top: -5px">
<HR ALIGN=LEFT WIDTH=100% SIZE=1 NOSHADE STYLE="margin-top: -10px">

<!-- MARKER FORMAT-SHEET="Head Major Center Bold 1-TNR" FSL="Workstation" -->
<H1 ALIGN=right><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><U>Exhibit 23.2</U> </FONT> </H1>

<!-- MARKER FORMAT-SHEET="Head Sub 1 Left-TNR" FSL="Workstation" -->
<P ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>CONSENT
OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM</FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Default" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>We consent to the reference to our
firm under the caption &#147;Experts&#148; in this Registration Statement on Form F-3
dated June 30, 2008 and related prospectus of B.O.S Better Online Solutions Ltd.
(&#147;BOS&#148;) and to the incorporation by reference therein of our report dated March
31, 2008, with respect to the consolidated financial statements of BOS included in its
Annual Report on Form 20-F, for the year ended December 31, 2007, filed with the
Securities and Exchange Commission on June 30, 2008. </FONT></P>


<!-- MARKER FORMAT-SHEET="Signature (Single)" FSL="Workstation" -->
<TABLE WIDTH=100% CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=40%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><BR>Tel Aviv Israel <BR>June 29, 2008</FONT></TD>
<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"><U>/s/ KOST, FORER GABBAY &amp; KASIERER</U><BR>
KOST, FORER GABBAY &amp; KASIERER<BR>A Member of Ernst &amp; Young Global </FONT></TD>
</TR>
</TABLE>
<BR>



<p align=center>
<font size=2></font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px"><HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">

</body>
</html>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-23.3
<SEQUENCE>8
<FILENAME>exhibit_23-3.htm
<TEXT>
<HTML>
<HEAD>
     <!-- Created by EDGAR Ease Plus (EDGAR Ease+) -->
     <!-- Project:        F:\EDGAR Filing\BOS better online solutions Ltd\85456\a85456.eep -->
     <!-- Control Number: 85456                                                            -->
     <!-- Rev Number:     1                                                                -->
     <!-- Client Name:    BOS better online solutions Ltd                                  -->
     <!-- Project Name:   F-3                                                              -->
     <!-- Firm Name:      Zadok-Keinan Ltd                                                 -->
     <TITLE>F-3</TITLE>
</HEAD>
<BODY>

<!-- MARKER FORMAT-SHEET="Scotch Rule Top-TNR" FSL="Workstation" -->
<HR ALIGN=LEFT WIDTH=100% SIZE=4 NOSHADE STYLE="margin-top: -5px">
<HR ALIGN=LEFT WIDTH=100% SIZE=1 NOSHADE STYLE="margin-top: -10px">

<!-- MARKER FORMAT-SHEET="Head Right-TNR" FSL="Workstation" -->
<P ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B><U>Exhibit 23.3</U></B> </FONT> </P>

<!-- MARKER FORMAT-SHEET="Head Major Center Bold-TNR" FSL="Workstation" -->
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>CONSENT OF INDEPENDENT
REGISTERED PUBLIC ACCOUNTING FIRM </FONT></H1>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Default" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>We consent to the references to our
firm under the caption &#147;Experts&#148; in this Registration Statement on Form F-3 and
related prospectus of B.O.S Better Online Solutions Ltd. (&#147;BOS&#148;) and to the
incorporation by reference therein of our report dated March 31, 2008, with respect to the
financial statements of Summit Radio Corp. included in its report on Form 6-K, filed with
the Securities and Exchange Commission on June 30, 2008. </FONT></P>

<!-- MARKER FORMAT-SHEET="Signature (Single)" FSL="Workstation" -->
<TABLE WIDTH=100% CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=40%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<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"><U>/s/ ARIK ESHEL, CPA &amp; ASSOC., PC</U><BR>
ARIK ESHEL, CPA &amp; ASSOC., PC </FONT></TD>
</TR>
</TABLE>
<BR>




<!-- MARKER FORMAT-SHEET="Head Left-TNR" FSL="Workstation" -->
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>June 30, 2008 </FONT></P>

<p align=center>
<font size=2></font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px"><HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<page>

<!-- MARKER FORMAT-SHEET="Head Major Center Bold-TNR" FSL="Workstation" -->
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>CONSENT OF INDEPENDENT
REGISTERED PUBLIC ACCOUNTING FIRM </FONT></H1>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Default" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>We consent to the references to our
firm under the caption &#147;Experts&#148; in this Registration Statement on Form F-3 and
related prospectus of B.O.S Better Online Solutions Ltd. (&#147;BOS&#148;) and to the
incorporation by reference therein of our report dated March 31, 2008, with respect to the
consolidated financial statements of Lynk USA Inc. included in BOS&#146;s Annual Report on
Form 20-F, for the year ended December 31, 2007, filed with the Securities and Exchange
Commission on June 30, 2008. </FONT></P>

<!-- MARKER FORMAT-SHEET="Signature (Single)" FSL="Workstation" -->
<TABLE WIDTH=100% CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=40%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<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"><U>/s/ ARIK ESHEL, CPA &amp; ASSOC., PC
</U><BR>ARIK ESHEL, CPA &amp; ASSOC., PC</FONT></TD>
</TR>
</TABLE>
<BR>



<!-- MARKER FORMAT-SHEET="Head Left-TNR" FSL="Default" -->
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>June 26, 2008 </FONT></P>


<p align=center>
<font size=2></font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px"><HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">

</body>
</html>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-23.4
<SEQUENCE>9
<FILENAME>exhibit_23-4.htm
<TEXT>
<HTML>
<HEAD>
     <!-- Created by EDGAR Ease Plus (EDGAR Ease+) -->
     <!-- Project:        F:\EDGAR Filing\BOS better online solutions Ltd\85456\a85456.eep -->
     <!-- Control Number: 85456                                                            -->
     <!-- Rev Number:     1                                                                -->
     <!-- Client Name:    BOS better online solutions Ltd                                  -->
     <!-- Project Name:   F-3                                                              -->
     <!-- Firm Name:      Zadok-Keinan Ltd                                                 -->
     <TITLE>F-3</TITLE>
</HEAD>
<BODY>

<!-- MARKER FORMAT-SHEET="Scotch Rule Top-TNR" FSL="Workstation" -->
<HR ALIGN=LEFT WIDTH=100% SIZE=4 NOSHADE STYLE="margin-top: -5px">
<HR ALIGN=LEFT WIDTH=100% SIZE=1 NOSHADE STYLE="margin-top: -10px">

<!-- MARKER FORMAT-SHEET="Head Right-TNR" FSL="Workstation" -->
<P ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B><U>Exhibit 23.4</U></B> </FONT> </P>

<!-- MARKER FORMAT-SHEET="Head Major Center Bold-TNR" FSL="Workstation" -->
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>CONSENT OF INDEPENDENT
REGISTERED PUBLIC ACCOUNTING FIRM </FONT></H1>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Default" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>We consent to the reference to our
firm under the caption &#147;Experts&#148; in this Registration Statement on Form F-3 and
related prospectus of B.O.S Better Online Solutions Ltd. (&#147;BOS&#148;) and to the
incorporation by reference therein of our report dated April 2, 2008, with respect to the
financial statements of Dimex Systems (1988) Ltd. included in its report on Form 6-K,
filed with the Securities and Exchange Commission on June 30, 2008. </FONT></P>

<!-- MARKER FORMAT-SHEET="Signature (Single)" FSL="Workstation" -->
<TABLE WIDTH=100% CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=40%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<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"><U>/s/ CHAIKIN, COHEN, RUBIN &amp; Co.</U><BR>
CHAIKIN, COHEN, RUBIN &amp; Co. </FONT></TD>
</TR>
</TABLE>
<BR>





<!-- MARKER FORMAT-SHEET="Head Left-TNR" FSL="Default" -->
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>June 26, 2008 </FONT></P>


<p align=center>
<font size=2></font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px"><HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">

</body>
</html>
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
-----END PRIVACY-ENHANCED MESSAGE-----
