Rosh Ha'ayin, Israel - March 21, 2006 - BVR Systems (1998) Ltd. (OTCBB: BVRSF.OB), a diversified world leader in advanced military training and simulation systems, today announced the investment of $3.6 million in the share capital of the Company in consideration for the issuance of 20,000,000 Ordinary Shares nominal value NIS 1.00 each of the Company, representing approximately 17% of the issued share capital of the Company, at a price per share of $0.18.  The purchaser is an Israeli limited partnership led by Mr. Nir Dor.

In addition, the Company has issued to the purchaser three warrants each for the purchase of 6,000,000 Ordinary Shares nominal value NIS 1.00 each of the Company, with exercise prices of $0.36, $0.54 and $1.00, exercisable for a period of three years, with a mandatory exercise mechanism under certain conditions.

"We are excited with this major investment, which expresses confidence in BVR's vision, in the implementation of our strategy and in our ability to create value for our investors".  "We are fully committed to achieve these goals" said BVR's Chairman Aviv Tzidon.

For more information visit the Company's web site at http://www.bvrsystems.com/

This press release contains forward-looking statements within the meaning of the "safe harbor" provision of the Private Securities Litigation Reform Act of 1995. These statements are based on the current expectations or beliefs of BVR Systems' management and are subject to a number of factors and uncertainties that could cause actual results or performance of the Company to differ materially from those contemplated in such forward-looking statements. These factors include but are not limited to the fact that the Company has experienced  reduction in backlog;  the Company has reported operating and/or net losses in the past and may report operating and/or net loses in the future, conditions in Israel affect the Company's operations and may limit its ability to produce and sell its products, changes in technology and market requirements; decline in demand for the company's products; inability to timely develop and introduce new technologies, products and applications; loss of market share and pressure on pricing resulting from competition. For other factors that could cause BVR Systems' results to vary from expectations, please see the Company's reports filed from time to time with the SEC.

Contacts:

Ilan Gillies, CEO

BVR Systems (1998) Ltd.

Tel: 011 972 3 900 8000