Rosh Ha'ayin, Israel - August 30, 2007 - BVR Systems (1998) Ltd. (OTCBB: BVRSF.OB), a diversified world leader in advanced military training and simulation systems, today announced a net loss of $1.1 million or $0.01 per share for the second quarter of 2007, compared with a net loss of $1.2 million, or $0.01 per share for the second quarter of 2006. Net loss for the first six months of 2007 was $1.1 million or $0.01 per share, compared with a net loss of $1.5 million or $0.01 per share for the first six months of 2006.

Revenues for the second quarter of 2007 were $2.9 million, compared with revenues of $1.5 million for the second quarter of 2006, which amounts to a 93% growth.  For the first six months of 2007, BVR's revenues were $7.0 million compared with revenues in the first six months of 2006 of $3.8 million, which amounts to an 84% growth.

Gross profit for the second quarter of 2007 was $0.3 million, compared with a gross loss of $70 thousand for the second quarter of the previous year. For the first six months of 2007, gross profit was $1.8 million compared with a gross profit of $0.6 million for the first six months of 2006, which amounts to a 200% growth.

Operating loss for the second quarter of 2007 was $1.1 million same as for the same period last year. Operating loss for the first six months of 2007 was $1.0 million compared with an operating loss of $1.4 million for the first six months of 2006.

BVR's order backlog at the end of the second quarter of 2007 was approximately $18.9 million compared to an order backlog of $14.4 million for the same period last year, which amounts to a 31% growth.

On August 28, 2007 the Company announced the award of an Air Defence Simulator contract in an amount of US $ 10.1 million.