Rosh Ha'ayin, Israel - August 18, 2008 - BVR Systems (1998) Ltd. (OTCBB: BVRSF.OB), a diversified world leader in advanced military training and simulation systems, today announced a net profit of  $0.4 million or $0.00 per share for the second quarter of 2008, compared with a net loss of $1.1 million, or $0.01 per share for the second quarter of 2007.

For the first half of 2008, the net profit sums up to $0.9 million or $0.01 per share, compared with a net loss of $1.2 million, or $0.01 per share for the first half of 2007.

Revenues for the second quarter of 2008 were $6.6 million, compared with revenues of $2.9 million for the second quarter of 2007.  The total revenues for the first half of 2008 are $14.2, compared with total revenues of $7.0 million for the first half of 2007.

Gross profit for the second quarter of 2008 was $2.0 million, compared with a gross profit of $0.3 million for the second quarter of the previous year. 

Operating profit for the second quarter of 2008 was $0.3 million, compared with an operating loss of $1.1 million for the same period last year.

BVR's order backlog at the end of the second quarter of 2008 was approximately $64.6 million.

Mr. Ilan Gillies, BVR Systems' CEO, commented: "I am pleased with the fact that we are able to present a second consecutive profitable quarter. The strong growth of revenue and growth of backlog at the same time reflect strength in performance across the board. We start to see the fruits of the investment BVR made during the last few years in its product lines, new marketing strategy, excellence in the delivery of programs and the broadening of its installed customer base ".

Mr. Aviv Tzidon, BVR System's Chairman of the board said that: "the strategy we set forth proves itself. The company is focused on its products, goals and target market niches where it has leverage and will continue to do so". "During the first half of 2008, Mr. Tzidon added, the company achieved more revenues than the entire 2007 while continuing the growth of new orders and backlog".

  
IFRS Reporting:
This condensed unaudited financial information has been prepared according to International Financial Reporting Standards ("IFRS?).  The preparation of the financial information in accordance with IFRS resulted in changes to the accounting policies as compared with the previous financial statements prepared in accordance with generally accepted accounting principles in Israel ("Israeli GAAP").  The new accounting policies have been applied consistently to all periods presented in these condensed consolidated interim financial statements. They also have been applied in preparing an opening IFRS balance sheet at January 1, 2007 for the purposes of the transition to IFRSs, as required by IFRS 1. The impact of the transition from previous GAAP to IFRSs resulted mainly with an increase to operating expenses of $ 144 thousands, and $ 232 thousands for the six months ended June 30, 2007, and for the year ended December 31, 2007, respectively. The increase to the operating expenses was due to increased stock based compensation expenses and the increase in employees benefits cost for the reported periods. In addition, various balance sheet reclassifications were done in order to conform to the current period presentation.

BVR Systems (1998) Ltd., (OTCBB: BVRSF.OB) is a diversified world leader in advanced defense training and simulation systems. For more information, visit the Company's web site at http://www.bvrsystems.com/.

Safe Harbor

This press release contains forward-looking statements wihthin 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  reductions 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
 
B.V.R. Systems (1998) Ltd.