Rosh Ha'ayin, Israel -  February 23, 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 $128 thousands or $0.00 per share for the fourth quarter of 2006, compared with a net loss of $315 thousands, or $0.00 per share for the fourth quarter of 2005. Net loss for fiscal 2006 was $2.2 million or $0.02 per share, compared with a net earning of $114 thousands or $0.00 per share for fiscal 2005.

Revenues for the fourth quarter of 2006 were $3.7 million, compared with revenues of $4.5 million for the fourth quarter of 2005.  In fiscal 2006, BVR's revenues were $10.1 million compared with revenues in fiscal 2005 of $19.2 million.

Gross profits for the fourth quarter of 2006 were $1.2 million, compared with gross profits of $1.0 million for the fourth quarter of the previous year. For fiscal 2006, gross profits were $2.2 million compared with gross profits of $4.4 million for fiscal 2005.

Operating loss for the fourth quarter of 2006 was $35 thousands, compared with operating loss of $0.2 million for the same period last year. Operating loss for fiscal 2006 was $2.0 million compared with operating earnings of $0.3 million for fiscal 2005.

BVR's order backlog at the end of fiscal 2006 was approximately $22 million.