ROSH HA'AYIN, Israel, August 14 /PRNewswire-FirstCall/ -- BVR Systems (1998) Ltd. (OTCBB: BVRSF.OB - News), a diversified world leader in advanced military training and simulation systems, today announced a net loss of $1.2 million or $0.01 per share for the second quarter of 2006, compared with a net profit of $65 thousand, or $0.00 per share for the second quarter of 2005. Net loss for the first six months of 2006 was $1.5 million or $0.01 per share, compared with a net loss of $0.15 million or $0.00 per share for the first six months of 2005.

Revenues for the second quarter of 2006 were $1.5 million, compared with revenues of $3.9 million for the second quarter of 2005. For the first six months of 2006, BVR's revenues were $3.8 million compared with revenues in the first six months of 2005 of $8.8 million.

Gross loss for the second quarter of 2006 was $70 thousand, compared with a gross profit of $1.1 million for the second quarter of the previous year. For the first six months of 2006, gross profit was $0.6 million compared with a gross profit of $1.8 million for the first six months of 2005.

Operating loss for the second quarter of 2006 was $1.1 million, compared with an operating profit of $52 thousand for the same period last year. Operating loss for the first six months of 2006 was $1.4 million compared with an operating loss of $0.2 million for the first six months of 2005.

Further to its announcement on February 22, 2006, BVR has decided to halt the application process for the approval of the Committee on Foreign Investment in the United States required for the acquisition of 100% of the shares of Blue Ridge Simulation Inc. and the completion of the transaction.

BVR Systems (1998) Ltd., (OTCBB: BVRSF.OB - News) 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 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 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: +972-3-900-8000