June 26, 2004

June 26, 2004

B.O.S. Announces Surf Communication Solutions Signs Agreement with Texas Instruments to Advance VoIP Solutions in Remote Access Server, IWF and Universal Port Applications

Teradyon, Israel (July 26,2004) B.O.S. Better On-Line Solutions Ltd. ("BOS" or the "Company") (NASDAQ:BOSC, TASE:BOS) affiliate Surf Communication Solutions (Surf) yesterday announced - Surf Communication Solutions, Ltd., the leading provider of advanced MoP (Media over Packet) conversion solutions, has signed an agreement with Texas Instruments to market Voice over Internet Protocol (VoIP) and MoP solutions for applications such as Remote Access Server (RAS), InterWorking Function (IWF) and Universal Port. As part of the agreement, Surf will utilize TI's VoIP software components and advanced DSP generation, the TMS320C64x ™, in conjunction with Surf's MoP solutions, to deliver a comprehensive and competitive offering for these markets.

TI, which holds roughly 80 percent of the total VoIP integrated circuit (IC) shipment volume for the IP phone, customer premises equipment (CPE) gateway and infrastructure gateway market segments, will promote Surf's C64x-based VoIP solutions to RAS, IWF and Universal Port customers.
Telecommunications equipment vendors can benefit from the combined capabilities of TI's DSPs and VoIP software components and Surf's MoP (Voice, Fax, Modem and Video over Packet) conversion technology, to rapidly develop cost-effective IP-based networking equipment. Surf's products are designed to help OEMs address the emerging market demands for network convergence, media conversion and support for Internet Protocol (IP).

"TI is, by far, the leader in DSP and more specifically, in VoIP. We are exceedingly pleased to be recognized by them as the market leader in providing RAS, IWF and Universal Port solutions that are based on their C64x DSP generation," said Eyal Zagagi, president and CEO of Surf Communication Solutions." TI's VoIP software components, coupled with their DSP processors, offer us the cutting-edge in voice technology, combined with increased performance, lower cost-per-port and chip-count.
As a result, we are now uniquely positioned to offer advanced MoP solutions that are distinctive in their capabilities and value proposition, and ultimately, speed our customers' time to market."

"We're very impressed with Surf's capabilities and success in MoP conversion solutions," said Bill Simmelink, general manager, TI's VoIP business." We view Surf as a valuable third party and are pleased to be working closely with them to extend our VoIP offerings to customers who are eager to benefit from the latest in RAS, IWF and Universal Port technologies."

About Surf Communication Solutions

Surf is the leading provider of MoP (Media over Packet)-enabling technologies and solutions that enable true convergence of all media types (Voice, Fax, Modem and Video) over IP, Wireline and Wireless networks.
Siemens, Intel, Ericsson and Polycom are among Surf's customers. Surf's solutions are used in a variety of products, including Wireline and Wireless Media Gateways and Messaging and RAS systems. Surf Communication Solutions is a privately held company, headquartered in Israel with offices in the U.S. and representatives in Europe and China. For more information about Surf Communication Solutions, please visit www.surf-com.com
About Texas Instruments' Third Party Program

Surf is a member of Texas Instruments' Third Party Program. The Third Party Program offers the most extensive collection of DSP development support in the industry. More than 650 independent companies and consultants provide products including development boards, operating systems, software algorithms, function libraries and systems consulting services around the world. For more information on the TI Third Party Program, please visit www.ti.com/3p

About B.O.S.

Through its wholly owned subsidiary, BOScom, the Company develops, produces and markets multi-functional, cross-enterprise communication and networking products. Marketed under the BOS?NOVA brand, these products are renowned for their simplicity of use, quality, and reliability.
The IP Telephony line offers innovative convergence migration solutions that leverage a corporation's existing equipment infrastructure.
The legacy line provides solutions for IBM midrange-to-PC and LAN connectivity and GUI emulation, and printing solutions that are operating system-independent.
B.O.S. (www.boscorporate.com) was established in 1990 and became a public company traded on the Nasdaq National Market in 1996 (Nasdaq:BOSC), and on the Tel Aviv Stock Market in 2002 (TASE:BOS).
For further information, please contact:
Mr. Nehemia Kaufman
Tel. +972-4- 9907555
e-Mail: IR@boscom.com

The forward-looking statements contained herein reflect management's current views with respect to future events and financial performance. These forward-looking statements are subject to certain risks and uncertainties that could cause the actual results to differ materially from those in the forward-looking statements, all of which are difficult to predict and many of which are beyond the control of BOS, including, but not limited to, those risks and uncertainties detailed in BOS' periodic reports and registration statements filed with the U.S. Securities Exchange Commission. BOS undertakes no obligation to publicly update or revise any such forward-looking statements to reflect any change in its expectations or in events, conditions or circumstances on which any such statements may be based, or that may affect the likelihood that actual results will differ from those set forth in the forward-looking statements.

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