October 19, 2006

TERADYON, Israel–(BUSINESS WIRE)–B.O.S. Better Online Solutions Ltd. (the “Company” or “BOS”) (NASDAQ:BOSC – News; TASE:BOSC) announced that at the shareholders meeting held today, the shareholders expressed an interest in participating in a rights offering. Therefore, at the meeting, the shareholders approved the resolutions recommended by the Company’s Board and appearing in the Company’s proxy statement, subject to the Company’s first pursuing the avenue of equity raising by way of a rights offering. In the event such offering would not yield an investment of at least $3 million dollars, the Company would be authorized to raise the equity either by way of a public offering in Israel or by way of a private placement, as detailed in the Company’s proxy statement. The full text of the adopted resolutions appears in the Company’s Current Report on Form 6-K filed with the Securities and Exchange Commission.

Edouard Cukierman, Chairman of the Board of Directors said: “I am pleased with the vote of confidence by the Company’s shareholders present at the meeting today and their willingness to participate in a rights offering.”

Adiv Baruch, President and CEO of BOS added: “this is definitely a strong show of support by shareholders who participated in the meeting, in management’s strategy. The financing will strengthen the Company’s capital structure and facilitate potential future mergers and acquisitions.”

This announcement does not constitute an offer of any securities for sale. The rights offering is subject to the filing of a registration statement covering the rights and shares to be issued and to other customary regulatory filings and approvals. Any rights offering conducted by the Company will be made only by means of a prospectus.

About BOS

B.O.S. Better Online Solutions Ltd. (the “Company” or “BOS”) (NASDAQ:BOSC; TASE:BOSC) was established in 1990. Through its wholly owned subsidiaries, BOS activities are focused on two segments:
Electronic Components segment, based on Odem Electronic Technologies 1992 Ltd., providing solutions in RFID, semiconductors, electronic components, CCD, imaging, networking, telecom and automation fields.
Connectivity segment, with products marketed under the BOSaNOVA brand name. These products deliver instant and transparent connectivity from IBM iSeries computers to personal computers, thin clients and browsers.
BOS, www.boscorporate.com is traded on NASDAQ and on the Tel-Aviv stock exchange.

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. These risk factors and uncertainties include, amongst others, the dependency of sales being generated from one or few major customers, the uncertainty of our being able to maintain current gross profit margins, inability to keep up or ahead of technology and to succeed in a highly competitive industry, inability to maintain marketing and distribution arrangements and to expand our overseas markets, uncertainty with respect to the prospects of legal claims against BOS; and additional 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.

Contact:
Gelbart-Kahana Public Relations & Investors Relations
Mr. Emanuel Kahana,  +972-3-6074717 
info@gk-biz.com

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Headquarters :

20 Freiman St.(entrance from Menahem Cohen Street)
Drive-In Center Building, Industrial Zone
P.O. Box 198 Rishon LeZion 75101 Israel

Directions From Route 1 - exit at Shapirim Junction, towards Rishon Lezion. Stay on Rte 412 as it crosses over Rte. 44 and becomes Derekh Hamaccabim. Turn left onto Freiman Street. BOS is located in the Drive-In Center, on the corner of Freiman and Menahem Cohen Street. Turn right onto Menachem Cohen, and enter the parking lot via the driveway. Parking is on the roof of the building, and the entrance to BOS is from Entrance 8, one flight down.