May 9, 2007


RISHON LEZION, ISRAEL – June 26, 2007 – B.O.S. Better Online Solutions Ltd. (“BOS” or the “Company”) (NASDAQ: BOSC,
TASE: BOSC), announced today that it has entered into a definitive private placement agreement with a European private investor for
the issuance of 226,415 Ordinary Shares (2.3% of the current outstanding shares of the Company) at a price per share of $2.65.

When issued, the Ordinary Shares will not be registered under the Securities Act of 1933, and may not be subsequently offered or sold
by the investor without registration or an applicable exemption from the registration requirements. BOS has agreed to grant the
investor certain incidental registration rights, to cover the resale of the Ordinary Shares from this transaction, subject to certain terms
and conditions.

Shmuel Koren, BOS’s President & CEO said: “This private placement is in furtherance of our strategy to grow through mergers and
acquisitions. The investment is a clear vote of confidence in BOS and its direction.”

About BOS

B.O.S Better Online Solutions Ltd. (“BOS”) was established in 1990. BOS operates through two divisions based in Israel:
(1) The Software Division – provides specialized enterprise software, including IBM System i middleware, data and license
management, mobile connectivity and RFID solutions;
(2) The Supply Chain Division, which resells electronic systems and components for security, aerospace, networking and RFID.
BOS is traded on NASDAQ and on the Tel-Aviv stock exchange. Our website is

For further information please contact:
B.O.S Better Online Solutions Ltd.
Mr. Zvi Rabin +972 505600140
Mr. Eyal Cohen, CFO, +972-3-954-1000

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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.