BVR Systems (1998) Ltd. Reports Third Quarter Results for 2007

Revenues for the third quarter of 2007 were $2.7 million, compared withrevenues of $2.6 million for the third quarter of 2006. For the first ninemonths of 2007, BVR's revenues were $9.7 million compared with revenues inthe first nine months of 2006 of $6.4 million.

Gross profit for the third quarter of 2007 was $0.5 million, comparedwith a gross profit of $0.4 million for the third quarter of the previousyear. For the first nine months of 2007, gross profit was $2.2 millioncompared with a gross profit of $1.1 million for the first nine months of2006.

Operating loss for the third quarter of 2007 was $0.7 million, comparedwith an operating loss of $0.6 million for the same period last year.Operating loss for the first nine months of 2007 was $1.8 million comparedwith an operating loss of $1.9 million for the first nine months of 2006.

BVR's order backlog at the end of the third quarter of 2007 wasapproximately $34.0 million.

On October 31, 2007 the Company announced the award of a major EHUD(TM)Air Combat Maneuvering Instrumentation (ACMI) system contract in the value ofapproximately US $19.5 million.

BVR Systems (1998) Ltd., (OTC: - ) is a diversified world leader inadvanced defense training and simulation systems. For more information, visitthe Company's web site at .

Safe Harbor

This press release contains forward-looking statements within the meaningof the "safe harbor" provision of the Private Securities Litigation ReformAct of 1995. These statements are based on the current expectations orbeliefs of BVR Systems' management and are subject to a number of factors anduncertainties that could cause actual results or performance of the Companyto differ materially from those contemplated in such forward-lookingstatements. These factors include but are not limited to the fact that theCompany has experienced reductions in backlog; the Company has reportedoperating and/or net losses in the past and may report operating and/or netloses in the future, conditions in Israel affect the Company's operations andmay limit its ability to produce and sell its products, changes in technologyand market requirements; decline in demand for the Company's products;inability to timely develop and introduce new technologies, products andapplications; loss of market share and pressure on pricing resulting fromcompetition. For other factors that could cause BVR Systems' results to varyfrom expectations, please see the Company's reports filed from time to timewith the SEC.

    Consolidated Balance Sheet                                                 September 30     December                                                                        31                                                2007      2006        2006                                                 US$       US$         US$                                           thousands thousands   thousands                                           Unaudited Unaudited   Audited    Assets    Current assets    Cash and cash equivalents                  3,483     2,078     3,421    Restricted bank deposits                     630       949       967    Trade receivables                          2,197     2,870     4,383    Other receivables and prepaid expenses       371       599       262    Inventories                                2,021     2,021     2,021    Total current assets                       8,702     8,517    11,054    Other non-current assets                   2,045     1,055     1,155    Fixed assets    Cost                                      10,712    10,259    10,379    Less - accumulated depreciation            9,809     9,422     9,514    Fixed assets, net                            903       837       865    Other assets, net                            146       243       219    Total assets                              11,796    10,652    13,293    Consolidated Balance Sheet                                               September 30        December                                                                         31                                              2007      2006           2006                                               US$       US$            US$                                         thousands thousands       thousands                                         Unaudited Unaudited       Audited    Liabilities and Shareholders'    Equity    Current liabilities    Current maturities of long-term              -       516           516    bank loans    Short term loans                           620       120           120    Trade payables                           1,412     1,447         1,487    Excess of advances from customers    over amounts    recognized as revenue                    3,743       541         2,952    Other payables and accrued expenses      2,280     2,087         2,492    Total current liabilities                8,055     4,711         7,567    Long-term liabilities    Long-term payables                           -       278           154    Liability for employee severance           163       148           166    benefits, net    Total long-term liabilities                163       426           320    Shareholders' equity    Share capital:    Ordinary shares NIS 1.00 par value    400,000,000 shares    authorized as of September 30, 2007    and December 31, 2006    and 200,000,000 shares authorized    as of September 30, 2006;    116,863,757 shares issued as of    September 30, 2007,    December 31, 2006 and September 30,    2006; and    116,863,757 shares outstanding as    of September 30, 2007    and December 31, 2006, and    116,813,757 shares outstanding    as of September 30, 2006                25,861    25,849        25,861    Additional paid-in capital              17,005    16,985        16,992    Accumulated deficit                    (39,288)  (37,319)      (37,447)                                             3,578     5,515         5,406    Total liabilities and    shareholders' equity                    11,796    10,652        13,293    Consolidated Statements of Operations                         Nine months ended    Three months ended      Year                           September 30          September 30        ended                              2007      2006      2007      2006  December                                                                  31, 2006                               US$       US$       US$       US$       US$                         thousands thousands thousands thousands thousands                         Unaudited Unaudited Unaudited Unaudited   Audited    Revenues:    Sales                     9,203    6,148     2,600    2,545     9,827    Royalties and               528      212       105       19       276    commissions    Total revenues            9,731    6,360     2,705    2,564    10,103    Cost of revenues          7,486    5,288     2,211    2,126     7,866    Gross profit              2,245    1,072       494      438     2,237    Operating expenses:    Research and                719      457       194      185       615    development    Selling and marketing     1,630    1,019       520      317     1,430    General and               1,692    1,524       527      514     2,155    administrative    Operating loss           (1,796)  (1,928)     (747)    (578)   (1,963)    Financial expenses,         (45)     (92)      (31)     (27)     (185)    net    Losses before income     (1,841)  (2,020)     (778)    (605)   (2,148)    taxes    Tax expenses                  -      (75)        -        -       (75)    Net loss for the         (1,841)  (2,095)     (778)    (605)   (2,223)    period    loss per share:    Basic and diluted loss    per share (in US$)        (0.02)   (0.02)    (0.01)   (0.01)    (0.02)    Weighted average    number of    ordinary shares (in    thousands)    used in calculation of    the basic    and diluted loss per    116,864  110,849   116,864  116,781   112,361    share    Contacts:    Ilan Gillies, CEO    BVR Systems (1998) Ltd.    Tel: +972-3-900-8000