Business News

BOS Announces the Closing of the Dimex Transaction

Thursday 13. March 2008 - B.O.S. Better Online Solutions Ltd. ("BOS" or the "Company") (NASDAQ: BOSC; TASE: BOSC), a leading provider of comprehensive Mobile and RFID solutions for the enterprise, announced today the closing of the transaction for the acquisition of assets and activities of Dimex Systems Ltd. ("Dimex").

Dimex, a profitable Israeli private company incorporated in 1988, is a leading integrator of AIDC (Automatic Identification and Data Collection) solutions based on RFID and Barcode technology. Dimex, which employs approximately 55 persons, has ended the year 2006 with revenues of approximately NIS 51 million ($11.5 million) and with operating income before tax of approximately NIS 5 million ($1.1 million) (the revenues in NIS are based on audited Israeli GAAP).

BOS is acquiring the business operation of Dimex in consideration for approximately NIS 17.6 million ($5.00 million) and its inventory, accounts receivable and fixed assets in consideration for approximately NIS 27 million ($7.7 million).

The consideration is comprised of cash, payable over a 24-month period and 500,224 BOS ordinary shares (equal to approximately 4.4% of the outstanding shares of BOS.) The purchase price is financed in part by a short and long term credit facility of approximately NIS 17.3 million extended by Bank Leumi and drawn on in accordance with the payment schedule and working capital needs. In order to secure the repayment of the bank loans, BOS has granted the bank security interests in its assets and in assets of its wholly owned Israeli subsidiaries, Dimex Solutions Ltd. and Odem Electronic Technologies 1992 Ltd. and also undertook to comply with certain covenants.

Additional details with respect to the transaction appear in
the Company’s press release of January 30, 2008.

Shmuel Koren, President and CEO of BOS, commented: “We are very pleased with the closing of the Dimex transaction. We have already begun to leverage the substantial synergy between BOS and Dimex and offer integrated solutions, that are very well received by the market. We look forward with confidence that BOS is on its way to become a significant player in the Mobile & RFID market.”

Edouard Cukierman, Chairman of the BOS Board, said: “The closing of the Dimex transaction marks an important milestone in the implementation of our strategy. We are now focusing on integrating the BOS group and enhancing our profile with the international investment community.”