ROSH HA’AYIN, Israel, April 20 /PRNewswire-FirstCall/ — BVR Systems (1998) Ltd. (OTCBB: BVRSF), a diversified world leader in advanced military training and simulation systems, today announced a net profit of $0.5 million or $0.00 per share for the fourth quarter of 2008, compared with a net loss of $2 million, or $0.02 per share for the fourth quarter of 2007.

Net profit for fiscal year 2008 was $1.6 million or $0.01 per share, compared with a net loss of $4million, or $0.03 per share for fiscal year 2007.

Revenues for the fourth quarter of 2008 were $8.3million, compared with revenues of $3.4 million for the fourth quarter of 2007. In fiscal year 2008, BVR’s revenues were $31.6 million, compared with total revenues of $13.1 million in fiscal year 2007, an increase of 141%.

Gross profit for the fourth quarter of 2008 was $2.0 million, compared with a gross loss of $0.6 million for the fourth quarter of the previous year. The gross loss for the fourth quarter of 2007 includes an inventory write-off of $0.7 million. For Fiscal year 2008, gross profit was $8.3 million compared with gross profit of $1.7 million for fiscal year 2007.

Operating profit for the fourth quarter of 2008 was $0.8 million, compared with an operating loss of $2 million for the same period last year. Operating profit for fiscal year 2008 was $2.2 million compared with an operating loss of $4 million for fiscal year 2007.

BVR’s order backlog at the end of fiscal year 2008 was approximately $52.8 million.

The company concluded 2008 with new booked orders in the total value of approximately US $33.3 million. In January-February 2009 the company announced the award of three new orders in the total value of approximately US $6.9 million.

Mr. Ilan Gillies, BVR Systems CEO, commented: “We are very pleased with the results reported today. They prove that the strategy, the restructuring of the organization and the unification of the technology are solid. Focus on delivery, and the fact that we have our customer’s confidence will play a key role in our attempts to continue and lead while we improve our financial performance. We have invested a lot in creating a unique and advanced offering that is starting to bear fruits.”

Mr. Aviv Tzidon, BVR Systems Chairman of the board, added: “I have great confidence in the company’s management and employees. Future challenges call for more training to be done in simulators and at the same time get more value out of each live training session. BVR is an expert in integrating live and virtual training across multiple services. Hence, we have the best solutions to these challenges.”

IFRS Reporting:

This condensed unaudited financial information has been prepared according to International Financial Reporting Standards (“IFRS”). The preparation of the financial information in accordance with IFRS resulted in changes to the accounting policies as compared with the previous financial statements prepared in accordance with generally accepted accounting principles in Israel (“Israeli GAAP”). The new accounting policies have been applied consistently to all periods presented in these condensed consolidated interim financial statements. They also have been applied in preparing an opening IFRS balance sheet at January 1, 2007 for the purposes of the transition to IFRSs, as required by IFRS 1. The impact of the transition from previous GAAP to IFRSs resulted mainly with an increase to operating expenses of $200 thousands for the year ended December 31, 2007. The increase to the operating expenses was due to increased stock based compensation expenses and the increase in employees benefits cost for the reported periods. In addition, various balance sheet reclassifications were done in order to conform to the current period presentation.

BVR Systems (1998) Ltd., (OTCBB: BVRSF) is a diversified world leader in advanced defense training and simulation systems.