ROSH HA'AYIN, Israel, November 18 /PRNewswire-FirstCall/ -- BVR Systems (1998) Ltd. (OTCBB: BVRSF.OB), a diversified world leader in advanced military training and simulation systems, today announced a net loss of $3.3 million or $0.03 per share for the third quarter of 2009, compared with a net profit of $0.1 million, or $0.00 per share for the third quarter of 2008.

For the nine months ended September 30, 2009, the net profit totaled $0.2 million or $0.00 per share, compared with a net profit of $1.1 million, or $0.01 per share for the nine months ended September 30, 2008.

Revenues for the third quarter of 2009 were $10.9 million, compared with revenues of $9.1 million for the third quarter of 2008. The total revenues for the nine months ended September 30, 2009 were $34.6 million, compared with total revenues of $23.3 million for the nine months ended September 30, 2008.

Gross profit for the third quarter of 2009 was $0.9 million, compared with a gross profit of $2.1 million for the third quarter of the previous year.

Operating loss for the third quarter of 2009 was $2.3 million, compared with an operating profit of $0.4 million for the same period last year.

BVR's order backlog at the end of the third quarter of 2009 was approximately $47.5 million.

The Company announced on July 20, 2009, that it has signed an agreement with Elbit Systems Ltd. (NASDAQ:ESLT), pursuant to which BVR shall sell to Elbit substantially all of its assets in consideration for a cash payment of approximately $34,000,000. Since the Company is of the opinion that the probability of closing the transaction is high when preparing the financial statements the Company took into consideration the expenses relating to such transaction in an amount of approximately $2.5 million.

BVR Systems (1998) Ltd., (OTCBB: BVRSF.OB) is a diversified world leader in advanced defense training and simulation systems. For more information, visit the Company's web site at http://www.bvrsystems.com.

Safe Harbor Statement

This press release contains forward-looking statements within the meaning of the "safe harbor" provision of the Private Securities Litigation Reform Act of 1995. These statements are based on the current expectations or beliefs of BVR Systems' management and are subject to a number of factors and uncertainties that could cause actual results or performance of the Company to differ materially from those contemplated in such forward-looking statements. These factors include but are not limited to the fact that the Company has experienced reductions in backlog; the Company has reported operating and/or net losses in the past and may report operating and/or net loses in the future, conditions in Israel affect the Company's operations and may limit its ability to produce and sell its products, changes in technology and market requirements; decline in demand for the Company's products; inability to timely develop and introduce new technologies, products and applications; loss of market share and pressure on pricing resulting from competition, the risks and uncertainties relating to the purchase agreement with Elbit, including the closing of the transaction and the effects of the transaction on the Company, and risks and uncertainties relating to the operations of the Company following any such closing. For other factors that could cause BVR Systems' results to vary from expectations, please see the Company's Report on Form 6-K filed with the SEC on July 20, 2009 and the Company other reports filed from time to time with the SEC.

                                                   B.V.R. Systems (1998) Ltd.
                                                               and Subsidiary

    Condensed Consolidated Interim Statements of Operations for the

                           Nine months ended  Three months ended   Year ended
                              September 30       September 30     December 31
                             2009     2008      2009      2008        2008
                              (Unaudited)         (Unaudited)       (Audited)
                              $ thousands         $ thousands     $ thousands

    Revenues:
    Sales                            31,207  21,509  10,682   8,936  29,711
    Royalties, commissions and        3,410   1,783     193     178   1,855
    others
    Total revenues                   34,617  23,292  10,875   9,114  31,566
    Cost of revenues                 26,294  17,040   9,959   7,024  23,282
    Gross profit                      8,323   6,252     916   2,090   8,284
    Operating expenses:
    Research and development          1,325     894     430     374   1,213
    Selling and marketing             1,493   1,747     537     579   2,128
    General and administrative        3,735   2,299   2,203     701   2,773
    Total operating expenses          6,553   4,940   3,170   1,654   6,114
    Operating profit (loss)           1,770   1,312 (2,254)     436   2,170
    Financial income                    290     435      63      44     219
    Financial expenses              (1,901)   (654) (1,092)   (340)   (766)
    Financial expenses, net         (1,611)   (219) (1,029)   (296)   (547)
    Profit (loss) before taxes on       159   1,093 (3,283)     140   1,623
    income
    Income tax expense                    -       -       -       -       -
    Net profit (loss) for the           159   1,093 (3,283)     140   1,623
    period
    Earnings (loss) per share
    Basic earnings per share           0.00    0.01  (0.03)    0.00   0.014
    Diluted earnings per share         0.00    0.01  (0.03)    0.00   0.014



    Contacts:
    Ilan Gillies, CEO
    BVR Systems (1998) Ltd.
    Tel: +972-3-900-8000

SOURCE BVR Systems (1998) Ltd.