Rosh Ha'ayin, Israel -  March 6, 2006 - BVR Systems (1998) Ltd. (OTCBB: BVRSF.OB), a diversified world leader in advanced military training and simulation systems, today announced a net loss of $308 thousands or $0.00 per share for the fourth quarter of 2005, compared with a net earning of $7 thousands, or $0.00 per share for the fourth quarter of 2004. Net earning for fiscal 2005 was $121 thousands or $0.00 per share, compared with a net loss of $1.2 million or $0.01 per share for fiscal 2004.

Revenues for the fourth quarter of 2005 grew to $4.5 million, compared with revenues of $3.6 million for the fourth quarter of 2004.  In fiscal 2005, BVR's revenues grew to $19.2 million compared with revenues in fiscal 2004 of $12.7 million.

Gross profits for the fourth quarter of 2005 were $1.0 million, compared with gross profits of $1.1 million for the fourth quarter of the previous year. For fiscal 2005, gross profits were $4.5 million compared with a gross profit of $2.5 million for fiscal 2004.

Operating loss for the fourth quarter of 2005 was $0.2 million, compared with operating earnings of $0.2 million for the same period last year. Operating earnings for fiscal 2005 were $0.4 million compared with an operating loss of $0.8 million for fiscal 2004.

Mr. Ilan Gillies, BVR Systems CEO, commented: "We are very pleased with the results reported today. We believe that they follow changes we have undertaken since the beginning of 2004, which include a new strategy, restructuring of the organization and unifying the technology". "BVR employees are the key to our success. These achievements were possible thanks to their dedication and talent." added Gillies.

"BVR is establishing a US and FMS market presence as well as enhancing BVR's leadership position in the Embedded Training market through acquisitions." said BVR's Chairman Aviv Tzidon. The company announced, two week ago, that it is in the process of acquiring Blue Ridge Simulation, Inc. (BRS), a leading US supplier of high-performance radar simulators.

During the fourth quarter of 2005 and January 2006 the company announced several new contracts including its sub-contract regarding the F16I simulator to the Israeli Air Force, IFEWS systems to the Israeli Air Force, upgrade of two MB339A training aircraft simulators to Aermacchi S.p.A. and an F16 MLU simulator to an international customer. Furthermore, the company demonstrated its Embedded Virtual Avionics (EVA) product with its ground breaking air-to-ground radar capabilities at the Singapore Air Show last month.

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

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. For other factors that could cause BVR Systems' results to vary from expectations, please see the Company's reports filed from time to time with the SEC.

Contacts:

Ilan Gillies, CEO

BVR Systems (1998) Ltd.

Tel: 011 972 3 900 8000