ROSH HAAYIN, Israel, February 22 /PRNewswire-FirstCall/ -- BVR Systems (OTC: BVRSF.OB - News), a world leader in advanced defense training and simulation systems, today announced that it has signed a non-binding term sheet for the acquisition of 100% of the shares of the US-based corporation Blue Ridge Simulation, Inc. (BRS). BRS is a privately-held supplier of high-performance radar simulators for the Department of Defense, commercial and international training applications. In consideration, BVR will pay up to US $ 5,000,000 with the combination of issuing BVR's shares and pay cash amounts. The closing of the transaction is subject to due diligence review of BRS by BVR, the execution of definitive documentation and the receipt of customary third-party and regulatory approvals.

"The acquisition of BRS is a key milestone in BVR's strategy to establish its market presence in North America and for FMS markets". We believe we have found the perfect match for us" said BVR's Chairman Aviv Tzidon.

"The synergy and complementary assets between BVR and BRS enhance key aspects of market spread, customers and technology", explained Tzidon. "We feel that the most significant part of the merger is the synergy between the people and that the leadership of BRS will successfully lead our efforts in these markets"

BVR CEO Ilan Gillies added: "Merging these complementary assets will contribute considerably to BVR's leading position in the live and embedded training market. BRS' products will extend BVR capabilities in simulating advanced airborne, naval and civilian radars for both our virtual and live training systems. Our architectural synergy will enable us to provide our customers with more diversified solutions in a shorter time-to-market.

"We are very excited about working with BVR." said Thomas Allen, President of BRS. "This merger will allow us to extend our radar simulator product line to the growing embedded training sector, and to extend our offerings to expanded international markets."

About BVR Systems

BVR Systems is a world leader in advanced defense training and simulation systems. The Company offers highly-efficient, cost-effective solutions to the simulation, training and debriefing needs of modern air, sea and ground forces.

For more information visit the Company's web site at http://www.bvrsystems.com

About Blue Ridge Simulation

Blue Ridge Simulation, Inc. (BRS) is a leading supplier of high-performance radar simulators for Department of Defense, commercial and international training applications: from basic weather radar simulators <http://www.blueridgesimulation.com/WeatherRadar.htm> to high-performance Digital Radar Landmass Simulators (DRLMS) <http://www.blueridgesimulation.com/HighPerformanceRadar.htm> for surveillance and fire control radar applications. BRS also supplies other specialized PC-based devices to the simulation community including instructor stations, <http://www.blueridgesimulation.com/IOS.htm> custom interface systems, aural cue systems, <http://www.blueridgesimulation.com/Aural.htm> and custom embedded applications. <http://www.blueridgesimulation.com/CustInt.htm>

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements, other than statements of historical facts, including statements regarding BVR's strategy, future operations, financial position, future revenues, projected costs, prospects, plans and objectives of management, may be deemed to be forward-looking statements. The words "targets", "anticipates," "believes," "estimates," "expects," "intends," "may," "plans," "projects," "will," "would" and similar expressions or negative variations thereof are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. BVR may not actually achieve the plans, intentions or expectations disclosed in our forward-looking statements and readers should not place undue reliance on the forward-looking statements. There are a number of important factors that could cause actual results or events to differ materially from the plans, intentions and expectations disclosed in the forward-looking statements made in this press release. Investors and others are therefore cautioned that a variety of factors, including certain risks, may affect BVR's business and cause actual results to differ materially from those set forth in the forward-looking statements. These risk factors include, without limitation, (i) a slowdown of expenditures by communication service providers; (ii) increased competition from alternative communication systems; (iii) the failure of BVR's existing or prospective customers to purchase products as projected; (iv) BVR's inability to successfully implement cost reduction or containment programs; (v) a loss of any of BVR's key customers; (vi) BVR's ability to retain Axtel, Mexico, as its largest customer; and (vii) specific to this press release, (a) BVR's ability to close the acquisition, (b) to successfully integrate the operations of ArelNet into its business, (c) the future success of the WiMAX standard, and (d) the willingness of operators to buy and deploy networks comprising BVR and ArelNet products. BVR is also subject to the risks and uncertainties described in its filings with the Securities and Exchange Commission, including its Annual Report on Form 20-F for the year ended December 31, 2004. You should read those factors as being applicable to all related forward-looking statements wherever they appear in this press release. BVR does not assume any obligation to update any forward-looking statements.