B.O.S. Announces Financial Results for Third Quarter of 2013

B.O.S. Announces Financial Results for Third Quarter of 2013

Net Profit of $219,000 and NON GAAP Net Profit of $415,000

RISHON LEZION, Israel, Dec. 2, 2013 (GLOBE NEWSWIRE) -- B.O.S. Better Online
Solutions Ltd. (the "Company", "BOS") (Nasdaq:BOSC), a leading Israeli
provider of RFID and supply chain solutions to global enterprises, today
reported its financial results for the three months ended September 30, 2013.

Highlights - on a GAAP basis:

  *Revenues for the third quarter of 2013 grew by 16% as compared to the
    comparable quarter last year. Revenues for the first nine months of 2013
    grew by 3%, as compared to the comparable period last year.
  *Net profit for the third quarter of 2013 amounted to $219,000, as compared
    to a net loss of $66,000 in the comparable period last year. Net loss for
    the first nine months of 2013 amounted to $43,000 as compared to a net
    loss of $586,000 in the comparable period last year.

Highlights - on a NON GAAP basis:

  *Net profit for the third quarter of 2013 amounted to $415,000, as compared
    to a net profit of $124,000 in the comparable period last year. Net profit
    for the first nine months of 2013 amounted to $401,000, as compared to a
    net loss of $60,000 in the comparable period last year.
  *EBITDA for the third quarter of 2013 amounted to $495,000, as compared to
    $175,000 in the comparable period last year. EBITDA for the first nine
    months of 2013 amounted to $807,000 as compared to $472,000 in the
    comparable period last year.

Cash and cash equivalents and long term bank deposit amounted to $931,000 as
of September 30, 2013, compared to $792,000 as of December 31, 2012. The trend
of reduction in loans has continued and by September 30, 2013 our bank loans
were reduced to $7 million from $7.6 million as of December 31, 2012, and $9
million as of December 31, 2011. We expect a further reduction in our loans in
the next 12 months.

Edouard Cukierman, Chairman of the Board, stated, "We are very pleased with
these results, which reflect a continuing improvement in the Company's
performance and financial position. We expect these positive trends to
continue in the future."

Yuval Viner, BOS CEO, added "We are continuing our efforts to streamline our
operations, improve our products and strengthen our financial position. We are
confident that we will meet our challenges and expect to end 2013 with a net
profit on a non-GAAP basis."

Conference Call

BOS will host a conference call on Monday, December 2, 2013 at 10:00 a.m. ET
5:00 p.m. Israel time. A question-and-answer session will follow management's
presentation. Interested parties may participate in the conference call by
dialing to + 972-3-9180644 approximately five to ten minutes before the call
start time:

For those unable to listen to the live call, a replay of the call will be
available from the day after the call on BOS's website, at:
http://www.boscorporate.com

About BOS

B.O.S. Better Online Solutions Ltd. (Nasdaq:BOSC) is a leading provider of
Mobile and Supply Chain solutions to global enterprises. BOS' mobile division
offers both turnkey integration services as well as stand-alone products,
including best-of-breed RFID and AIDC hardware and communications equipment,
BOS middleware and industry-specific software applications. The Company's
supply chain division provides electronic components consolidation services to
the aerospace, defense, medical and telecommunications industries as well as
to enterprise customers worldwide.

For more information, please visit: www.boscom.com

Use of Non-GAAP Financial Information

BOS reports financial results in accordance with U.S. GAAP and herein provides
some non-GAAP measures. These non-GAAP measures are not in accordance with,
nor are they a substitute for, GAAP measures. These non-GAAP measures are
intended to supplement the Company's presentation of its financial results
that are prepared in accordance with GAAP. The Company uses the non-GAAP
measures presented to evaluate and manage the Company's operations internally.
The Company is also providing this information to assist investors in
performing additional financial analysis that is consistent with financial
models developed by research analysts who follow the Company. The
reconciliation set forth below is provided in accordance with Regulation G and
reconciles the non-GAAP financial measures with the most directly comparable
GAAP financial measures.

Safe Harbor Regarding Forward-Looking Statements

The forward-looking statements contained herein reflect management's current
views with respect to future events and financial performance. These
forward-looking statements are subject to certain risks and uncertainties that
could cause the actual results to differ materially from those in the
forward-looking statements, all of which are difficult to predict and many of
which are beyond the control of BOS. These risk factors and uncertainties
include, amongst others, the dependency of sales being generated from one or
few major customers, the uncertainty of BOS being able to maintain current
gross profit margins, inability to keep up or ahead of technology and to
succeed in a highly competitive industry, inability to maintain marketing and
distribution arrangements and to expand our overseas markets, uncertainty with
respect to the prospects of legal claims against BOS, the effect of exchange
rate fluctuations, general worldwide economic conditions and continued
availability of financing for working capital purposes and to refinance
outstanding indebtedness; and additional risks and uncertainties detailed in
BOS's periodic reports and registration statements filed with the U.S.
Securities Exchange Commission. BOS undertakes no obligation to publicly
update or revise any such forward-looking statements to reflect any change in
its expectations or in events, conditions or circumstances on which any such
statements may be based, or that may affect the likelihood that actual results
will differ from those set forth in the forward-looking statements.

                                                                 
CONSOLIDATED STATEMENTS OF OPERATIONS
U.S. dollars in thousands, except per share data
                                                                 
                                      Nine months ended   Three months ended
                                      September 30,      September 30,
                                      2013      2012      2013      2012
                                      (Unaudited)         (Unaudited)
                                                                 
Revenues                               $18,847   $18,349   $6,262    $5,386
Cost of revenues                       15,151    14,299    4,825     4,084
Inventory Write offs                  138       241       86        106
Gross profit                           3,558     3,809     1,351     1,196
                                                                 
Operating costs and expenses:                                     
Research and development              --        114       --        28
Sales and marketing                   2,131     2,350     730       721
General and administrative            1,035     1,216     257       376
Total operating costs and expenses     3,166     3,680     987       1,125
                                                                 
Operating profit                      392       129       364       71
Financial expenses, net               (415)     (598)     (129)     (120)
Other expenses, net                    (22)      (80)      (22)      --
Income (loss) before taxes on income  (45)      (549)     213       (49)
Tax benefit (taxes on income)          2         (37)      6         (17)
Net Income (loss)                      $(43)     $(586)    $219      $(66)
                                                                 
Basic and diluted net income (loss)    $(0.04)   $(0.52)   $0.19     $(0.04)
per share
                                                                 
Weighted average number of shares used
in computing basic net earnings per    1,161,927 1,117,810 1,175,871 1,117,929
share
Weighted average number of shares used
in computing diluted net earnings per  1,162,626 1,117,810 1,177,970 1,117,929
share
                                                                 

                                                            
CONSOLIDATED BALANCE SHEETS
(U.S. dollars in thousands, except per share amounts)
                                                            
                                               September 30, December 31,
                                               2013          2012
                                               (Unaudited)   (Audited)
ASSETS                                                       
                                                            
CURRENT ASSETS:                                              
Cash and cash equivalents                      $454          $354
Trade receivables                              7,665         8,007
Other accounts receivable and prepaid expenses 530           616
Inventories                                    3,020         3,160
                                                            
Total current assets                            11,669        12,137
                                                            
LONG-TERM ASSETS:                                            
Severance pay fund                              24            21
Bank deposit                                    477           438
Other assets                                    14            11
                                                            
Total long-term assets                          515           470
                                                            
PROPERTY, PLANT AND EQUIPMENT, NET              724           963
                                                            
OTHER INTANGIBLE ASSETS, NET                   222           357
                                                            
GOODWILL                                       4,122         4,122
                                                            
                                               $17,252       $18,049
                                                            

                                                             
CONSOLIDATED BALANCE SHEETS
U.S. dollars in thousands, except share and per share data
                                                             
                                                September 30, December 31,
                                                2013         2012
                                                (Unaudited)   (Audited)
                                                             
LIABILITIES AND SHAREHOLDERS' EQUITY                          
                                                             
CURRENT LIABILITIES:                                          
Short-term bank loans and current maturities     $6,089        $6,383
Trade payables                                  4,459         4,915
Employees and payroll accruals                   432           408
Deferred revenues                                613           467
Current maturities of liability to Dimex Systems 297           136
Accrued expenses and other liabilities          667           567
                                                             
Total current liabilities                        12,557        12,876
                                                             
LONG-TERM LIABILITIES:                                        
Long-term bank loans, net of current maturities 877           1,188
Accrued severance pay                            110           119
Liability to Dimex Systems                      508           710
                                                             
Total long-term liabilities                      1,495         2,017
                                                             
                                                             
COMMITMENTS AND CONTINGENT LIABILITIES                       
                                                             
SHAREHOLDERS' EQUITY                            3,200         3,156
                                                             
                                                             
Total liabilities and shareholders' equity       $17,252       $18,049
                                                             

                                                                  
CONSOLIDATED STATEMENTS OF CASH FLOWS
U.S. dollars in thousands
                                                                  
                                        Nine months ended Three months ended
                                        September 30,      September 30,
                                        2013     2012      2013      2012
                                                                  
                                                                  
Net Cash provided by (used in) operating $477     $1,351    $191      $211
activities
Net Cash provided by (used in) investing 185      (146)     245       (59)
activities
Net Cash used in financing activities    (562)    (1,455)   (372)     (392)
Increase (decrease) in cash and cash     100      (250)     64        (240)
equivalents
Cash and cash equivalents at the         354      411       390       401
beginning of the period
Cash and cash equivalents at the end of  $454     $161      $454      $161
the period
                                                                  

                                                                 
RECONCILIATION OF NON-GAAP FINANCIAL RESULTS
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
(U.S. dollars in thousands, except per share amounts)
                                                                 
                               Three months ended September 30,
                               2013                                 2012
                               GAAP                               
                               (as reported) Adjustments Non-GAAP Non-GAAP
                                                                 
                                                                 
Revenues                        $6,262        $--         $6,262    $5,386
Gross profit                    1,351         86a         1,437     1,302
                                                                 
Operating costs and expenses:                                     
Research and development       --            --          --        28
Sales and marketing            730           (46)b      684       675
General and administrative     257           (42)c       215       338
Total operating costs and       987           (88)         899       1,041
expenses
                                                                 
Operating profit               364           174          538       261
Financial expenses, net        (129)         --          (129)     (120)
Other expenses,net             (22)          22d         --        --
Income before taxes on income   213           196          409       141
Tax benefit (taxes on income)  6             --          6         (17)
Net income                     $219          $196         $415      $124


Notes to the reconciliation:
a- Write off of slow moving inventory
b - Amortization of intangible assets
c - Stock based compensation
d - Property write off


                                                                  
RECONCILIATION OF NON-GAAP FINANCIAL RESULTS
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
(U.S. dollars in thousands, except per share amounts)
                                                                  
                                  Nine months ended September 30,
                                  2013                               2012
                                  GAAP                             
                                  (as reported) Adjustments Non-GAAP Non-GAAP
                                                                  
                                                                  
Revenues                           $18,847       $--        $18,847  $18,349
Gross profit                       3,558         138a       3,696    4,050
                                                                  
Operating costs and expenses:                                      
Research and development          --            --         --       114
Sales and marketing               2,131         (136)b     1,995    2,213
General and administrative        1,035         (148)c     887      1,169
Total operating costs and expenses 3,166         (284)       2,882    3,496
                                                                  
Operating profit                  392           422         814      554
Financial expenses, net           (415)         --         (415)    (577)
Other expenses, net                (22)          22d         --       --
Income (loss) before taxes on      (45)          444         399      (23)
income
Tax benefit (taxes on income)     2             --         2        (37)
Net income (loss)                  $(43)         $444        $401     $(60)
                                                                  

Notes to the reconciliation:
a- Write off of slow moving inventory
b - Amortization of intangible assets.
c - Stock based compensation.
d - Property write off.


                                                          
CONDENSED CONSOLIDATED EBITDA
(U.S. dollars in thousands)
                                                          
                                  Nine months ended Three months ended
                                  September 30,    September 30,
                                  2013     2012     2013     2012
                                  (Unaudited)       (Unaudited)
                                                          
                                                          
Operating Profit                 $392     $129     364      $71
Add:                                                      
Amortization of intangible assets 136      137      46       46
Stock based compensation           148      47       42       38
Depreciation                       131      159      43       20
EBITDA                             $807     $472     $495     $175
                                                          

                                                                                       
                                                                                       
         RFID and   Supply                               RFID and   Supply                 
         Mobile     Chain                                Mobile     Chain                  
         Solutions Solutions Intercompany Consolidated Solutions Solutions Intercompany Consolidated
         Nine months ended September 30,                   Three months endedSeptember 30,
         2013                                              2013
                                                                                       
                                                                                       
Revenues $7,179     $11,711   $(43)         $18,847        $2,332     $3,947    $(17)         $6,262
                                                                                       
Cost of   $5,095     $10,099   $(43)         $15,151        $1,573     $3,269    $(17)         $4,825
Revenues
                                                                                       
Inventory
write     $91        $47       $--         $138           $46        $40       $ --          $86
offs
                                                                                       
Gross     $1,993     $1,565    $--         $3,558         $713       $638      $--         $1,351
profit
                                                                                       
                                                                                       
         RFID and   Supply                               RFID and   Supply                 
         Mobile    Chain                                Mobile     Chain                  
         Solutions Solutions Intercompany Consolidated Solutions Solutions Intercompany Consolidated
         Nine months ended September 30,                   Three months endedSeptember 30,
         2012                                              2012
                                                                                       
                                                                                       
Revenues $6,551     $12,016   $(218)        $18,349        $2,047     $3,544    $(205)        $5,386
                                                                                       
Cost of   $4,634     $9,883    $(218)        $14,299        $1,396     $2,893    $(205)        $4,084
Revenues
                                                                                       
Inventory
write     $126       $115      $--         $241           $66        $40       $ --          $106
offs
                                                                                       
Gross     $1,791     $2,018    $--         $3,809         $585       $611      $--         $1,196
profit
                                                                                       

CONTACT: B.O.S. Better Online Solutions Ltd.
         Mr. Eyal Cohen, CFO
         +972-54-2525925
         eyalc@boscom.com