BOS Better OnLine Solutions, Ltd. Subsidiary Lynk USA Signs First Major TeleLynk IP Telephony Distribution Contract With Daewoo International Corporation

Business Wire, July 21, 1999

LOS ANGELES--(BUSINESS WIRE)--July 21, 1999--

Lynk USA, ("Lynk") a wholly owned subsidiary of BOS Better Online Solutions, Ltd. (NASDAQ: BOSCF) announced today that it has entered into a two year contract with Daewoo International (America) Corp. ("Daewoo").

The terms of the agreement call for Daewoo to distribute Lynk products, with an emphasis on TeleLynk, Lynk's leading edge IP telephony solution for business and the enterprise. In addition, Lynk USA has agreed to grant Daewoo exclusive master distributorship for Lynk products in Korea, Poland and will continue to hold negotiations with Daewoo for exclusive master distributorships in Brazil and elsewhere in South America and for non-exclusive master distributorship in Japan.

Daewoo will act as Master Distributor for Lynk products in the North American (US/Canada) market on a non-exclusive basis. Daewoo's North American Sales network of 20 plus sales representatives will be trained by Lynk technicians and will market and distribute Lynk products directly to Daewoo's client base, the majority of which are Fortune 200 companies.

Daewoo, a leading multinational general trading company, is expanding its business to include international finance, resource development, world-wide investment and project management on the basis of its expertise and experience in gathering information and organizing in high volume trade. "We are extremely excited at the opportunity of working with Lynk," said Hong-Key Jhun, President of Daewoo. "The TeleLynk IP gateway will provide our clients with the ability to add secure, high quality, IP telephony capabilities to their existing network infrastructure with a minimum of technical knowledge. We have looked at other systems available in the marketplace and have found none that can compete with TeleLynk on both quality and cost," continued Jhun.

"Our engineers have worked diligently to develop the state of the art IP telephony solution for small, middle and large size business use," said Jacob Lee, CEO of Lynk USA. "We have believed all along that the TeleLynk product would gain significant success in the IP telecommunications marketplace. This agreement with Daewoo gives us an active distribution channel using Daewoo's sales network which consists of 200 branch offices world-wide, allowing Lynk to increase market share dramatically in the short term as well as in the long term," continued Lee, who is also CEO of Pacific Information Systems, Inc. (Pacinfosys), BOS' largest subsidiary. Lee went on to say that sales of Lynk products by Daewoo has already commenced and that he expects significant orders in the near term.

"Discussions continue with potential technology partners as well as distribution partners, for example, we are negotiating with distributors such as Daewoo who are asking for geographical exclusivity for specific countries in which they have a strategic presence," said Israel Gal, Chairman and President of BOS. "We expect a number of these discussions to produce agreements over the next several months," stated Gal.

About BOS Better On-Line Solutions

BOS creates innovative and powerful solutions for seamless integration of PCs and LANs into the midrange host environment. The company designs, develops, manufactures, markets and supports superior products that provide efficient solutions to PC connectivity challenges in the AS/400 environment.

Reflecting strategic expansion into growing communication markets, BOS established Lynk in 1995, which develops and supplies high-quality, end-to-end IP telephony and remote access solutions for the corporate market.

In October 1997, the company purchased a percentage of Surf Communication Solutions Ltd., a software solutions developer for access products that are integrated into telecommunication systems and electronic consumer goods.

In June 1998 BOS acquired Pacific Information Systems, a rapidly growing, privately owned reseller of ISP, networking, and high-performance PC products headquartered in Portland, Ore. The acquisition has provided a significant boost to BOS' distribution capabilities in North America.

Current efforts at BOS are focused on web-based emulations, multi-platform electronic forms design and management, remote controller solutions, IP Telephony and other remote access products of the Lynk subsidiary, and the development of products which integrate the cutting edge software modem technology of Surf Communication Solutions Ltd., the company's affiliate.

More information on BOS, its products, and affiliates can be found on the World Wide Web at www.bosweb.com

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, including, but not limited to, those risks and uncertainties detailed in BOS' periodic reports and registration statements filed with the U.S. Securities and Exchange Commission.