B.O.S. Receives Notices of Failure to Comply With Nasdaq Global Market Listing Standards

RISHON LEZION, Israel, September 21, 2009 (GLOBE NEWSWIRE) – B.O.S. Better Online Solutions Ltd. (“BOS” or the “Company”) (NASDAQ: BOSC) announced today that on September 15, 2009 it received a notice from the Listing Qualifications Department of The Nasdaq Stock Market (“Nasdaq”) advising the Company that it has failed to comply with Nasdaq’s requirement that listed securities maintain a minimum bid price of $1.00 per share as set forth in Nasdaq Marketplace Rule 5450(a)(1). In a separate notice dated September 15, 2009, Nasdaq also advised the Company that the market value of the Company’s Ordinary Shares did not comply with the minimum $5 million market value of publicly held shares requirement for continued listing on the Nasdaq Global Market set forth in Nasdaq Marketplace Rule 5450(b)(1)(C). In addition, in a separate notice dated September 17, 2009, Nasdaq advised the Company that it was not in compliance with Nasdaq Marketplace Rule 5450(b)(1)(A) which requires that a Nasdaq Global Market listed company maintain a minimum of $10 million in stockholders’ equity. At June 30, 2009, the Company had stockholders’ equity of $8,420,000.

The Company has been provided with a 180 day grace period until March 15, 2010 to regain compliance with the $1.00 minimum bid price requirement and 90 days, or until December 14, 2009, to regain compliance with the $5 million market value requirement. Unless the market value of the Company’s publicly held Ordinary Shares is $5 million or more for a minimum of 10 consecutive business days during the 90 day period ending December 14, 2009 and Nasdaq determines the Company has demonstrated compliance with Rule 5450 (b)(1)(C) the Company would no longer qualify for continued listing on the Nasdaq Global Market. The Company has 15 days to submit a plan to Nasdaq to regain compliance with the $10 million stockholders’ equity requirement and if this plan is accepted by Nasdaq, the Company may be granted an extension of up to 105 calendar days from the date of the notice to evidence compliance with this requirement.

If the Company regains compliance with the $5 million market value requirement by December 14, 2009 and the $10 million stockholders’ equity requirement within any extension period that may be granted by Nasdaq, it would have until March 15, 2010 to regain compliance with the $1.00 minimum bid price requirement.

In the event that the Company is unable to comply with the $5 million market value requirement by December 14, 2009 or the $10 million stockholders’ equity requirement within any extension period that may be granted by Nasdaq, Nasdaq further advised the Company that it can apply to transfer the listing of its Ordinary Shares to The Nasdaq Capital Market. If the Company submits an application to have its Ordinary Shares transferred to The Nasdaq Capital Market and pays the applicable listing fee by December 14, 2009 (in the case of the market value requirement) or within any extension period that may be granted by Nasdaq (in the case of the stockholders’ equity requirements) or if no extension is granted, by October 1, 2009, Nasdaq’s initiation of any delisting proceedings will be stayed pending Nasdaq’s review of the Company’s application. To transfer its listing, the Company must satisfy The Nasdaq Capital Market’s requirements for continued listing (other than the $1.00 minimum bid price requirement, which it must comply with by March 10, 2010). If Nasdaq does not approve the Company’s transfer application, Nasdaq will provide written notification to the Company that its Ordinary Shares will be delisted.