B.O.S.

NASDAQ: BOSC

INVESTOR PRESENTATION – JUNE 2017

FORWARD LOOKING STATEMENTS

The forward-looking statements contained herein reflect management's current views with respectto future events and financial performance. These forward-looking statements are subject tocertain risks and uncertainties that could cause the actual results to differ materially from those inthe forward-looking statements, all of which are difficult to predict and many of which are beyondthe control of BOS. These risk factors and uncertainties include, amongst others, the dependencyof sales being generated from one or few major customers, the uncertainty of BOS being able tomaintain current gross profit margins, inability to keep up or ahead of technology and to succeedin a highly competitive industry, inability to maintain marketing and distribution arrangements andto expand our overseas markets, uncertainty with respect to the prospects of legal claims againstBOS, the effect of exchange rate fluctuations, general worldwide economic conditions, thecontinued availability of financing for working capital purposes and to refinance outstandingindebtedness and the risk that the iDnext acquisition may not be consummated; and additionalrisks and uncertainties detailed in BOS's periodic reports and registration statements filed with theU.S. Securities Exchange Commission. BOS undertakes no obligation to publicly update or revise anysuch forward-looking statements to reflect any change in its expectations or in events, conditionsor circumstances on which any such statements may be based, or that may affect the likelihoodthat actual results will differ from those set forth in the forward-looking statements.

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Leading integrator of Automatic Identification Data Collection systems (“AIDC”) and Supply Chain services; offering turnkey integration services as well as stand-alone products

Global enterprises rely on BOS solutions

1,800+ active customers in Fiscal 2015; worldwide in a number of industry verticals: avionics, defense, electronic manufacturers, electronic assembly, logistic, production line, livestock, transportation, waste management, retail

BOS helps enterprises:

Automate operational process by asset tracking systems

Enhance supply chain efficiency

Y16: revenue of $27m, EBITDA of $1.1m

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COMPANY OVERVIEW

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SEGMENT OVERVIEW

SUPPLY CHAIN DIVISIONRFID AND MOBILE DIVISION

DIVISION

Comprehensive suite of Automatic Identification Data Collection system based on RFID and Mobile technology for organizations of varying sizes

Improve efficiencies in enterprise operation by asset tracking systems

Turnkey solutionsHardwareSoftwareIntegrationPost sale services

PRODUCTS

REVENUE % (FISCAL 2016)

44%$12M

SELECTED

CUSTOMERS

Helps large organizations world wide minimize the number of electronic components suppliers

Provides electronic components sourcing and consolidation services (kitting)

Design components - connection between client’s R&D and the manufacturer

56% (45% outside Israel)$15M

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AIDC MARKET OVERVIEW

Healthcare/Medical, 0.2, 2%

Retail, 0.4, 4%

Consumer Products, 0.012, 0%

Other, 0.5, 6%

Liesure/Sports, 0.1, 1%

Manufacturing, 0.2, 2%

Financial/Security, 2.8, 30%

Airlines/Airports, 0.024, 0%

Agriculture/Farming, 0.9, 10%

Land, Sea Logistics, 0.8,

9%

Passenger (Transport/Auto), 3.3,

36%

AIDC MARKETS BY APPLICATION (2014)

$US Billion (including hardware, software and services

AIDC MARKETS BY APPLICATION (2024)

Healthcare/Medical, 1.4, 5%

Retail, 8.1, 27%

Consumer Products, 1.434, 5%

Other, 1.2, 4%

Liesure/Sports, 0.2, 1%

Manufacturing, 1, 3%

Financial/Security, 5.2, 17%

Airlines/Airports, 0.174, 0%

Agriculture/Farming, 3.4, 11%

Land, Sea Logistics, 1.9, 6%

Passenger (Transport/Auto), 6.4,

21%

$US Billion (including hardware, software and services

*Source: IDTechEx Market Research via Supply Chain Digest, July 29, 2014, http://www.scdigest.com/ontarget/14-07-29-1.php?cid=8328

Total value of $9.2 billion Total value of $30.4 billion

Large, diversified customer base spanning multiple industry verticals

More than 1,800 customers spanning varied segments: RFID and Mobile: approx. 1500 active customers in Fiscal 2016 spanning the retail (food, fashion,

pharmacy), manufacturers (healthcare and food), agriculture (packing centers and life stock) and waste management sectors

Supply Chain: approx. 300 active customers in Fiscal 2016, spanning the avionics, defense, electronic manufacturers, assembly, and telecommunications sectors

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DIVERSIFIED CUSTOMER BASE

DEFENSE ELEC. ASSEMBLYAVIONICS

RETAIL TRANSPORTATION WASTE

Live in Clean City

MANUFACTURING SEA PORTSAGRICULTURE

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RFID AND MOBILE DIVISION PRODUCT AND SERVICES

OVERVIEW

PRODUCT TYPE

HARDWARE

SOFTWARE

SERVICES

Thermal and barcode automatic printers RFID and barcode scanners and readers Wireless, mobile and forklift terminals Wireless infrastructure Active and passive RFID tags (HF & UHF) Consumables (ribbons, RFID tags, labels)

Industry-specific software applications Warehouse Management Software Application integrates with ERP system

Wholly owned subsidiary BOS-Dimex is the RFID and Mobile division of BOS

Integration of HW and SW with customer’s ERP

Post sale services Inventory physical counting services

More than 50% ongoing revenues from support and consumable

Expected to grow in Fiscal 2017

Revenues of $12M in Fiscal 2016

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RFID SOLUTIONS – NOTEWORTHY CONTRACTS

More than 1500 active and diversified customers in Fiscal 2016 spanning varied segments

RETAIL

MANUFACTURERS

AGRICULTURE/LIVESTOCK

RETAIL

SEA PORTS

Computerized picking cart for internet ordering center Information on product on shelf – price, quantity available, etc. Warehouse Management Software Shelf labeling services for warehouses Inventory counting services (serving 2,500 stores)

Automated system for tracing inventory in process Automatic label printing for boxes during packaging process

Computerized forklift – tracing boxes

Computerized tracing and managing records of livestock

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RFID COMPETITIVE LANDSCAPE

GLOBAL RFID PLAYERSPRIMARY ISRAELI COMPETITORS

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SUPPLY CHAIN SOLUTIONS DIVISION OVERVIEW

PRODUCT TYPE

COMPONENTS(ACTIVE AND PASSIVE)

(KITTING)

CUSTOM DESIGN

REVENUE MODEL SELECTED BRANDS

Wholly owned subsidiary BOS-Odem is the supply chain division of BOSC

Supplying electronic components to manufacturers in military/commercial aerospace markets

Sales and engineering services and support for components and diversified sourcing partners (representations)

Kitting – for aerospace markets Electronics components and consolidation

services Inventory and quality control management

of components entering production lines

Tailored design of components according to customer’s need

Direct sales to customers Sales through distributors

(Far East)

Direct sales engineering to customers

Long sale cycle with long leaved revenues

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SUPPLY CHAIN SOLUTIONS COMPETITIVE LANDSCAPE

PRIMARY ISRAELI COMPETITORS GLOBAL PLAYERS

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SUPPLY CHAIN SOLUTIONS – NOTEWORTHY CONTRACTS

Electro-mechanical components Managing inventory levels ensuring continued supply

to production lines Supplied “kit” of components directly to production

lines

Electro-mechanical and integrated circuits Supplied “kit” Work directly with subcontractors

AVIONICS

DEFENSE COMPANIES

ELEC. ASSEMBLY

Subcontractors for Israeli defense industry

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FINANCIAL PERFORMANCE

EXECUTION

Net profit Y2009: ($9.1M) LTM MARCH 17: $0.3M

EBITDA Y2009: ($5M) LTM: $1M

Debt net of cash & deposits DEC. 2009: $14.9M MARCH 2017: $2M

Working capital DEC. 2009: $0.23M MARCH 2017: $6.5M

SHAREHOLDERS EQUITY DEC. 2009: $3.6M MARCH 2017: $9M

LTM HIGHLIGHTS

Revenue: $26.5M.

Net Profit: $290K.

NON GAAP net profit: $460K.

EBITDA: $1M.

Leading Israeli RFID and Supply Chain solutions provider

Management with proven track record

Outlook for Y17 - Expecting growth in revenues and VS. Y16 and Net income of $500,000

Clear roadmap for growth – growing demands for Supply chain services in the Israeli defense industry and Far East with potential acquisition

Acquisition of complementary businesses for the RFID and Mobile division beginning with initial acquisition in January Fiscal Year 2016

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INVESTMENT HIGHLIGHTS