PalmPoint, a subsidiary of Point Of Sale Limited (Nasdaq:POSI), today announced that it has been selected by mineral water distribution giant Eden Springs Group to implement the PalmOrder and PalmDist software systems across the entire Eden Springs Group Israeli and European sales distribution network.

The PalmPoint family of portable software solutions enables operatives to accept customer orders by means of a simple hand-held, cellular communications device, and instantaneously transmit the data to a central computer located at headquarters. The software applications function on a standard Windows CE operating platform and support several different languages. The system will permit Eden Springs field representatives to maintain constant, real-time communications between the sales force and headquarters. This ability to update incoming data offers in real time should provide Eden Springs cost and time saving benefits, promote efficiency and help to eliminate misuse and wastage.

Eden Springs Group, a leading direct distributor of mineral water to businesses and homes throughout Israel and Europe, selected PalmPoint after completion of a pilot program in January 2000. The first phase is expected to automate 200 Israeli distributors and implementation of phase two will involve a roll-out of the system across the company's entire European distribution network including Spain, Switzerland and Poland. The complete program would automate 400 distributors.

"As one of the leading mineral water suppliers in direct distribution in Europe, and leader in Israel, Eden Springs Group depends on efficient supply-chain management and state-of-the-art technology," said Lior Ben-Azri, CTO of Eden Springs group. "We believe that in the near future, PalmPoint's hand-held solutions will help us to achieve time saving, loss prevention and increased efficiency."

Moti Lipman, PalmPoint president commented, "We are privileged to be selected by the Eden Springs Group for this important implementation. While our products enjoy wide usage in Israel, especially amongst retailers, the opportunity to move upstream in the consumer products supply chain is a logical extension to our capabilities. We are equally excited about the opportunity to showcase our portable systems capabilities in Europe for both retailers and suppliers."

Point of Sale Limited values the first phase of the contract in Israel, including professional services, at $.5 million, with the expected roll-out occurring over the next few months. Further phases are expected to roll out across the company's European distribution network in Spain, Switzerland and Poland.

About Point of Sale Ltd.

Point of Sale Limited, with headquarters in Israel, develops and markets enterprise-wide open software solutions for the food retailing and manufacturing industries. The Company's products are targeted at improving the efficiency of operations, reducing costs and increasing worker productivity. With installations in more than 15,000 stores across 41 countries, the Company has marketed its software solutions to supermarkets, convenience stores, restaurants and consumer goods manufacturers through direct sales, distributors, local dealers and through its US subsidiary StorePoint and its various other subsidiaries. The Company was founded in 1982 and its Ordinary Shares have been publicly traded on the Tel Aviv Stock Exchange since November 1994 and on the Nasdaq National Market System under the symbol "POSI" since July 1998. For further information, visit the Company's Web sites at www.pos.co.il or www.storepoint.com.

Safe Harbor for Forward Looking Statements: Except for statements of historical fact, the information herein constitutes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the Company's actual results, performance or achievements to be materially different from any future results implied by such forward-looking statements. Such factors may include the Eden Springs Group's on-going acceptance of the Company's products, the performance of those products, Eden Springs Group's continued commitment to roll-out the Company's products in their distributors and general business conditions and other factors over which Point of Sale Limited may have little or no control. The Company undertakes no obligation to publicly release the results of any revisions to these forward-looking statements that may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.