[KPMG LETTERHEAD]

October 15, 2003

Securities and Exchange Commission
Washington, D.C. 20549

Ladies and Gentlemen:

We were previously  principal  accountants  for Data Systems and Software,  Inc.
and, under the date of April 14, 2003, we reported on the consolidated financial
statements  of Data  Systems  and  Software,  Inc. as of and for the years ended
December 31, 2002 and 2001. On October 9, 2003,  we resigned.  We have read Data
Systems and Software,  Inc.'s  statements  included under Item 4 of its Form 8-K
dated October 15, 2003, and we agree with such statements.

Very truly yours,
KPMG LLP