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As filed with the Securities and Exchange Commission on June 30, 2008.

UNITED
STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

FORM 20-F/A(Amendment No. 1)

(Mark One)

|  |                                                                                                                                                          
|- | ---------------------------------------------------------------------------------------------------------------------------------------------------------
|o | Registration
  statement pursuant to section 12(b) or 12(g) of the Securities Exchange Act
  of 1934                                                     
| 
|  | Or                                                                                                                                                       
| 
|x | Annual
  Report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
  for the fiscal year ended December 31, 2007                     
| 
|  | Or                                                                                                                                                       
| 
|o | Transition
  Report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
  for the transition period from ______ to ______.            
| 
|  | Or                                                                                                                                                       
| 
|o | Shell
  company report pursuant to section 13 or 15(d) of the Securities exchange act
  of 1934Date of event requiring this shell company report ________

Commission File Number 000-29992

OPTIBASE LTD.(Exact name of Registrant as specified in its charter)

Not Applicable
(Translation of Registrants name into English)

Israel
(Jurisdiction of incorporation or organization)

2 Gav Yam Center
7 Shenkar Street
Herzliya 46120, Israel+972-9-970-9288(Address of principal
executive offices)

Amir
Phillips
Tel: 972-9-9709200
Fax: 972-9-95860992 Gav Yam Center
7 Shenkar Street
Herzliya, 46120 Israel(Name,
Telephone, E-Mail and/or Facsimile and Address of Company Contact Person)

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Securities registered or to be registered pursuant to Section 12(b) of
the Act:


|                                 |                                            
|-------------------------------- | -------------------------------------------
|Title
  of Each Class            | Name
  of Each Exchange on Which Registered
|Ordinary Shares,                 | Nasdaq Global Market                       
|Nominal value NIS 0.13 per share |                                            

Securities registered pursuant to Section 12(g) of the Act:None

Securities for which there is a reporting obligation pursuant to
Section 15(d) of the Act:Not Applicable
(Title of class)

Indicate
the number of outstanding shares of each of the issuers classes of capital or
common stock as of the close of the period covered by the annual report: 14,097,380
Ordinary Shares, par value NIS 0.13 per share, including 377,470 Ordinary
Shares held by the registrant and 76,650 Ordinary Shares held by a trustee for
the benefit of employees under the Companys incentive plan, both have no
voting or equity rights.

Indicate
by check mark if the registrant is a well-known seasoned issuer, as defined in
Rule 405 of the Securities Act.

| |       |        | 
| | ----- | ------ | 
| | Yes o | No
  x | 

If
this report is an annual or transition report, indicate by check mark if the
registrant is not required to file reports pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934.

| |         |        | 
| | ------- | ------ | 
| | Yes
  o | No
  x | 

Indicate
by check mark whether the registrant: (1) has filed all reports required to be
filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the
preceding 12 months (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days.

| |         |        | 
| | ------- | ------ | 
| | Yes
  x | No
  o | 

Indicate
by check mark whether the registrant is a large accelerated filer, an
accelerated filer, or a non-accelerated filer. See definition of accelerated
filer and large accelerated filer in Rule 12b-2 of the Exchange Act. (Check
one):

|                            |                       |                          
|--------------------------- | --------------------- | -------------------------
|Large
  Accelerated filer o | Accelerated
  filer o | Non-accelerated
  filer x

Indicate by check mark which basis of accounting the
registrant has used to
prepare the financial statementsincluded in this filing:

U.S.
GAAP x

International
Financing Reporting Standards as issued by the International Accounting Standards
Board o

Other
o

If Other
has been checked in response to the previous question, indicate by check mark
which financial statement item the registrant has elected to follow:

| |             |             | 
| | ----------- | ----------- | 
| | Item
  17 o | Item
  18 o | 

-ii-

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# EXPLANATORY NOTE

This
Amendment No. 1 on Form 20-F/A (the Amendment) to our annual report on
Form 20-F for the fiscal year ended December 31, 2007, as filed with the Securities and
Exchange Commission (the Commission) on June 27, 2008 (the Form
20-F), is being filed solely for the purpose of correcting (1) a clerical error in
the date appearing in the consent of Brightman Almagor Zohar & Co., filed as Exhibit
15.2 to the Form 20-F, and (2) a clerical error in the name of the audited company
appearing in the consent of Brightman Almagor & Co., filed as Exhibit 15.3 to the
Form 20-F. Exhibits 15.2 and 15.3 are hereby replaced in their entirety.

Therefore,
this Amendment consists of a cover page, this explanatory note, a revised list of
exhibits (Item 19 of Part III), a signature page and the revised Exhibits 15.2
and 15.3.

This
Amendment speaks as of the date of the initial filing of the Form 20-F. Other than as
described above, this Amendment does not, and does not purport to, amend, update or
restate any other information or disclosure included in the Form 20-F and does not, and
does not purport to, reflect any events that have occurred after the date of the initial
filing of the Form 20-F. As a result, our annual report on Form 20-F for the fiscal year
ended December 31, 2007, as amended by this Amendment, continues to speak as of the
initial filing date of the Form 20-F.



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# Part III

# Item 19. Exhibits

See
Exhibit Index.



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# SIGNATURES

The
registrant hereby certifies that it meets all the requirements for filing on Form 20-F and
has duly caused and authorized this Amendment No. 1 to the annual report to be signed on
its behalf by the undersigned.

|Date: June 30, 2008 |  | OPTIBASE LTD.By: /s/ Shlomo (Tom) Wyler
Shlomo (Tom) WylerPresident, Chief Executive Officer andExecutive Chairman of the Board of Directors
|------------------- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------



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# Exhibit Index

|ExhibitNumber |  | Description of Document
|------------- |  | -----------------------

|1.1 |  | Amended
and Restated Memorandum of Association of the Company (incorporated by reference to
                      Exhibit 3.1 to the Registrant's Report on Form 6-K dated February
15, 2002).
|--- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|1.2 |  | Amended
Articles of Association of the Company (incorporated by reference to Exhibit 3.2 to the
                      Registrant's  Registration Statement on Form S-8 (File no.
333-137644), filed with the Commission                       on September 28, 2006).
|--- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|4.1 |  | Agreement
between Optibase, Inc. and Artel Software Corp. dated September 28, 2005 (incorporated
                      by reference to Exhibit 4.(a)(2) to the Registrant's Annual Report
on Form 20-F for the fiscal                       year ended December 31, 2005, filed
with the Commission on April 12, 2006).
|--- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|4.2 |  | Agreement,
dated as of January 9, 2007, between the Company and Koor Corporate Venture Capital and
                      Koor Industries Ltd. (incorporated by reference to Exhibit 4.3 to
the Registrant's Annual Report                       on Form 20-F for the fiscal year
ended December 31, 2006, filed with the Commission on May 14,                       2007).
|--- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|4.3* |  | Agreement,
dated as of December 31, 2007,  between Optibase Ltd. and Pitango Venture Capital Fund
                      III (Israeli Investors) LP, Pitango Venture Capital Fund III
(Israeli Sub) LP, Pitango Venture                       Capital Fund III (Israeli Sub)
Non-Q LP, Pitango Parallel Investor Fund III (Israel) LP, Pitango
                      Principals Fund III (Israel) LP and Pitango Venture Capital Fund
III Trusts 2000 Ltd.
|---- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|4.4* |  | Agreement,
dated as of December 31, 2007, between Optibase Ltd. and Genesis  Partners II LDC and
                      Genesis Partners II (Israel) LP.
|---- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------

|4.5* |  | Agreement,
dated as of December 31, 2007,  between Optibase Ltd. and Vertex Israel II (C.I.) Fund,
                      L.P, Vertex Israel II (A) Fund, L.P, Vertex Israel II (B) Fund,
L.P, Vertex Israel II Discount                       Fund, L.P, Vertex Israel II (C.I.)
Executive Fund, L.P.
|---- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|4.6 |  | Agreement,
dated May 6, 2008, between Optibase Ltd. and Mr. Shlomo (Tom) Wyler (incorporated by
                      reference to Exhibit 99.4 to the Schedule 13D/A, filed with the
Commission on June 25, 2008).
|--- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|4.7 |  | Form
of Letter of Indemnity between Optibase Ltd. and its directors and officers (incorporated
by                       reference to Exhibit 99.3 to Registrant's Report on Form 6-K,
filed with the Commission on October                       5, 2005).
|--- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|4.8 |  | Form
of Letter of Indemnity between Optibase, Inc. and its directors and officers
(incorporated by                       reference to Exhibit 4.9 to the Registrant's
Annual Report on Form 20-F for the fiscal year ended                       December 31,
2002, filed with the Commission on June 30, 2006).
|--- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|4.9 |  | 1999
Israel Share Option Plan, as amended (incorporated by reference to exhibits filed with
the                       Registrant's Annual Report on Form 20-F for the fiscal year
ended December 31, 1999).
|--- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|4.10 |  | 1999
U.S. Share Option Plan, as amended (incorporated by reference to exhibits filed with the
                      Registrant's Annual Report on Form 20-F for the fiscal year ended
December 31, 1999).
|---- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|4.11 |  | 102
Plan (incorporated by reference to exhibits filed with the Registrant's Annual Report on
Form                       20-F for the fiscal year ended December 31, 1999).
|---- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|4.12 |  | Employee
Stock Purchase Plan (incorporated by reference to exhibits filed with the Registrant's
                      Annual Report on Form 20-F for the fiscal year ended December 31,
1999).
|---- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|4.13 |  | 2001
Non-statutory Share Option Plan as amended and Form Option Agreement (incorporated by
                      reference to Exhibit 10.5 to the Registrant's Annual Report on Form
20-F for the fiscal year ended                       December 31, 2000, and with respect
to an amendment, by reference to Exhibit 99.7 to the                       Registrant's
Report on Form 6-K, filed with the Commission on February 15, 2002).
|---- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|4.14 |  | 2003
Amendment to the 1999 Israel Share Option Plan (incorporated by reference to Exhibit
4.(c). 9                       to the Registrant's Annual Report on Form 20-F for the
fiscal year ended December 31, 2003, filed                       with the Commission on
May 17, 2004).
|---- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|4.15 |  | 2006
Israeli Incentive Compensation Plan (incorporated by reference to Exhibit 4.1 to the
                      Registrant's Registration Statement on From S-8 (File no.
333-137644), filed with the Commission                       on September 28, 2006).
|---- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|8.1 |  | List
of the subsidiaries of the Company (incorporated by reference to Exhibit 8.1 to the
                      Registrant's Annual Report on Form 20-F for the fiscal year ended
December 31, 2003, filed with                       the Commission on May 17, 2004).
|--- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



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|ExhibitNumber |  | Description of Document
|------------- |  | -----------------------

|11.1 |  | Code
of Business Conduct and Ethics (incorporated by reference to Exhibit 11 to the
Registrant's                       Annual Report on Form 20-F for the fiscal year ended
December 31, 2003, filed with the Commission                       on May 17, 2004).
|---- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|12.1* |  | Certification
by Chief Executive Officer pursuant to Rule 13a-14(a) or Rule 15d-14(a) of the
                      Securities Exchange Act of 1934, as adopted pursuant to Section 302
of the Sarbanes-Oxley Act of                       2002.
|----- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|12.2* |  | Certification
by Chief Financial Officer pursuant to Rule 13a-14(a) or Rule 15d-14(a) of the
                      Securities Exchange Act of 1934, as adopted pursuant to Section 302
of the Sarbanes-Oxley Act of                       2002.
|----- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|13.1* |  | Certification
by Chief Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
|----- |  | ---------------------------------------------------------------------------------------------------

|13.2* |  | Certification
by Principal Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of
                      2002.
|----- |  | -----------------------------------------------------------------------------------------------------------------------------

|15.1* |  | Consent
of Kost, Forer Gabbay & Kasierer, a member of Ernst & Young Global.
|----- |  | ---------------------------------------------------------------------------

|15.2** |  | Consent
of Brightman, Almagor Zohar & Co., Certified Public Accountants, a member Firm of
Deloitte                       Touche Tohmatsu.
|------ |  | -----------------------------------------------------------------------------------------------------------------------------------------

|15.3** |  | Consent
of Brightman, Almagor & Co., Certified Public Accountants, a member Firm of Deloitte
                      Touche Tohmatsu.
|------ |  | -----------------------------------------------------------------------------------------------------------------------------------

|* | Previously
filed with the original Form 20-F, filed with the Commission on June 27, 2008
|- | ----------------------------------------------------------------------------------------

|** | Filed
herewith.
|-- | ---------------



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