Arizona Law Enforcement Agencies Choose Arotech's Next Generation Simulation Training Systems; Orders Total $640,000.

LITTLETON, Colo. -- Arotech Corporation, (NasdaqNM: ARTX), announced today that the Arizona Peace Officer Standards and Training (Post) Board authorized funds for local agencies to purchase training simulators from its IES Interactive Training subsidiary. Arotech has since received purchase orders totaling $640,000 for its IES MILO(TM) Training and Presentation simulators from a variety of Arizona law enforcement agencies. All systems have been delivered to each agency, with training on the systems scheduled for completion by the end of October. Including these orders, Arotech's backlog was approximately $30 million at the end of August, 2005.

The Arizona Post Board, which is vested with the responsibility of administering the Peace Officer Training Fund, addresses the need for uniform peace officer selection, recruitment, retention and training standards, and provides curriculum and standards for all certified law enforcement and correctional training facilities within the state.

An open competition was held between the three major manufacturers of judgmental use-of-force training simulators identified as meeting the basic requirements outlined by the Board. Arotech's IES MILO Training and Presentation System was selected by nine of the ten agencies that were designated to purchase training simulators with assistance from the Board.

"In our agency, we have a wide variety of duties and responsibilities which include detention, warrants, patrol, S.W.A.T. and volunteers. MILO allows us to manufacture scenarios to suit specific specialty assignments using a variety of lethal and non-lethal weapons. We can even manufacture scenarios for specific locations such as an active shooter in a school or mall," explained Sergeant Mike Branham, Supervisor Firearms Training Section with the Maricopa County Sheriffs Department.

"This was not our first experience with a judgmental shooting simulator. We have had systems manufactured by one of the largest suppliers in use with our agency for over ten years. I think I speak for everyone on my staff in stating that MILO is superior in every aspect," Sgt. Branham said.

Regarding MILO's user-friendly operating system, Sgt. Branham added, "We have 71 instructors that have access to the system and simplicity in training was a big plus."

"MILO was developed with the future of interactive training in mind," said Robert S. Ehrlich, Arotech Chairman and CEO. "Today's announcement further validates our belief that MILO is the most advanced interactive training and teaching solution available to the nation's emergency and first responders."

MILO is an advanced suite of training products that incorporate use-of-force simulation, classroom training modules and presentation system technology to provide a total training solution for all public safety organizations. MILO surpasses standard interactive training simulators by incorporating the capability to offer teaching programs in addition to traditional test-only programs.

Arotech is a leading provider of advanced law enforcement simulation training solutions in Arizona. Customers include the Phoenix Police Academy, the Arizona Department of Public Safety, the Maricopa County Sheriffs Departments, the Arizona Game and Fish Department, Central Arizona Regional Law Officers Training Academy (CARLOTA), Lake Havasu City Police Department, Navajo County Sheriffs Department, Peoria Police Department, Prescott Police Department, Surprise Police Department and the Thatcher Police Department.

About Arotech's Simulation and Security Division

Arotech's Simulation and Security Division develops manufactures and markets advanced hi-tech multimedia and interactive digital solutions for use-of-force and driving training of military, law enforcement, security and private industry personnel. The division's fully interactive driver-training systems feature state-of-the-art vehicle simulator technology enabling training in situation awareness, risk analysis and decision making, emergency reaction and avoidance procedures, and conscientious equipment operation. Over 100,000 drivers have been trained on its installed base of 244 driving simulators. The division also provides pilot decision-making support software for the F-15, F-18, and JSF aircraft as well as simulation models for the ACMI/TACTS air combat training ranges. In addition, the division's use-of-force training products and services allow organizations to train their personnel in safe, productive and realistic environments.

Arotech's Simulation and Security Division consists of FAAC Incorporated and IES Interactive Training Inc.

About Arotech Corporation

Arotech Corporation is a leading provider of quality defense and security products for the military, law enforcement and homeland security markets, including multimedia interactive simulators/trainers, lightweight armoring and advanced zinc-air and lithium batteries and chargers. Arotech operates through three major business divisions: Armor, Simulation and Security and Battery and Power Systems.

Arotech is incorporated in Delaware, with corporate offices in Auburn, Alabama, and research, development and production subsidiaries in Alabama, Colorado, Michigan, California and Israel.

Except for the historical information herein, the matters discussed in this news release include forward-looking statements, as defined in the Private Securities Litigation Reform Act of 1995. Readers are cautioned not to place undue reliance on these forward-looking statements, as they are subject to various risks and uncertainties that may cause actual results to vary significantly. These risks and uncertainties include, but are not limited to, risks relating to: product and technology development; the uncertainty of the market for Arotech's products; changing economic conditions; delay, cancellation or non-renewal, in whole or in part, of contracts or of purchase orders; and other risk factors detailed in Arotech's most recent Annual Report on Form 10-K for the fiscal year ended December 31, 2004, as amended, and other filings with the Securities and Exchange Commission. Arotech assumes no obligation to update the information in this release. Reference to the Company's website above does not constitute incorporation of any of the information thereon into this press release.