Arotech's Simulation and Security Division Receives Over $1.8 Million in New Orders.

AUBURN, Ala. -- Arotech Corporation (NasdaqNM: ARTX) announced today that its Simulation and Security Division, through its FAAC and IES subsidiaries, has received new orders totaling over $1.8 million for combat operations, driving and use-of-force simulator training equipment.

The new orders include awards received by Arotech's FAAC subsidiary, to supply air combat training software to the US Navy and to Boeing. Under the new orders, FAAC will deliver on-board pilot decision making and combat training software for F-15 fighter aircraft and other combat training applications. FAAC additionally received new orders for its driving training simulators from a variety of customers across the U.S.

Arotech's IES subsidiary has also received additional orders from a major police training organization, to supply its Range 3000 XP4 use-of-force training simulators. The Range 3000 XP4 allows officers and trainees to encounter realistic, real-world scenarios in a safe, controlled environment. The simulators gauge and analyze both judgment and accuracy.

"The new orders reflect the high quality and versatility of our simulation and training products that meet the requirements of a large and diverse customer base," said Robert S. Ehrlich, Chairman, President and CEO of Arotech. "The division's expertise in this field has enabled its customers to train their personnel in safe, productive and realistic environments."

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 220 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 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.