Arotech Awarded Mobile Simulator Contracts Valued Over $2.7 Million; Contracts Include Sale of New Incident Command Training Simulator.

AUBURN, Ala. -- Arotech Corporation (NasdaqNM: ARTX) announced today that its Simulation and Security Division, through its FAAC subsidiary, has recently received contract awards totaling over $2.7 million.

Under the new contracts, Arotech's FAAC subsidiary will deliver a variety of mobile simulation solutions across its entire product portfolio, including F-15 flight software programs, foreign military sales, military driving simulators and transit driving simulators. In addition, Arotech was awarded a contract from a major U.S. fire department for its new Incident Command Training (ICT) simulator, a cutting-edge product for the training of first responders.

"The new contracts demonstrate our capability to provide high-quality solutions that best meet the complex requirements of a diverse customer base. This unique capability is further substantiated by the order that was just received for our new Incident Command Training (ICT) simulator," said FAAC CEO, Al Jordan. "Our recent focus on Incident Command training opens up numerous possibilities and we look forward to leveraging our vast experience in simulation training to provide comprehensive training solutions for this rapidly-growing first responder market."

"The continued strong demand for our training simulators, reflected by these recent contracts, further enhances our position as a leading provider of simulation solutions and proves our ability to tackle the intricate requirements of new applications such as incident command training," said Robert S. Ehrlich, Arotech's Chairman and CEO.

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.