Arotech Receives $700,000 Follow-on Order for New Light Weight Battery.

AUBURN, Ala. -- Arotech Corporation (NasdaqNM:ARTX) announced today the receipt of an order valued over $700,000 from the U.S. Army's Communications and Electronic Command (CECOM). The order for the BA-8140/U zinc-air battery along with adapters for the Javelin guided missile launcher, the M22 ACADA chemical detector and the SatCom radio, all belonging to Arotech's Electric Fuel subsidiary, follows the successful introduction of the new lightweight battery by the Army through a recently received initial order. The new battery will be used by the Army to power MBITR radios and other 12V applications.

"This second substantial order for these recently-released products is further indication of the growing acceptance of Zinc-Air as a portable energy solution of choice with our Warfighters," said Graydon Hansen, President and General Manager of Arotech's Electric Fuel Battery Corporation subsidiary.

Arotech is the sole supplier of zinc-air batteries to the U.S. Army and has delivered tens of thousands of its BA-8180/U zinc-air batteries to date. The new Electric Fuel BA-8140/U zinc-air battery is a 12 Volt, 400 Watt-hour, non-rechargeable battery pack, approximately half the size and weight of the BA-8180/U. The BA-8140/U battery complements the existing BA-8180/U battery, each serving different applications. Both batteries serve as mission extenders by having a higher energy density.

"This follow-on order was received within a short time after the initial order for our new lightweight batteries, reinforcing our leadership in zinc-air technology," said Robert S. Ehrlich, Chairman and CEO of Arotech. "We are committed to continuing to serve the Army with a safe and cost-effective technology that enhances the soldiers' extended mission capabilities."

Zinc-air batteries are considerably safer in combat situations, lighter for extended missions, more economical and more environmentally friendly than lithium batteries.

Arotech's Battery and Power Systems Division is a leading provider of zinc-air and rechargeable batteries and chargers for defense and security products and other military applications. Arotech develops and produces high power zinc-air batteries and is believed to be the sole supplier of this technology to the US military. In addition, Arotech develops high-end primary and secondary batteries and associated chargers and has vast experience in working with government agencies, the military and large corporations. The division also pioneers advancements in zinc-air technology for electric vehicles.

The Battery and Power Systems Division consists of Electric Fuel Battery Corporation, Electric Fuel Ltd., and Epsilor Electronic Industries Ltd.

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, including the results of our restructuring program. Forward-looking statements reflect management's current knowledge, assumptions, judgment and expectations regarding future performance or events. Although management believes that the expectations reflected in such statements are reasonable, 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 materially. 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; Arotech's ability to remain listed on the Nasdaq Stock Market in accordance with the Nasdaq's $1.00 minimum bid price and other continued listing standards; dilution resulting from issuances of Arotech's common stock upon conversion or payment of its outstanding convertible debt, which would be increasingly dilutive if and to the extent that the market price of Arotech's stock decreases; 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.