Arotech Simulation and Training Division Announces $4.9M in Orders.

ANN ARBOR, Mich. -- Arotech Corporation (NasdaqNM: ARTX) announced today that its Simulation and Training Division, through its FAAC subsidiary, has experienced continued successes in each of its main business areas totaling over $4.9M in recent orders. This recent activity is highlighted by the following:

--The recently relocated IES division has experienced continuity in operations and successfully began shipping product from Ann Arbor. In May, fourteen use of force systems were shipped to nine different customers. This milestone is in combination with recent awards totaling over $1.47M for thirty-four systems from eight customers.

--Continued support of FAAC's weapon simulation software was evidenced with over $1.56M of awards, exemplified by continuing efforts associated with our weapon employment zone algorithms on-board the F-15 and support of a foreign delivery version of the F-16.

--FAAC received over $1.89M in awards for driving simulators including successes resulting from our recent focus on the public safety sector. FAAC received fire-related driving simulator orders from three agencies and an extension of our fire Incident Command Product to include weapons of mass destruction elements.

"The simulation and training division remains strong and well positioned for continued success," said Steven Esses, Arotech President and Chief Operating Officer. "We are especially excited to begin to see the positive results of relocating IES to Ann Arbor, not only in terms of cost savings but the product enhancements and capabilities we are able to offer our customer base through consolidated operations."

About Arotech's Simulation and Training Division

Arotech's Simulation and Training Division develops, manufactures, and markets advanced high-tech multimedia and interactive digital solutions for use-of-force and driver training of military, law enforcement, security, municipal 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. In addition, the division's use-of-force training products and services allow organizations to train their personnel in safe, productive, and realistic environments. The division also provides pilot decision-making support software for the F-15, F-16, F-18, and JSF aircraft, as well as simulation models for the ACMI/TACTS air combat training ranges.

Arotech's Simulation and Training 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 Training and Battery and Power Systems.

Arotech is incorporated in Delaware, with corporate offices in Ann Arbor, Michigan, 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.