Arotech Warrant Issuance Receives Overwhelming Approval From Stockholders.

NEW YORK -- Arotech Corporation (NasdaqNM: ARTX) announced today that a special stockholders meeting that was held this morning , approved a proposal to ratify, for purposes of NASD Marketplace Rule 4350(i)(1)(C)(ii), the issuance in July 2004 of five-year warrants to purchase up to 8,717,265 shares of Arotech's common stock.

The resolution ratifying the warrant issuance received the support of approximately 78% of the votes cast in person and by proxy on the proposal.

"We greatly appreciate that our growth objectives have received this strong show of support from our stockholders," said Robert S. Ehrlich, Chairman and CEO of Arotech. "We have taken a series of successful strategic steps over the past few years, including the acquisition of several excellent companies, to transform Arotech into a major vendor of security and defense equipment. It is gratifying to see the extent to which our shareholders support these steps."

About Arotech Corporation

Arotech Corporation provides quality defense and security products for the military, law enforcement and homeland security markets, including advanced zinc-air and lithium batteries and chargers, multimedia interactive simulators/trainers and lightweight armoring.

The Battery and Power Systems Division includes Electric Fuel Battery Corporation and Epsilor Electronic Industries Ltd. The Simulation and Training Division includes IES Interactive Training and FAAC Incorporated. The Armoring Division includes MDT Armor Corp., MDT Protective Industries Ltd. and Armour of America, Incorporated.

Arotech is incorporated in Delaware, with corporate offices in New York, 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, 2003, 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.