TSA Purchases 12 Interactive Training Simulators from Arotech.

Business Editors

NEW YORK--(BUSINESS WIRE)--May 19, 2004

Range 3000 XP4 digital simulators from Arotech's IES subsidiary

will be used in the TSA FFDO program to train commercial and cargo

pilots to respond to flight deck breaches and other security issues

Arotech Corporation (NasdaqNM: ARTX) announced today that its subsidiary, IES Interactive Training, has delivered 12 Range 3000 XP4 digital training simulators purchased by the U.S. Department of Homeland Security, Transportation Security Administration (TSA). The TSA is using IES simulators for its Federal Flight Deck Officer (FFDO) training program, based at the Federal Law Enforcement Training Center (FLETC) in Artesia, N.M.

The Range 3000 XP4 is a use-of-force digital training simulator that allows FFDO trainees to encounter realistic, real-world scenarios in a safe, controlled environment. The simulators, which gauge and analyze both judgment and accuracy, are equipped with FFDO-specific video scenarios. In addition, TSA trainers will be able to create and edit their own scenarios in as little as a few hours, ensuring that pilots going through the FFDO training program receive the latest scenario training, based on the highest standards set forth by TSA.

In addition to the TSA, the Range 3000 XP4 is used by a number of other federal agencies, including the United States Border Patrol, Coast Guard, FBI, NASA/Security, Secret Service and VAMC Police. Recently, the US Army's Aberdeen Proving Ground purchased a Range 3000 with an A2Z classroom system for $74,000.

"We are proud that the TSA has select the Range 3000 XP4 for use in the FFDO training program," said Robert S. Ehrlich, Chairman and CEO of Arotech. "We will continue to work closely with TSA to ensure the nation's pilots receive the highest level of training to help thwart future airline attacks."

About FFDO

The FFDO program was created as part of the Homeland Security Act to select, train, equip and supervise volunteer pilots to defend flight decks of passenger aircraft against acts of criminal violence or air piracy. After a prototype class in April 2003, TSA refined the training regimen and began continuous classes in July 2003. In December 2003, program eligibility was expanded to include pilots of all-cargo aircraft, flight engineers and navigators. A large number of pilots, who are deputized as Federal law enforcement officers, now contribute to aviation security throughout the U.S. on a daily basis.

About IES Interactive Training

IES Interactive Training, a wholly owned subsidiary of Arotech Corporation (Nasdaq: ARTX), is a manufacturer of interactive digital training solutions to corporations, government agencies, military and law enforcement professionals around the globe. By providing unique judgment-driven systems designed by an experienced team of professionals, IES sets the standard for interactive simulation training. Flagship products include the Range 3000 XP4, a multimedia simulator; the A2Z Classroom Trainer for interactive, real-time learning; and the Range FDU, firearm diagnostics unit. For further information about IES, please visit the company's Website at http://www.ies-usa.com.

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 vehicle armoring.

The Battery and Power Systems Division includes Electric Fuel Battery Corporation and Epsilor Electronic Industries. The Simulation, Training and Consulting Division includes IES Interactive Training, FAAC Incorporated and Arocon Security Consulting. The Armored Vehicle Division includes MDT Armor Corp and MDT Protective Industries Ltd.

Arotech is incorporated in Delaware, with corporate offices in New York, and research, development and production subsidiaries in Alabama, Colorado, Michigan 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 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.