Leon S. Gross Resigns from Arotech's Board of Directors

Board and Management Team Appreciates Years of Commitment and Support and Understands that Active Participation at Age 97 has Become too Difficult

April 1, 2003 - Arotech Corporation (NasdaqNM: ARTX) announced today that Mr. Leon S. Gross has decided to resign from Arotech's Board of Directors. Mr. Gross joined the Board in March 1997.
Arotech Chairman and CEO Robert S. Ehrlich regretfully accepted Mr. Gross's decision to resign from the Board and expressed his understanding that "at your honored age of 97, it has become too difficult to participate actively."

In his letter of resignation, Mr. Gross noted his "enthusiasm for the Company and the exciting new direction we are taking," and stated that he still considered himself "as a long-term investor."

In a letter to Mr. Gross accepting his resignation, Mr. Ehrlich added: "The Board and management sincerely appreciate your commitment to and support of the Company. We appreciate your strong endorsement of our program to move the Company to a defense and security company that we hope will complete its first-ever cash-flow positive quarter before the end of this year. For all of us, it has truly been our pleasure to be associated with you."

About Arotech Corporation

Arotech's corporate mission is to provide quality defense and security products for the military, law enforcement and homeland security markets, including advanced zinc-air batteries, multimedia interactive simulators/trainers and lightweight armoring.

Arotech Corporation (www.arotech.com) operates two business divisions: Electric Fuel Batteries -- developing and manufacturing zinc-air batteries for military and homeland security applications and developing electric vehicle batteries for zero emission public transportation; and Arotech Defense -- consisting of IES Interactive, which provides advanced high-tech multimedia training systems for law enforcement and paramilitary organizations, and MDT Armor, which provides vehicle armoring for the military, industrial and private sectors.

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 of purchase orders; significant future capital requirements; and other risk factors detailed in Arotech's most recent Annual Report on Form 10-K for the fiscal year ended December 31, 2002 and other filings (under the name Electric Fuel Corporation) 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.