New CFX Automatic Life Vest Light from Arotech's Electric Fuel Passes Performance Tests

New Light Designed for Cruise and Ferry Markets

December 4, 2003 - Arotech Corporation (NasdaqNM: ARTX) announced today that its Electric Fuel battery subsidiary has successfully completed the necessary conformity tests for a new automatic life vest light. These tests are required by marine SOLAS (Safety Of Life At Sea) regulations, and lights cannot be sold without them. The CFX light, which operates automatically when immersed in fresh or salt water, was designed for use in ferries and cruise ships.

The CFX uses small lithium batteries similar to those used in standard cameras. The unique lightweight 2-piece design - battery with a tethered light - makes the CFX the light with smallest profile on the market, an important feature for ships where evacuation may take place in narrow chutes.

The CFX is the latest addition to the line of life vest lights sold since 1996. To date, Electric Fuel has sold over a million life vest lights into the marine and aviation markets. The new CFX light supplements the popular marine SOLAS MX8 light currently produced by Electric Fuel, a light where activation takes place after removal of a plug and the immersion of the battery in fresh or salt water.

"Till now we had limited access to the cruise and ferry markets, as they require a fully automatic light" said Robert S. Ehrlich, Arotech's Chairman, President and CEO. "Our new CFX should enable us to increase sales of our safety lights division."

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, MDT Armor, which provides vehicle armoring for the military, industrial and private sectors, and Arocon Security, which provides homeland security consulting and other services.

Arotech is incorporated in Delaware and has corporate and sales offices in New York and Denver with research, development and production subsidiaries in Alabama, Colorado 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; significant future capital requirements; the outcome of the claims made by the I.E.S. Group; 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 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.