Arotech’s IES Interactive Training Subsidiary Acquires
Bristlecone Training Products

Receives First $250,000 order for FDU firearm diagnostics unit based on
Bristlecone’s Heads Up Display

October 7, 2003 - Arotech Corporation (NasdaqNM: ARTX) announced today that its use-of-force training subsidiary, IES Interactive Training, Inc., has purchased selected assets of Bristlecone Corporation, including the name "Bristlecone Training Products” and the patents for the Heads Up Display (HUD) and a remote trigger device, for under $500,000 in cash and notes.

The acquired patents are used in the Company’s Range FDU (firearm diagnostics unit), a unique combination of training and interactive technologies that give instructors a first-person perspective of what trainees are seeing and doing when firing a weapon.

The Company also announced that it has received its first order for the FDU – a $250,000 order from a major federal law enforcement agency, Office of Inspector General (OIG)". IES plans to supply the FDU’s together with the Range 3000 systems purchased by the OIG, all of which are expected to be fully installed by the end of 2003.

“The purchase of the technologies and patents of Bristlecone brings us cutting edge technologies that will help IES in future developments”, said Robert S. Ehrlich, Arotech’s Chairman, President and CEO. “I am glad to see IES continue to expand its range of simulation, training and diagnostic products.”

About IES Interactive Training

IES Interactive Training, a wholly owned subsidiary of Arotech Corporation, 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 Range FDU, advanced firearm diagnostics unit; and the A2Z Classroom Trainer for interactive, real-time learning. For further information about IES, please visit the company’s Website at http://www.ies-usa.com.

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 Protective Industries, which provides vehicle armoring for the military, industrial and private sectors, and Arcon 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; and other risk factors detailed in Arotech’s most recent Annual Report on Form 10-K for the fiscal year ended December 31, 2002, as amended, and other filings with the Securities and Exchange Commission. Arotech assumes no obligation to update the information in this release. Reference to Arotech’s website above does not constitute incorporation of any of the information thereon into this press release.

COMPANY CONTACT:
Jonathan Whartman
Senior VP, Communications
1-800-281-0356 ext 622
whartman@arotech.com

For IES Interactive Training
Socket Media, Inc.
Robert Karpman or Jonathan Rodgers
310-829-0586 or 310-829-0520
r.karpman@socketmedia.com or j.rodgers@socketmedia.com