Arotech Zinc Air Batteries Shipped to War in Iraq

US Army Delivers First Electric Fuel BA-8180/U Zinc-Air Batteries to its forces in the Gulf

April 9, 2003 - Arotech Corporation (NasdaqNM: ARTX) announced today that the US Army has shipped batteries produced and just delivered by its Electric Fuel Battery Subsidiary to forces in the Persian Gulf. These batteries are part of the first shipment of BA-8180/U batteries delivered to the US Army’s Communications and Electronics Command (CECOM) under a $2.5 million order.

Delivery of the first 1,500 Zinc-Air batteries was made possible by the Company’s successful completion of the rigorous Initial Production Testing required by CECOM.

The BA-8180/U is a 12/24 Volt, 800 Watt-hour non-rechargeable battery pack, approximately the size and weight of a notebook computer. The battery is based on the new generation of lightweight, 30 ampere-hours cells developed by Electric Fuel over the last 5 years with partial funding by CECOM. In extensive field-testing, the BA-8180/U battery typically provided 4 to 6 times the run time of a BA-5590, a primary lithium battery pack widely used in the military. Zinc-air batteries are also safer and more environmentally friendly than lithium batteries.

Besides the BA-8180/U battery, Electric Fuel also supplies to CECOM three types of electrical interface adapters, including equipment-specific adapters for the AN/PRC-119 SINCGARS and SINCGARS ASIP tactical radio sets, and a generic interface for items of equipment that were designed to interface with a BA-5590 or equivalent battery.

“We are proud, at this special time, to support the US Army with safe power that extends missions,” said Arotech Chairman and CEO Robert S. Ehrlich. “In passing the US Army’s acceptance tests, we have established our battery production capabilities and quality, and shipping them to war confirms Electric Fuel’s move to a defense-oriented battery manufacturer.”

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.

Arotech is incorporated in Delaware under the name “Electric Fuel Corporation” 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 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.