Arotech’s IES Interactive Training Subsidiary Receives Simulator Orders from US Customs, Federal Protective Service

IES Interactive to participate at Milipol 2003 in Paris next week

November 12, 2003 - Arotech Corporation (NasdaqNM: ARTX) announced today that its use-of-force training subsidiary, IES Interactive Training, Inc., has received purchase orders for its Range 3000 XP4 digital training simulators from the US Customs Service and from the US Federal Protective Service. With these orders, IES’s backlog totals more than $1 million.

IES Interactive will exhibit at Milipol 2003, the worldwide exhibition of internal state security, Paris, France, November 18-21. IES will exhibit the Range 3000 XP4 digital training simulator and the 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. Arotech will present the BA-8180/U zinc air battery together with IES, in booth C-155, at the Le Bourget Parc Des Expositions, Paris.

The US Custom Service and the US Federal Protective Service Police Academy are long time users of IES simulators. The new orders are for expansion of their training capacity and for new sites.

The US Federal Protective Service is charged with providing the vast federal communities controlled by GSA nationally with the necessary levels of protection to safeguard their tenant federal agencies, their people, including one million federal employees and over three million visitors daily, and the billions of dollars in U.S. assets housed there.

“Continued purchases by these major federal agencies in the US is very important to us,” said Robert S. Ehrlich, Arotech’s Chairman, President and CEO. “We are now going to the Milipol show in Paris with our cutting-edge technology to expand our international reach.”

About IES Interactive

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; 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, as amended, 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.

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