Arotech Awarded New $1.6 Million US Army Battery Contract

CECOM Contract for Electric Fuel BA-8180/U Zinc-Air Batteries
Follows 2002 $2.5 Million Order

April 14, 2003 - Arotech Corporation (NasdaqNM: ARTX) announced today that a second contract has been entered into between its Electric Fuel battery manufacturing subsidiary and the US Army Communications Electronic Command (CECOM) pursuant to 10 U.S.C. ss. 2304c(2), "Unusual and Compelling Urgency," for delivery of advanced zinc-air batteries. The US Army has already shipped Electric Fuel BA-8180/U batteries from its first contract to US forces in Iraq and the Persian Gulf.
The contract calls for delivery of the BA-8180/U zinc-air non-rechargeable batteries following the delivery of batteries under the current contract from September through November 2003 with a current order ceiling of $1.6 million.

This contract was awarded only a few weeks after the Company made delivery to CECOM of the first zinc-air batteries under the first contract, awarded in November 2002. Recently, the Company successfully completed the rigorous tests 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 considerably safer in combat situations and more environmentally friendly than lithium batteries.

"Within a very short time we have gained acceptance of our products and now our manufacturing and quality have been confirmed," said Arotech Chairman and CEO Robert S. Ehrlich. "This order is further proof of our strategic shift to batteries for the military, and a very good sign for the future."

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, in whole or in part, of contracts or 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.