FBI National Academy Purchases Arotech IES Simulator

Will use Portable Range 3000 XP4 digital simulator for special agents,
law enforcement officers

July 14, 2003 - Arotech Corporation (NasdaqNM: ARTX) "use-of-force" training subsidiary, IES Interactive Training, Inc. announced today that the FBI has purchased a portable version of the Range 3000 XP4 digital training simulator for use at the live fire range at the FBI National Academy in Quantico, Va., in both indoor and outdoor environments. The FBI has also expressed interest in purchasing additional Range 3000 XP4 systems to increase its training capacity.

The Range 3000 XP4 is a use-of-force digital training simulator that will allow FBI special agents to encounter realistic, real-world scenarios in a safe, controlled environment. The simulator, which gauges and analyzes both judgment and accuracy, comes equipped with more than 100 videotaped scenarios. In addition, the FBI Firearms Training Unit will be able to tape and edit their own scenarios in as little as a few hours, customizing the training program to meet the FBI National Academy’s highest standards.

As part of the Range 3000 XP4 purchase, IES trainers will travel to the FBI National Academy in August to conduct a weeklong IES “Train the Trainer” course on the use of the system. Once FBI instructors are familiar with the Range 3000 XP4, the simulator will be used for training new and current special agents, as well as law enforcement officers from around the nation and the world.

“As the premier federal law enforcement agency in the nation, and quite possibly the world, the FBI’s use of our advanced high-tech Range 3000 XP4 is a ringing endorsement of IES's technology and the level of realism associated with our system.” said Greg Otte, president of IES Interactive Training. “We look forward to working closely with the FBI’s firearms instructors to ensure their training needs are not only met, but surpassed.”

The Range 3000 XP4 is used by a number of federal agencies in addition to the FBI, including NASA/Security, the Transportation Security Administration (TSA) and the United States Border Patrol.

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, 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 (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.