Arotech Subsidiary IES Interactive Training Receives $1 Million Order From US Department of Health and Human Services

HHS to equip its Office of Investigations with Range 3000 XP4 digital training simulators

September 15, 2003 - Arotech Corporation (NasdaqNM: ARTX) announced today that its use-of-force training subsidiary, IES Interactive Training, Inc., has received a contract extension order for more than $1,000,000 from the United States Department of Health and Human Services (HHS) for portable Range 3000 XP4 digital training simulators and a Range 3000 XP4 digital editing station. IES expects to have all of the systems fully installed across HHS’s Office of Investigations division by the end of 2003.

The Office of Investigations (OI) is a part of the HHS Office of Inspector General, employing more than 400 special agents nationwide. OI is responsible for investigating a variety of crimes committed against more than 300 HHS Departmental programs. Special agents investigate Medicare/Medicaid fraud, child support enforcement matters, internal investigations, and grant and contract fraud. In addition, special agents ensure the protection and safety of the Secretary of HHS.

OI plans to deploy the portable Range 3000 XP4 digital training simulators in its headquarters in Washington, DC, in its main training facility--the Federal Law Enforcement Training Center (FLETC)--in Georgia, and in each of its regional offices across the nation. OI will also install a Range 3000 XP4 digital editing station in its headquarters, enabling its firearms trainers to create custom training sessions based on current department policy and procedures.

“The Office of Investigations understands that it takes the most advanced training methods and technology available to enable its special agents to properly respond to real-world threats and scenarios,” said Greg Otte, president of IES Interactive Training. “We believe the Range 3000 XP4 will provide OI’s firearms trainers with cutting-edge technologies to help accomplish that mission.”

The Range 3000 XP4 is used by numerous Federal law enforcement agencies throughout the United States, including the FBI, NASA/Security, the Transportation Security Administration (TSA) and the United States Border Patrol.

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 Armor, 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 under the name “Electric Fuel Corporation” and has corporate and sales offices in New York, Washington 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.

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