Arotech’s IES Interactive Training Subsidiary Receives $405,000 in Orders From California’s Highway Patrol and VA Police

Annual Shareholders Meeting Approves Name Change to Arotech Corporation

September 18, 2003 - Arotech Corporation (NasdaqNM: ARTX) announced today that its use-of-force training subsidiary, IES Interactive Training, Inc., has received purchase orders to supply the California Highway Patrol with multiple Range 3000 XP4 digital training simulators. In addition, two more Veteran’s Administration Medical Center (VAMC) Police agencies have purchased Range 3000 XP4 systems. The value of the purchase orders is more than $400,000. Delivery of all systems will conclude by mid-November.

The California Highway Patrol (CHP), one of the nation’s largest and most recognized statewide law enforcement agencies, is respected worldwide for its high standards and professionalism. IES’s Range 3000 XP4 digital training simulators will be used by the CHP in both its headquarters and training facilities across the state to provide current officers, as well as new recruits, with the latest interactive digital training to sharpen their judgment and decision-making skills.

The VAMC Police in Miami, FL and East Orange, NJ, join 9 other VAMC Police already using IES’s Range 3000 XP4 digital training simulator. VAMC policy mandates that simulation training be part of the total training VAMC Police receive before they are authorized to carry firearms. VAMC Police are responsible for security in VA Medical Centers across the nation.

“The CHP and VAMC purchase orders continue to confirm our belief that the Range 3000 XP4 is the most advanced digital training simulator available to the law enforcement community,” said Greg Otte, president of IES Interactive Training. “We are pleased to have both agencies join the growing list of organizations that have adopted the Range 3000 XP4 as their interactive digital training solution of choice.”

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

In an unrelated matter, the Company also announced that its annual meeting of shareholders, held in New York on September 15, had approved the name change announced earlier this year from Electric Fuel Corporation to Arotech Corporation, and that the Company had filed the appropriate documents with the Delaware Secretary of State to effect the name change. The name Electric Fuel will now be dedicated to the battery production company – Electric Fuel Battery Corporation.

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, 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 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