Arotech Armoring Subsidiary MDT Establishes US Operations and is
Awarded GSA Contract

New Armoring Facility Established in Auburn, Alabama

November 19, 2003 - Arotech Corporation (NasdaqNM: ARTX) announced today that its US based MDT Armor vehicle-armoring subsidiary has begun operations in a new facility in Auburn, Alabama, and that the US General Services Administration (GSA) has awarded a contract to MDT Armor for vehicle armoring. The 5-year contract establishes a pricing schedule for armoring of GM Suburban and Toyota Land Cruiser SUVs and of GM Savana/Express passenger vans. With this contract, these armored vehicles will be available for purchase directly by all federal agencies beginning December 1, 2003.

Established in 1949, the GSA, acting as a business manager and purchasing agent for the Federal Government, provides other federal agencies with more than $50 billion worth of office space, products and services per year. This award qualifies MDT Armor, a small business, to provide its range of battlefield proven armored vehicles to all agencies of the federal government.

The Armored GM Savana/Express is the first of its kind to offer level D protection for 8 passengers within the vehicle’s Gross Vehicle Weight, MDT Armor uses lightweight armoring materials and unique armoring technology to provide protection for passengers while ensuring vehicle performance and maintainability.

“We are proud to start our US armoring operations with a GSA contract,” said Robert S. Ehrlich, Arotech Chairman and CEO. “We will now be able to offer our battlefield proven armoring technology to a variety of government agencies requiring such protection.”

About MDT

MDT Armor and MDT Protective Industries, Arotech's vehicle armoring subsidiaries, are leaders in state-of the art, lightweight armoring of vehicles. MDT armors vehicles ranging from light tactical to passenger vehicles. MDT's vehicle armoring business has years of battlefield experience and has provided life-saving protection under the most extreme conditions, which include assault rifles and bomb blasts.

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 Arocon 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 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.