General Tommy Franks Thanks Arotech's Electric Fuel for
Supporting Iraq War Effort

"Your efforts in managing and supplying zinc-air batteries were seen as nothing less than spectacular"

July 21, 2003 - Arotech Corporation (NasdaqNM: ARTX) announced today that General Tommy Franks, Commander of the United States Central Command, has expressed his gratitude and appreciation to Electric Fuel's support of the war in Iraq in a July 3, 2003 letter.

In his letter, General Franks said: "On behalf of the men and women of the United States Central Command, I would like to personally extend my appreciation to you and your organization for the selfless service in support of our efforts in Operations ENDURING and IRAQI FREEDOM.

"Your efforts in managing and supplying zinc-air batteries were seen as nothing less than spectacular. The long hours, hard work, and personal sacrifices made in support of these operations have ensured our War Fighters had the necessary resources to successfully conduct their missions without interruption.

"Again, thank you for your support of our service members an our cause to bring peace and stability to the region."

The letter, together with a commemorative medal, was presented to Ron Putt, Electric Fuel's Director of Technology, during the Tri-Service Power Expo in Norfolk, Virginia. Electric Fuel has delivered its zinc-air BA-8180/U batteries to US Forces in the Persian Gulf under two contracts totaling $4.1 million with the US Army's Communications and Electronics Command (CECOM).

"We have always been proud to support our troops, and having General Franks acknowledge this contribution is very important to us," said Robert S. Ehrlich, Arotech Chairman and CEO. "We look forward to continue to do everything we can to support the US Armed Forces."

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.

Read General Franks' letter