Arotech's Electric Fuel Subsidiary to Offer Backup Power for Emergency Use

Northeast Power Failure and Hurricane Isabel Show Great Demand for
Emergency Backup Power

September 22, 2003 - Arotech Corporation (NasdaqNM: ARTX) announced today that its zinc-air battery producer, Electric Fuel Battery Corporation, will soon be offering a battery-based power system for emergency backup power. These backup power systems will initially be targeted at emergency services and law enforcement units. Based on the Company's military BA-8180 zinc-air batteries, the new backup power system will be capable of delivering over 3 kWh of energy for operating electric equipment used by emergency services when regular power is interrupted.

Using a standard DC/AC converter, the Electric Fuel backup power system will be able to power TVs, communication equipment, computers, medical instruments as well as provide power to recharge two-way radios and portable devices. The need for such backup power was made clear during the August Northeast power outage and hurricane Isabel, when power was down for many days. Most UPS systems will not provide power for extended periods, and generators cannot be used in closed offices. Emitting no carbon monoxide or any other toxic gases, the Electric Fuel zinc-air backup power can safely be used in offices and enclosed, unventilated, areas.

The Electric Fuel backup power system will initially be offered to emergency services and law enforcement agencies and not to the general public. Arotech plans to use the extensive marketing network of Arotech's IES Interactive Training subsidiary, which sells simulators to law enforcement agencies.

“The recent power failure in the Northeast and power outage caused by hurricanes have clearly shown the need for backup power for the emergency and law enforcement markets,” said Robert S. Ehrlich, Arotech Chairman and CEO. “We will use our extensive zinc air technology to address the special needs of this market.”

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.