Arotech Ships Record Number of Batteries To U.S. Forces in Iraq

May 23, 2003 - Arotech Corporation (NasdaqNM:ARTX) announced today that its Battery subsidiary, Electric Fuel Batteries, has shipped over 3,500 zinc-air BA-8180 zinc air batteries to US Forces the Persian Gulf since April 1st.

This record number of BA-8180/U batteries was delivered under the US Army's Communications and Electronics Command (CECOM) $4.1 million orders. The Auburn, Alabama factory almost tripled its capacity to meet US Army battery requirements.

"Demand for our batteries is strong," said Arotech Chairman and CEO Robert S. Ehrlich. "The business in moving forward on track and we still expect to be cash flow positive in the second half of the year."

The BA-8180/U is a 12/24 Volt, 800 Watt-hour, non-rechargeable battery pack; approximately the size and weight of a notebook computer. The battery is based on the new generation of lightweight, 30 ampere-hours cells developed by Electric Fuel over the last 5 years with partial funding by CECOM. In extensive field-testing, the BA-8180/U battery typically provided 4 to 6 times the run time of a BA-5590, a primary lithium battery pack widely used in the military.

Zinc-air batteries are considerably safer in combat situations and more environmentally friendly than lithium batteries.

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.