Former Time Warner CFO Joins Arotech's Board

Bert W. Wasserman Will Serve as a Director and Chairman of the Audit Committee

February 27, 2003 - Arotech Corporation (NasdaqNM: ARTX) announced today that Bert W. Wasserman is joining Arotech's Board of Directors as a Director and Chairman of the Audit Committee.

Arotech believes that Mr. Wasserman qualifies as an "audit committee financial expert" under new SEC and Nasdaq regulations.

Mr. Wasserman served as executive vice president and chief financial officer of Time Warner Inc. from 1990 until his retirement in 1995 and served on the Board of Directors of Time Warner, Inc., and its predecessor company, Warner Communications, Inc., from 1981 to 1995. He joined Warner Communications, Inc. in 1966 and had been an officer of that company since 1970. Mr. Wasserman is a director of several investment companies in the Dreyfus Family of Funds and is also a director of Lillian Vernon Corporation.

In welcoming Mr. Wasserman to the Board, Arotech Chairman and CEO Robert S. Ehrlich commented, "Bert joins us at a turning point for our Company. We are now focused and committed to the defense and security business and Bert's vast business and financial experience will be invaluable as we grow our newly renamed Company."

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.

About Arotech Corporation

Arotech Corporation (www.arotech.com) operates three business subsidiaries: Electric Fuel Batteries -- developing and manufacturing zinc-air batteries for military and homeland security applications; IES Interactive -- advanced high-tech multimedia training systems for law enforcement and paramilitary organizations; and MDT Armor -- vehicle armoring for the military, industrial and private sectors. Electric Fuel Batteries also continues to develop electric vehicle batteries for zero emission public transportation.

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 of purchase orders; significant future capital requirements; the Company's ability to quickly and smoothly execute the change in leadership as a result of its former CEO's resignation; and other risk factors detailed in Arotech's most recent Annual Report on Form 10-K for the fiscal year ended December 31, 2001, Arotech's most recent Quarterly Report on Form 10-Q, 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.