Veteran's Administration Police Deploys Simulation Training Solutions from Arotech's IES Interactive Training

VA Police selects Range 3000 XP4 digital training simulators to train and certify its officers to carry firearms in VA Medical Centers across the nation

May 27, 2003 - Arotech Corporation (NasdaqNM:ARTX) announced today that its "use-of-force" training subsidiary, IES Interactive Training, Inc., has equipped several of the Veteran's Administration (VA) Police training centers with Range 3000 XP4 digital training simulators. In addition, three more VA training centers are expected to purchase simulator systems in the near future.

Current VA policy mandates simulation training to be part of the total training VA Police receive before they are authorized to carry firearms. The VA set January 1, 2004 as the deadline for all VA Police to be equipped to carry firearms. VA Police are responsible for security across 167 VA Medical Centers (VAMC) around the nation.

"We are pleased that the VA Police has picked the Range 3000 XP4 as its digital training simulator of choice," said Greg Otte, president of IES. "We will work closely with the VA Police to ensure that its digital training needs are met and surpassed."

With today's announcement, IES Interactive Training expects to have the Range 3000 XP4 digital training simulator deployed in six VA training centers across the nation, including two at VA Police headquarters in Littlerock, Ark. Digital training simulators deployed by IES Interactive Training to VA Police centers across the nation now total nine.

The Range 3000 XP4 is a Microsoft Windows® XP-based training system that duplicates potential scenarios encountered by law enforcement, government officers and security personnel. Each scenario can branch infinitely depending on the reactions of the trainee; moreover, the Range 3000 XP4 is designed to improve judgment as well as accuracy.

The system comes equipped with more than 100 videotaped scenarios and allows organizations to tape and edit their own scenarios in as little as a few hours, customizing the training program to meet changing security needs.

IES Interactive Training, (www.ies-interactive.com) is a world-leading manufacturer of hi-tech multimedia and interactive digital training solutions to corporations, government agencies and military and law enforcement professionals around the globe. Through the incorporation of a unique solution-driven philosophy and an experienced team of interdisciplinary professionals, IES has assumed a leadership role in delivering products that set the industry standard for interactive simulation training systems. Its focus is to develop and sell advanced multimedia training systems specifically targeted for law enforcement and firearms training.

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.