Arotech Battery Passes Milestone Testing with
Dragon Eye Unmanned Drone

April 28, 2003 - Arotech Corporation (NasdaqNM: ARTX) announced today that a prototype zinc-air battery developed by its Electric Fuel subsidiary passed a milestone in testing a Marine Dragon Eye unmanned drone at Quantico Marine Corps Base, Virginia.
In ground testing, the battery, developed with partial funding from the US Army, showed it was capable of powering the UAV Dragon Eye. The Company believes its zinc air battery has the potential to greatly extend the mission duration of this reconnaissance aircraft.

Electric Fuel's Unmanned Aerial Vehicles (UAV) batteries are high-power, lightweight versions of its most advanced zinc-air cells, which have specific energy of 400 Wh/kg.

"The war in Iraq has clearly demonstrated the importance of UAV's" said Arotech Chairman and CEO Robert S. Ehrlich, "and I am pleased that we have passed another milestone in this important program. We continue to see many applications for our zinc air battery technology with the military. "

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 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 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.