Arotech’s IES Interactive Training Subsidiary Introduces Industry’s First Firearm Diagnostics Unit: The Range FDU

Groundbreaking technology gives instructors first-person perspective
of trainee actions during weapons training

August 28, 2003 - Arotech Corporation (NasdaqNM: ARTX) announced today that its “use-of-force” training subsidiary, IES Interactive Training, Inc., was introducing a groundbreaking new product: the Range FDU (firearm diagnostics unit), a unique combination of training and interactive technologies that give instructors a first-person perspective of what trainees are seeing and doing when firing a weapon. The Range FDU is the first and only firearm training technology of its kind.

With the Range FDU, firearms instructors can see the trainees’ actual sight alignment to the target as well as measure trigger pressure against proper trigger pressure graphs, making corrective instruction simple and effective. In addition, the Range FDU records a trainee’s recoil control, grip and stance — allowing the instructor to playback the information in slow motion or real time to better analyze the trainee’s actions and more accurately diagnose any deficiencies.

The Range FDU also has the ability to record the firearm instruction session to either DVD or VHS, allowing both the trainee and the instructor to review it at a later time. Trainees now have a diagnostic tool that they can learn from, even after their training has been completed. In addition, instructors can build a library for each trainee to record progress.

“IES developed the Range FDU in close collaboration with numerous law enforcement firearm trainers across the country,” said Greg Otte, president of IES. “Our goal was to provide law enforcement trainers with a needed diagnostic tool that allowed them to more accurately assess their firearm training procedures as well as review their trainees’ actions. The Range FDU equips firearm trainers with a technologically advanced solution that enables them to provide training based on proven techniques and procedures.”

The Range FDU is available now for advance purchase and will make its official premiere to the law enforcement community at the 110th annual IACP (International Association of Chiefs Of Police) conference and exposition on October 21-25 at the Philadelphia Convention Center.

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 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.