Arotech's IES Interactive Training Subsidiary Receives Over $800,000 in New Simulator Orders

Orders include first sales of simulator to the US Army

October 30, 2003 - Arotech Corporation (NasdaqNM: ARTX) announced today that its use-of-force training subsidiary, IES Interactive Training, Inc., has received purchase orders valued at over $800,000 for Range 3000 XP4 digital training simulators. The US Army’s Detrick Center for Training and Education Excellence at Fort Detrick, Maryland, will be the first Army base to use IES simulators.

A Range 3000 XP4 digital training simulators was ordered for use with the TASER® brand less-lethal energy weapon. IES is the exclusive approved provider of laser training weapons for TASER. Range 3000 simulators were also purchased for training at one of the nation’s nuclear power plants.

NASA/Security has purchased additional systems for training at the NASA Ames Research Center in California, and upgrades for the Johnson Space Center in Houston, Texas. Systems were also ordered by police departments, VA police departments and training centers nationwide.

“IES continues to show strong sales of simulators,” said Robert S. Ehrlich, Arotech’s Chairman, President and CEO. “The new Army order marks great new potential for sales growth.”

IES Interactive training is a wholly owned Arotech subsidiary. It has no relation to the Israeli I.E.S. Group, which reportedly filed suit against Arotech – a suit the Company believes has no merit.

About IES Interactive Training

IES Interactive Training, a wholly owned subsidiary of Arotech Corporation, is a manufacturer of interactive digital training solutions to corporations, government agencies, military and law enforcement professionals around the globe. By providing unique judgment-driven systems designed by an experienced team of professionals, IES sets the standard for interactive simulation training. Flagship products include the Range 3000 XP4, a multimedia simulator; the Range FDU, advanced firearm diagnostics unit; and the A2Z Classroom Trainer for interactive, real-time learning. For further information about IES, please visit the company’s Website at http://www.ies-usa.com.

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 Protective Industries, 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 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; the outcome of the claims made by the I.E.S. Group 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 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.