New Arotech Subsidiary FAAC Inc Gets First Order for New Training Simulator from Detroit Metropolitan Airport

$800,000 Airport Order Includes "PIRFECT(TM)" First Responder Training Simulator and Firefighter Simulators Upgrades

February 2, 2004 - Arotech Corporation (NasdaqNM: ARTX) announced today that its newly acquired FAAC subsidiary has received its first order for PIRFECT(TM) - a new training tool for first responders. The Detroit Metropolitan Airport will be the first to use FAAC's new product for the emergency response market, part of an $800,000 order that also includes airport familiarization tools and Airport Rescue Fire Fighting (ARFF) simulator upgrades.

FAAC intends to market PIRFECT working together with Arotech's IES Interactive Training subsidiary, which sells training tools to the emergency and law enforcement markets.

PIRFECT provides situational awareness training, judgment training, team coordination training, and post-incident review and analysis for emergency responders concerned with the management and command of an incident. Incidents ranging from small, localized fires to large scale, mass casualty events requiring coordinated multiple agency response can be simulated. PIRFECT systems are capable of operating in fixed and mobile configurations, both supporting local and distance networking. PIRFECT comes complete with training scenarios for fire, EMS, police and airport-focused training.

The system's design allows for extension to other scenarios such as hostage situations, attacks using weapons of mass destruction, and acts of bio-terrorism. A scenario-authoring tool allows the Buyer to create new scenarios including the creation of different street configurations and new buildings using digital photos.

"One of the exciting attributes of PIRFECT is that it can be networked with FAAC's driving simulators as well as with the IES Range 3000 firearms simulator. The entire response team can train as a unit, under the direction of the Incident Commander. This allows FAAC is expand our offerings to a wide variety of first responder agencies," noted Alan Jordan, President and CEO of FAAC.

"This product clearly is responsive to the market's need to train police, fire and emergency services to control a crisis situation quickly and efficiently. It also demonstrates the synergies that can be exploited between our two simulation training units," said Robert S. Ehrlich, Arotech Chairman and CEO. "The IES sales and marketing team's blue chip customer list is an ideal resource for marketing this innovative new simulation product."

About FAAC

FAAC Incorporated has been providing high fidelity training and simulation products to it's military and commercial customer base for over 30 years. FAAC supplies driving simulators for training operators of automobiles, trucks, police/fire/EMS vehicles, bus drivers, light rail operators, and airport ground vehicles. Over 80,000 drivers have been trained on FAAC's installed base of 173 driving simulators. FAAC also provides pilot decision-making support software for the F-15, F-18, and JSF aircraft as well as simulation models for the ACMI/TACTS air combat training ranges.

About Arotech Corporation

Arotech Corporation (www.arotech.com) provides quality defense and security products for the military, law enforcement and homeland security markets, including advanced zinc-air and lithium batteries and chargers, multimedia interactive simulators/trainers and lightweight vehicle armoring.

The Battery and Power Systems Division includes Electric Fuel Battery Corporation (www.electric-fuel.com) and Epsilor Electronic Industries (www.epsilor.com). The Simulation, Training and Consulting Division includes IES Interactive Training (www.ies-interactive.com), FAAC Incorporated (www.faac.com) and Arocon Security Consulting (www.arocon-security.com). The Armored Vehicle Division includes MDT Armor Corp. (www.mdt-armor.com) and MDT Protective Industries Ltd. (www.mdtisrael.com).

Arotech is incorporated in Delaware, with corporate offices in New York, and research, development and production subsidiaries in Alabama, Colorado, Michigan 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; 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 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.