New York Fire Department Dedicates New Driving Simulation Complex Incorporating Simulators From Arotech’s FAAC Inc.

FDNY Simulators Funded by a 9-11 NASCAR Memorial Grant

August 6, 2004 - Arotech Corporation (NasdaqNM: ARTX) announced today that its simulation and training division has delivered driving simulators to the New York Fire Department. FDNY held a news conference on August 3 in support of the dedication of their new driving simulator complex at Randall's Island, NY. The event drew wide press coverage, including a New York City Fox (Channel 5) feature story on the FAAC simulators.

The FAAC simulators delivered to FDNY were funded via a grant from NASCAR, part of a memorial to 9-11. FAAC produced three simulators for FDNY - two fire truck simulators and an EMS simulator. FDNY is the first municipal fire and emergency medical response department in the country to use full-scale, motion based vehicle simulators to train fire and ambulance drivers.

According to Lieutenant Sean Flaherty, FDNY lead instructor, "The simulators are part of a total training, testing, and safety program. Accidents have been reduced by training and testing drivers in situations that cannot be safely duplicated on the streets".

FDNY instructors have become very proficient at developing fire-specific scenarios, according to FAAC President Al Jordan. “FDNY has developed a series of highly realistic fire response scenarios that can be utilized by other departments through our user group program as they purchase FAAC simulators.”

“We are very proud to have a relationship with FDNY, the nation's clear leader in applying technology to improve fire response,” said Robert S. Ehrlich, Arotech Chairman and CEO. “Our Simulation and Training group continues its leadership in homeland security and law enforcement training.”

About The Simulation and Training Division

The Arotech Simulation and Training Division includes FAAC Inc. and IES Interactive Training Inc.

FAAC Incorporated (www.faac.com) has been providing high fidelity training and simulation products to its military and commercial customer base for more than 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. More than 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.

IES Interactive Training (www.ies-usa.com), 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.

About Arotech Corporation

Arotech Corporation 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 armoring.

The Battery and Power Systems Division includes Electric Fuel Battery Corporation and Epsilor Electronic Industries Ltd. The Simulation, Training and Consulting Division includes IES Interactive Training, FAAC Incorporated and Arocon Security Consulting. The Armoring Division includes MDT Armor Corp., MDT Protective Industries Ltd. and Armour of America, Incorporated.

Arotech is incorporated in Delaware, with corporate offices in New York, and research, development and production subsidiaries in Alabama, Colorado, Michigan, California 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, 2003 and other filings with the Securities and Exchange Commission. Arotech assumes no obliga-tion to update the information in this release. Reference to the Company’s website above does not constitute in-corporation of any of the information thereon into this press release.