Arotech Simulation and Training Division Receives $6 Million in New Simulator Orders

Orders include follow on order for law enforcement simulators from German Police

October 6, 2004 - Arotech Corporation (NasdaqNM: ARTX) announced today that its simulation and training division has recently received new contracts for simulators from multiple sources totaling more than $6 million.

The orders include a follow on order for IES law enforcement simulators from the largest regional division of the German Police. IES received the original order from Germany in the beginning of 2003.

Arotech’s FAAC subsidiary received orders from multiple customers for 14 simulators, and is now under contract for production of 60 driving simulators to 11 different customers.

“We plan to ship and install over $7.5 million of our current backlog before the end of the year” said Al Jordan, FAAC President. “The current orders represent a real cross section of our driving simulator customer base – military, transit, trucking, police, and airport.”

“Both units in our simulation and training division continue their leadership position in the military and law enforcement markets,” said Robert S. Ehrlich, Arotech Chairman and CEO. “Sales of our interactive training simulators continue to grow rapidly.”

About The Simulation and Training Division

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

FAAC Incorporated has been providing high fidelity training and simulation products to its 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, rail operators, and airport ground vehicles. Over 90,000 drivers have been trained on FAAC's installed base of 185 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, 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 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.