Arotech's Battery Division Launches Forward Field Charger That Provides Energy Independence For The Foot Soldier

Will be introduced at 41st Power Sources Conference, June 14-17, 2004

June 8, 2004 - Arotech Corporation (NasdaqNM: ARTX) announced today that its Battery and Power Systems Division will introduce its new Forward Field Charger at the 41st Power Sources Conference in Philadelphia, PA, on June 14. The Forward Field Charger provides total energy independence for the dismounted soldier by allowing him to use multiple sources for charging his batteries.

The lightweight and compact Forward Field Charger is the result of a synergistic effort of the two units of the Battery and Power Systems Division - Electric Fuel and Epsilor Electronics, each contributing its state of the art technology into one product.

The Forward Field Charger is an enabling technology for the new strategy of the US Army, designed to increase the use of rechargeable batteries. Charging solutions are an integral part of the program, and the new Charger enables charging from a number of sources. The Forward Field Charger uses the Electric Fuel BA 8180 Zinc Air battery as a source of energy for field charging of military rechargeable batteries. Other sources include solar panels, 24-volt vehicle batteries and 110/220 AC. All sources can be used with one compact charger.

The Company will present two papers at the upcoming 41st Power Sources Conference, both co-authored with Dr. Terrill Atwater, Leader, Material Science Team, US Army Communications-Electronics Command (CECOM). The conference is sponsored by CECOM, the U.S. Army Research, Development & Engineering Command, Power Sources Center of Excellence, Sensors and Electronic Devices Directorate, and the Army Research Laboratory.

"The Forward Field Charger is the necessary link for full implementation of the rechargeable battery in the military," said Robert S. Ehrlich, Arotech Chairman and CEO. "It also opens a host of new military applications for our BA-8180 zinc-air battery."

About the Battery and Power Systems Division

Arotech's Battery and Power Systems Division specializes in the design and manufacture of primary and rechargeable batteries, related electronic circuits and associated chargers for military applications. The company's products are to government agencies, the military and large original equipment manufacturers. The Electric Fuel and Epsilor Electronics technical teams have state of the art expertise in the fields of electrochemistry, electronics, software and battery design, production, packaging and testing. With approximately 150 employees, 30 of them engineers, the division operates three facilities in Alabama and in Israel.

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 vehicle armoring.

The Battery and Power Systems Division includes Electric Fuel Battery Corporation and Epsilor Electronic Industries. The Simulation, Training and Consulting Division includes IES Interactive Training and FAAC Incorporated. The Armored Vehicle Division includes MDT Armor Corporation and MDT Protective Industries Ltd.

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, 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.