Arotech's Simulation Division to Launch "Milo" - A New Interactive Training Simulator - At the 2004 ICAP Conference in Los Angeles

Arotech will announce Q3 results Tuesday, November 9

Nov. 8, 2004 - Arotech Corporation (NasdaqNM: ARTX) announced today that its IES Interactive Training subsidiary will launch the Milo (Multiple Interactive Learning and training Objectives) simulator at the 2004 IACP (International Association of Chiefs of Police) Conference, November 13-15, in Los Angeles.

Milo is a new interactive training presentation system designed with “plug in” modules to totally customize the training system to meet end user needs. Milo changes the role of the interactive simulator to include test and evaluation functions and adds the capability to offer teaching and learning programs.

Milo will expand the market for sales of IES Interactive Training products to include organizations involved in all aspects of Public Safety, not just law enforcement. Milo is being presented to the Federal, Municipal and local government agencies as a total training solution for Use of Force, Firearms, Driving and Classroom Training and Testing as well as Learning and Teaching Presentations and Distributed Classroom Training.

Milo is the first interactive training simulation system to offer true High Definition video performance in a 16:9 format. The unmatched clarity and field of view presented by the Milo system creates a more realistic experience within the interactive training environment.

Milo system allows the customer complete flexibility for the creation of training and learning programs, testing and evaluation and skills assessment. Multiple divisions inside of an agency can standardize the methods and processes of training by using Milo system.

Milo comes with an all-new editing software program that can be used for presentations in classrooms, auditoriums, and training rooms or for one on one instruction. Milo utilizes the latest technologies, with 95% commercially off the shelf components, making support and service timely and inexpensive. Milo uses both digital video and computer graphics capabilities, so that the user can create fully interactive training videos and/or graphics based training environments on the same system.

“Not only do we believe that the new Milo interactive training system will change the way Law Enforcement trains, it is going to empower educators to change the world of interactive training,” said Robert S. Ehrlich, Arotech Chairman and CEO. “With this new product offering, IES is now expanding into the much larger Public Safety market.”

On a separate matter, Arotech announced it will release 2004 Q3 results Tuesday, November 9, after Markets close. A conference call to discuss the results will take place Wednesday, November 10, at 10 AM. Conference call details will be published when results are released.

About IACP

The 111th annual IACP Conference is the largest trade show in the world for the law enforcement community. An estimated 10,000 law enforcement professionals will be in attendance to examine the state of the police industry, assess the latest security and contingency plans, and participate in professional development programs.

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.