Arotech’s MDT Armoring Subsidiary Receives New Orders for
Over $5.5 Million

First order for new US armoring facility brings Arotech’s backlog up to $23 million

March 10, 2004 - Arotech Corporation (NasdaqNM: ARTX) announced today that its MDT vehicle armoring subsidiary has received new orders in March for over $5.5 million. Orders received include the first order for production in MDT Armor’s new Auburn, Alabama, facility. With this new plant, MDT is now positioned to supply armored vehicles to the US Government and to US businesses.

Including these new orders, Arotech’s backlog stands at $23 million.

“Arotech’s backlog through March 10 is already 35% more than our revenues were for all of 2003,” said Robert S. Ehrlich, Arotech Chairman and CEO. “This includes a backlog of almost $8 million in our Battery and Power Systems division, over $6 million in our Simulation, Training and Consulting division, and almost $9 million in our Armored Vehicle division – and we still have over nine months in which to book new orders.”

About MDT

MDT is a leader in state-of the art, lightweight armoring of vehicles. MDT's vehicle armoring business has years of battlefield experience and has provided life-saving protection under the most extreme conditions, which include assault rifles and bomb blasts. MDT armors a variety of armored vehicles: SUV’s such as the Toyota Land Cruiser, the Land Rover Defender and the GM Suburban; vans and buses – from an 8 passenger Ford Econoline to a 16 passenger Mercedes bus; ambulances and other specialty vehicles.

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.