Arotech's Epsilor Subsidiary Receives $2.2 Million Military Battery and Charger Order

February 12, 2004 - Arotech Corporation (NasdaqNM: ARTX) announced today that its Epsilor Electronics Industries subsidiary has received a $2.17 million order for military rechargeable batteries and smart chargers from an Asian country.

The unique rechargeable battery powers man-portable electro-optic systems used for military and security applications. The Company expects to deliver the batteries and chargers by mid 2004.

"This order represents the beginning of our expanded battery marketing reach," said Robert S. Ehrlich, Arotech Chairman and CEO. "Our aim is to leverage Epsilor's Asia and the Mid East market leadership to the US military and homeland security markets."

About Epsilor Electronic Industries Ltd.

Epsilor Electronic Industries Ltd. is a top tier military battery company that designs, manufactures and markets portable power products. Epsilor specializes in primary and rechargeable lithium batteries and associated smart chargers

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.