Arotech to Hold a Conference Call to Preview 2003 Results, Thursday, January 15, 2004 at 10:00 A.M.

FAAC 2002 revenues over $15 million, with $1.8 million in pre-tax profit;
2003 pre-tax profit forecast at $1.6 million

January 13, 2004 - Arotech Corporation (NasdaqNM: ARTX) announced today that it will hold a conference call to discuss the preliminary results of 2003 and the recent acquisition on Thursday, January 15, 2004, at 10:00 a.m. ET.

Those wishing to take part in the conference call should call 1-800-967-7184 (US) or +1-719-457-2633 (international) a few minutes before the 10:00 a.m. ET start time. In addition, an instant replay will be available Thursday, January 15, 2004 at 1:00 p.m. ET until Friday, January 16, 2004 at 8:00 p.m. ET. The replay telephone number is 1-888-203-1112 (US); +1-719-457-0820 (international). The passcode is 119177.

"We have made great strides in turning around our company," said Robert S. Ehrlich, Arotech's Chairman, President and CEO. "At the conference call I plan to review the progress we made in 2003 and outline our outlook for 2004."

About Arotech Corporation

Arotech Corporation (www.arotech.com) operates two business divisions: Electric Fuel Batteries - developing and manufacturing zinc-air batteries for military and homeland security applications and developing electric vehicle batteries for zero emission public transportation; and Arotech Defense - consisting of IES Interactive, which provides advanced high-tech multimedia training systems for law enforcement and paramilitary organizations, MDT Protective Industries, which provides vehicle armoring for the military, industrial and private sectors, and Arocon Security, which provides homeland security consulting and other services.

Arotech is incorporated in Delaware and has corporate and sales offices in New York and Denver with research, development and production subsidiaries in Alabama, Colorado 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; significant future capital requirements; 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.