Arotech Subsidiary FAAC Inc. Gets $1 Million Order for Bus Driver Training Simulator Complex in Flint, Michigan

Arotech’s Backlog exceeds $25 million, most from Defense contracts

April 15, 2004 - Arotech Corporation (NasdaqNM: ARTX) announced today that its subsidiary FAAC Incorporated has been awarded a contract for $1 million from the Mass Transportation Authority of Flint Michigan for the production of a bus driver training simulator complex. The Flint system includes two full mission MB-2000 Bus Simulators as well as associated peripheral software, hardware and service contract.

With this order, Arotech’s backlog exceeds $25 million, most of which is related to its core defense and security business.

This program is the first transit simulator application featuring interchangeable driving stations. MTA will be able to train drivers of three different vehicle types – 40 ft transit bus, 30 ft transit bus, and paratransit van – using highly realistic cabs. Additional driving stations for different vehicle types may be added if the need develops.

“With the system we are providing them, the Flint MTA can make a radical change in the driving environment by simply swapping cabs, which can be completed within 10 minutes,” said Alan Jordan, President of FAAC. “This will provide Flint MTA with a great deal of training flexibility while maintaining a high level of fidelity.”

“FAAC’s commercial business is rapidly developing alongside its defense business,” said Robert S. Ehrlich, Arotech’s Chairman, President and CEO. “Both product lines draw on FAAC’s state of the art simulation technology.”

About FAAC

FAAC Incorporated has been providing high fidelity training and simulation products to it's 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, light rail operators, and airport ground vehicles. Over 80,000 drivers have been trained on FAAC's installed base of 173 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.

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, FAAC Incorporated and Arocon Security Consulting. The Armored Vehicle Division includes MDT Armor Corp 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.