Arotech Zinc-Air Battery Named One of the US Army's 'Great Inventions of the Year'

The BA-8180 is One of 10 Inventions to Be Recognized June 23

June 17, 2004 - Arotech Corporation (NasdaqNM: ARTX) announced today that the BA-8180 Zinc Air battery -- developed by Arotech's Battery and Power Systems Division - has been designated as one of the "Greatest Army Inventions" of the past year. The ten winning teams will be recognized June 23 by the U.S. Army Research, Development and Engineering Command.

A release issued by the Army News Service quoted Lt. Gen. Richard A. Cody, the Army's deputy chief of staff, G-3 and the final selection authority for the program: "The inventions submitted demonstrate the vast experience within the Army laboratory community as a sincere commitment of these laboratories to improving the readiness of our Army." The Army release also stated that the Electric Fuel zinc-air battery "has an extended lifecycle that enables less batteries to be carried by Soldiers than other rechargeable or lithium batteries".

Nominations for the award program were submitted from across the Army laboratory community and were evaluated by soldier teams from the U.S. Army Training and Doctrine Command and active U.S. Army Divisions, according to Gen. Paul J. Kern, commander of the U.S. Army Materiel Command. Evaluators judged the entries based on their impact on Army capabilities, potential benefit outside the Army and their inventiveness.

"This award shows how important our batteries are for military operations," said Robert S. Ehrlich, Arotech Chairman and CEO. "Coupled with our new Forward Field Charger, the BA-8180 will be able to play an ever growing role in powering the Army's electronic equipment.

About the Battery and Power Systems Division

Arotech's Battery and Power Systems Division specializes in the design and manufacture of primary and rechargeable batteries, related electronic circuits and associated chargers for military applications. The company's products are to government agencies, the military and large original equipment manufacturers. The Electric Fuel and Epsilor Electronics technical teams have state of the art expertise in the fields of electrochemistry, electronics, software and battery design, production, packaging and testing. With approximately 150 employees, 30 of them engineers, the division operates three facilities in Alabama and in Israel.

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.