Arotech Receives Additional Research Funding Of $650,000 From U.S. Army

Program to develop high energy density batteries aimed towards Future Force Warrior program

April 6, 2005 - Arotech Corporation (NasdaqNM: ARTX) announced today that its Battery and Power Systems division has received additional funding from the U.S. Army’s Communications and Electronics Command, CECOM, for further development of its 4th generation (Gen4) zinc-air cells.

The funding covers Phase II of a three-phased research and development program for Gen4 Zinc-Air Cells aimed at the Future Force Warrior project – the US Army’s flagship Science and Technology initiative to develop and demonstrate revolutionary capabilities for Future Force soldier systems. Arotech’s Gen4 portable battery pack is 12 or 24 Volts and has a total capacity exceeding 400Wh with Battery Energy Density above 300Wh/kg. The second phase of the program will focus on the development of a pilot production capability.

Arotech’s zinc-air technology outperforms competing technologies in energy density. The zinc-air batteries are considerably safer in combat situations, lighter for extended missions, more economical and more environmentally friendly than lithium batteries.

“Since the launch of our Gen4 technology, we have received multiple development contracts for our new generation zinc-air cells. The additional funding from CECOM, together with endorsements by other major customers in the U.S and in Israel, demonstrates the significance of this technology,” said Robert S. Ehrlich, Chairman, President and CEO of Arotech. “We look forward to supplying the most advanced zinc-air batteries to extend mission times and enhance the capabilities of our armed forces.”

Arotech’s Battery and Power Systems Division is a leading provider of zinc-air and lithium batteries and chargers for defense and security products and other military applications. Arotech develops and produces high power zinc-air batteries and is believed to be the sole supplier of this technology to the US military. In addition, Arotech develops high-end primary and secondary batteries and associated chargers and has vast experience in working with government agencies, the military and large corporations. The division also pioneers advancements in zinc-air technology for electric vehicles.

The Battery and Power Systems Division consists of Electric Fuel Battery Corporation, Electric Fuel Ltd., and Epsilor Electronic Industries Ltd.

About Arotech Corporation

Arotech Corporation is a leading provider of quality defense and security products for the military, law enforcement and homeland security markets, including multimedia interactive simulators/trainers, lightweight armoring and advanced zinc-air and lithium batteries and chargers. Arotech operates through three major business divisions: Armor, Simulation and Security and Battery and Power Systems.

Arotech is incorporated in Delaware, with corporate offices in Auburn, Alabama, and research, development and production subsidiaries in Alabama, Colorado, Michigan, California 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, 2004 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.