Arotech's Electric Fuel Joins International Zinc Consortium with Focus on Electric Vehicles for 2008 Beijing Olympics

Zinc and energy storage producers unite to form zinc energy storage technology consortium

March 15, 2005 - Arotech Corporation (NasdaqNM: ARTX) announced today that its Electric Fuel subsidiary is one of the founders of the recently formed Zinc Energy Storage Technology (ZEST) Consortium. Launched in March 2005, the Consortium’s declared aim is to enable the market for zinc-energy storage technology to realize its full potential. The Consortium will initially focus on the electric vehicle market in Asia.

In preparation for the Olympic Games in Beijing in 2008, which China in its successful bid to the International Olympic Committee declared would be a “Green Olympics,” China has committed to employing 1,000 environmentally clean buses for transportation of athletes to and from sporting venues, and Consortium members are bidding to supply at least part of this fleet. People’s Daily Online (English edition) has reported that while no agreement has yet been reached, the Chinese government and the Shanghai municipal government were expected to cooperate in the green renovation of Shanghai’s 18,000 buses.

Arotech’s zinc-air hybrid bus can travel 145 miles under the most demanding city driving conditions while operating all standard bus features including air-conditioning. Powered by Electric Fuel’s zinc air technology, the bus has zero tailpipe emissions and recently, in an FTA program performance test, it was proven that the bus can also run on commercially available zinc.

Independent studies have shown that zinc-air powered transit vehicles compete favorably with other available alternative fuel technologies on the basis of life-cycle costs, while providing far greater environmental benefits in the form of zero emissions and overall reduction in each of the key air pollutants associated with transportation.

“We believe that our zinc air technology for electric transportation has great potential” said Robert S. Ehrlich, Arotech Chairman and CEO. “Rising fuel costs and Electric Fuel's technology advancements can position our zinc-air system as a real alternative to hydrogen-based fuel cells for clean transportation in Asia,” continued Ehrlich. “The 2008 Olympic Games would offer all of the members of the ZEST Consortium, including Electric Fuel, an unprecedented opportunity to demonstrate to the entire world the present-day capabilities of clean, zinc air transportation, as exemplified by our electric bus,” concluded Ehrlich.

The ZEST Consortium inauguration meeting was attended by Canadian zinc manufactur-ers Noranda and TeckCominco, Mexico's Penoles; Battery manufacturers Electric Fuel Ltd, PowerZinc and PowerGenix; and the International Zinc Association and ILZRO. The ZEST Consortium includes additional key zinc suppliers.

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 simula-tors/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 New York, 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 cau-tioned 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 re-cent Annual Report on Form 10-K for the fiscal year ended December 31, 2003, as amended, 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.