Arotech Timely Files 10-Q Report for Quarter
Ending March 31, 2005

Company also files registration statements relating to previously-disclosed transactions and issuances

May 16, 2005 - Arotech Corporation (NasdaqNM: ARTX), a provider of quality defense and security products for the military, law enforcement and security markets, today announced that it has timely filed its Quarterly Report on Form 10-Q for the quarter ended March 31, 2005 with the SEC. The report follows Arotech’s Q1, 2005, earnings press release last week in which the Company announced a 45% increase in revenues compared to the corresponding quarter last year.

Arotech also announced that it has filed registration statements on Forms S-8 and S-3 for the registration of shares of common stock relating to the adoption last year by Arotech’s stockholders of Arotech’s 2004 Stock Option and Restricted Stock Purchase Plan and to certain other issuances relating to transactions previously disclosed by Arotech.

Arotech filed a registration statement on Form S-8 to register shares under the Company’s 2004 Stock Option and Restricted Stock Purchase Plan, which was approved by Arotech’s stockholders at last year’s Annual General Meeting.

- Arotech filed a registration statement on Form S-3 to register shares to pay an earnout in connection with Arotech’s acquisition of FAAC. The earnout is based on FAAC’s impressive profitability in 2004. The successful acquisition and integration of FAAC contributed dramatically to the growth of Arotech’s Simulation and Security division. As a result, revenues for the division reached a record $21.5 million in 2004, compared to $7.9 million in 2003.

- FAAC continues to be a major contributor to Arotech’s operating results and management believes that FAAC’s business will provide Arotech with substantial revenues and profit going forward.

- Arotech filed another registration statement on Form S-3 to register the shares underlying certain warrants that Arotech issued in July 2004. These warrants were approved by an overwhelming majority of Arotech’s stockholders at a special stockholders’ meeting held in December 2004.

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, 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.