Arotech Announces Awards of Over $10 Million in Driving Simulator Contracts

-Company Backlog increases to $30 million-

August 17, 2005 - Arotech Corporation (NasdaqNM: ARTX) announced today that its Simulation and Security Division, through its FAAC subsidiary, has recently received driving simulator contracts totaling over $10.5 million. “The contracts, for a total of 34 simulators, include both military and transit customers,” states Al Jordan, FAAC CEO.

“Demand for our simulation products continues to be strong, as witnessed by these latest contract awards,” said Robert S. Ehrlich, Arotech’s Chairman and CEO. “This strong demand stems from our ability to offer our customers a unique training environment which is safe, productive, yet realistic. These contracts and other recently received contracts, attest to the high quality of our products and services.”

About Arotech’s Simulation and Security Division

Arotech’s Simulation and Security Division develops manufactures and markets advanced hi-tech multimedia and interactive digital solutions for use-of-force and driving training of military, law enforcement, security and private industry personnel. The division’s fully interactive driver-training systems feature state-of-the-art vehicle simulator technology enabling training in situation awareness, risk analysis and decision making, emergency reaction and avoidance procedures, and conscientious equipment operation. Over 100,000 drivers have been trained on its installed base of 244 driving simulators. The division 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. In addition, the division’s use-of-force training products and services allow organizations to train their personnel in safe, productive and realistic environments.
Arotech’s Simulation and Security Division consists of FAAC Incorporated and IES Interactive Training Inc.

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, 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.