New Arotech Adaptors to be Introduced by the U.S. Army

- First man-portable hybrid power sources procured by the U.S. Army -

October 17, 2005 - Arotech Corporation (NasdaqNM: ARTX) announced today that its Electric Fuel Battery subsidiary has received an order from the US Army’s Communications and Electronic Command (CECOM), for four new adaptors.

Under this latest order, Arotech’s four new adapters will be procured by the Army for a variety of applications. The SATCOM High Frequency radio adaptor incorporates rechargeable batteries and the JAVELIN anti tank missile adaptor incorporates a capacitor bank. Connected together with the Zinc-Air BA-8180/U battery, each forms a hybrid power source, which provides enhanced energy densities. This represents the first time that man-portable “hybrids” are being stocked by the U.S. Army. The other new adaptors will be used for the MBITR radio and the M22 ACADA chemical detector.

“This order for new adaptors coupled with the recently announced order for our new BA-8140/U zinc-air batteries reflects the Army’s confidence in our field-proven zinc-air technology and products,” said Robert S. Ehrlich, Chairman and CEO of Arotech. “These latest products are part of our continued commitment to enhance soldiers’ mission capabilities”.

Arotech is the sole supplier of zinc-air batteries to the U.S. Army and has delivered tens of thousands of its BA-8180/U zinc-air batteries to date.

Zinc-air batteries are considerably safer in combat situations, lighter for extended missions, more economical and more environmentally friendly than lithium batteries.

Arotech’s Battery and Power Systems Division is a leading provider of zinc-air and rechargeable 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, 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.