Arotech’s Battery and Power Systems Division Receives Follow-On Micro Air Vehicle (MAV) Contract From Israeli Defense Agency

April 20, 2005 - Arotech Corporation (NasdaqNM: ARTX) announced today that its Electric Fuel subsidiary has received a follow-on contract from an Israeli security agency for its new generation zinc-air batteries. Under the terms of the contract, Arotech’s Electric Fuel subsidiary will continue to develop prototype zinc-air cells to achieve extended flight times for Micro Aerial Vehicles (MAVs).

Electric Fuel's cutting-edge zinc-air cells for MAVs are high-power, lightweight versions of its most advanced zinc-air cells. The Company has already demonstrated that its zinc air batteries extend the mission duration of these reconnaissance aircraft.

“The unmanned vehicle market is rapidly growing, triggering the growing demand for advanced power sources,” said Robert S. Ehrlich, Arotech Chairman and CEO. “This follow on contract, together with other recently announced contracts for our 4th generation zinc air cells, demonstrates our leadership in this technology and in our ability to increase mission times for these vehicles.”

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: Armoring, Simulation and Security and Batteries 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.