Arotech Awarded $1.3 Million Order For Aircraft Armor

Armour of America to Provide Kits for U.S. Military Aircraft Flight-Decks

July 21, 2005 - Arotech Corporation (NasdaqNM: ARTX) announced today that its Armour of America (AoA) subsidiary belonging to its Armor Division received a new $1.3 million order to provide armor kits for U.S. military aircraft flight-decks. Delivery of the armor kits is expected to be completed within sixty days.

“This order reflects the continued demand for high quality armor solutions by U.S. armed forces,” said Robert S. Ehrlich, Chairman and CEO of Arotech Corporation. “As a leading provider of ballistic armoring products for fixed wing and rotary aircraft, we have vast experience in providing easily deployable armor solutions for aircraft that operate in hostile environments. We are committed to continuing to provide solutions that will give our troops and aircrew the ballistic protection they deserve.”

About Arotech's Armor Division:

Arotech’s Armor Division is an innovative leader in lightweight armoring for vehicles and ballistic armoring. The Armor Division has years of battlefield and commercial protection experience and has provided life-saving protection under the most extreme conditions. In addition to armoring vehicles for military and commercial customers, Arotech manufactures armor kits for military vehicles, aviation armor both for helicopters and for fixed wing aircraft, marine armor, personnel armor and fragmentation blankets.

The Armor Division consists of MDT Armor Corporation, MDT Protective Industries Ltd. and Armour of America Incorporated.

About Arotech Corporation

Arotech Corporation is a leading provider of quality defense and security products for the military, law enforcement and 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 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, 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.