Arotech’s Armor Division Receives $1.1 Million in New Orders to Armor Land Cruisers, Land Rover Defenders and Ford Econoline Ambulances

January 24, 2005 - Arotech Corporation (NasdaqNM: ARTX) announced today that its Armor Division, had received new orders totaling $1.1 million.

The orders were awarded to Arotech’s MDT subsidiary by various customers for the delivery of armored Toyota Land Cruisers, Land Rover Defenders and armored ambulances based on the Ford Econoline E350 van. Vehicles will be armored in both MDT vehicle armoring facilities in Israel and in Alabama.

“We are very pleased with the continued growth of our Armor Division," said Robert S. Ehrlich, Arotech Chairman and CEO. "Many of our armored vehicles have been shipped to Iraq and have saved the lives of passengers under attack. The new orders demonstrate the excellent quality of our lightweight armoring and leadership in this field. We look forward to continued progress in the coming year."

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 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 Batteries and Power Systems.

Arotech is incorporated in Delaware, with corporate offices in New York, 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, 2003, 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.