Arotech Receives Order From US Air Force for Man Portable Zinc-Air Batteries

January 27, 2005 - Arotech Corporation (NasdaqNM: ARTX) announced today that its Battery and Power Systems Division has received a pilot order for its new 4th generation man portable Zinc Air battery packs from the US Air Force.

Developed and manufactured by its Electric Fuel Battery Corporation subsidiary, Arotech’s new battery pack is a 12 or 24 Volt battery with a total capacity of over 400Wh and Battery Energy Density of approximately 300Wh/kg. The new battery pack is optimized for use in vests, as man portable tactical radios are typically vest-worn in holsters. The pack is also designed for use in rucksacks.

The order from the US Air Force is the second order for Arotech’s new 4th generation man-portable batteries. The Company previously received an order from the US Army for its new power packs. In addition, Arotech has already received several development contracts for its new generation Zinc-Air batteries for unmanned aerial vehicles.

"We are very excited about the progress we are making with this next generation technology, which far outperforms competing technologies,” said Robert S. Ehrlich, Arotech Chairman and CEO. "With the demand for this technology, we are fulfilling our goal to deliver batteries with more energy, to better serve our armed forces. This new order is a further endorsement of our leadership in this technology.”

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 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.