Arotech Receives New
Contract to Supply up to
$24 Million in Zinc-Air Batteries to the US Defense Department
Multi year contract reaffirms
Arotech’s position as leading supplier of zinc-air batteries
to the US Army
29, 2005 - Arotech Corporation (NasdaqNM: ARTX) announced today
that its Electric Fuel Battery subsidiary has received from the
US Army’s Communications and Electronic Command (CECOM), a
new contract to supply up to $24 million in zinc-air batteries and
adaptors to the DoD over the next three years.
The new Firm Fixed Price, Indefinite
Delivery, Indefinite Quantity contract follows the successful implementation
of a previous sole supplier contract, in which Arotech delivered
its zinc-air batteries to the full satisfaction of CECOM. With the
new contract award, Arotech continues to be the US Army’s
sole source for fielded high power zinc-air batteries.
Under the new contract, Arotech’s
Electric Fuel will be enabled to deliver the BA-8180/U and the three
existing interface adapters. In addition, a new battery, the BA-8140/U,
and four new adapters are introduced in this contract and have been
ordered for First Article Testing (FAT).
“This new contract reinforces
our leadership in zinc-air technology, which outperforms competing
technologies in energy density,” said Robert S. Ehrlich, Chairman
and CEO of Arotech. “We are committed to serving the Army
with a safe and cost-effective technology that enhances the soldiers’
extended mission capabilities.”
Electric Fuel’s BA-8180/U
zinc-air battery is a 12/24 Volt, 800 Watt-hour, non-rechargeable
battery pack, approximately the size and weight of a notebook computer.
The battery is based on lightweight, 30 ampere-hours cells. The
existing adapters include the BA-5590/U eliminator and interfaces
for ASIP 119F and SINCGARS 119B radios.
The new BA-8140/U zinc-air battery
is a 12 Volt, 400 Watt-hour, non-rechargeable battery pack, approximately
half the size and weight of the BA-8180/U. The new adapters included
are for the MBITR radio, the M22 ACADA chemical detector, the Javelin
CLU and SATCOM/HF radios.
Zinc-air batteries are considerably
safer in combat situations, lighter for extended missions, more
economical and more environmentally friendly than lithium batteries.
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
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.