Arotech Appoints President for Alabama Battery and Power Systems Subsidiary

New appointment is part of goal to expand subsidiary activity and become a world leader in both primary and rechargeable power sources

January 31, 2005 - Arotech Corporation (NasdaqNM: ARTX)today announced the appointment of Graydon Hansen to President of its Electric Fuel Battery Corporation subsidiary in Alabama. Mr. Hansen joins Arotech’s management team with extensive experience in engineering and operations and a wealth of knowledge in the field of power supplies and batteries.

Mr. Hansen’s experience includes senior management positions at Elpac Electronics, a manufacturer of power supplies, AC/DC adapters, custom docking stations and battery chargers and Trojan Battery Company, a world leader in high quality deep cycle battery design and manufacturing. His background also includes engineering and technical management experience at Lockheed Missiles and Space, AER Energy Resources, Micro Power Electronics and Advanced Charger Technology. Mr. Hansen holds a BSEE from the University of California in Berkeley and is a Registered Professional Engineer.

"I would like to welcome Mr. Hansen to our management team and wish him great success in his new position," said Robert S. Ehrlich, Arotech Chairman, President and CEO. "I am confident that Graydon’s expertise in both rechargeable battery electronics and zinc air battery technology will further our goal of becoming a world leader in portable military power sources. We are very pleased with the achievements of our Battery and Power Systems Division and look forward to continuing to develop our product offering and extending our reach to other military markets.”

Arotech's Electric Fuel Battery Corporation manufactures and sells Zinc-Air fuel cells, rechargeable batteries and associated chargers for the military. The new appointment is part of Arotech’s goal to expand the activity of the subsidiary and contribute to the progress and success of its Battery and Power Systems Division.

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.