Lee Ferguson Joins Arotech as President of Armor Division

August 15, 2005 - Arotech Corporation (NasdaqNM: ARTX) announced today that Lee Ferguson has joined the Company and will serve as President of the Armor Division.

For the past four years Lee Ferguson was Chief Operating Officer of Specialty Defense Systems (SDS). SDS, a premier company in the market for military equipage, is a leading supplier of gear worn by soldiers, body armor and helmets. Mr. Ferguson has tremendous experience and many significant contacts in the industry and the DoD.

Mr. Ferguson's first task at the Armor Division will have him focusing on improving the results of Arotech's Armour of America, AoA, subsidiary which has not been performing as well as expected.

"With Lee’s experience and leadership, we are optimistic that we’ll begin to see substantial improvement in AoA in the near term,” said Robert S. Ehrlich, Arotech’s Chairman and CEO. "We all welcome Lee, and wish him success.”

About Arotech's Armor Division:
Arotech’s Armor Division is an innovative leader in lightweight armoring for vehicles. 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 Battery 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.