US Marine Corps awards $9M to Arotech Training and Simulation Division’s FAAC Subsidiary for Operator Driving Simulators

Company Backlog reaches $49.1 million

May 21, 2007 - Arotech Corporation (NasdaqGM: ARTX)announced today that its Simulation and Training Division, through its FAAC subsidiary, has recently received an order valued at $9,068,863 from the U.S. Marine Corps Systems Command, Program Manager for Training Systems (PMTRASYS), located in Orlando, FL. The order calls for FAAC to deliver 15 mobile operator driving systems. Configured as single and double simulator trailers, the systems will provide simulation based training on MK-23 and Up-Armored HMMWV (M1114) operations using reconfigurable driver compartments. This procurement leverages the USMC investment in FAAC simulators currently in use at Fort Leonard Wood for new operator training and continues their proactive delivery of training systems to the field with recent deliveries to Marine Corps Air Ground Combat Center at Twentynine Palms, CA and Marine Force Reserve units in Red Bank, NJ and Las Vegas, NV.

“The successes from the installed operator driving systems, both in terms of reduced accidents and the incalculable benefit of better preparing Marine motor transport operators facing the demands of deployed combat conditions, have confirmed the utility of simulation based driver training and have ultimately saved lives” said Colonel Walter Augustin, Commander PMTRASYS.

“The USMC’s Program Manager for Training Systems, with support from the USMC Training and Education Command, has continued to lead the US Armed Forces in adopting our simulation solutions to prepare active and reserve Marines for tactical deployment conditions, as well as to provide home station refresher training,” said Kurt Flosky, Executive Vice President of Arotech’s FAAC subsidiary.

FAAC is a leading provider of simulation solutions to the U.S. Armed Forces. Over 140 FAAC driver training systems have been acquired by the U.S. Army, U.S. Navy, U.S. Marine Corps, and U.S. Air Force.

About Arotech’s Simulation and Training Division

Arotech’s Simulation and Training Division develops, manufactures, and markets advanced high-tech multimedia and interactive digital solutions for use-of-force and driver training of military, law enforcement, security, municipal and private industry personnel. The division’s fully interactive driver-training systems feature state-of-the-art vehicle simulator technology enabling training in situation awareness, risk analysis and decision making, emergency reaction and avoidance procedures, and conscientious equipment operation. In addition, the division’s use-of-force training products and services allow organizations to train their personnel in safe, productive, and realistic environments. The division also provides pilot decision-making support software for the F-15, F-16, F-18, and JSF aircraft, as well as simulation models for the ACMI/TACTS air combat training ranges.

Arotech’s Simulation and Training Division consists of FAAC Incorporated and IES Interactive Training Inc.

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 Training and Battery and Power Systems.

Arotech is incorporated in Delaware, with corporate offices in Ann Arbor, Michigan, and research, development and production subsidiaries in Alabama, Michigan 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, including the results of our restructuring program. Forward-looking statements reflect management’s current knowledge, assumptions, judgment and expectations regarding future performance or events. Although management believes that the expectations reflected in such statements are reasonable, 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 materially. 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; dilution resulting from issuances of Arotech’s common stock upon conversion or payment of its outstanding convertible debt, which would be increasingly dilutive if and to the extent that the market price of Arotech’s stock decreases; and other risk factors detailed in Arotech’s most recent Annual Report on Form 10-K for the fiscal year ended December 31, 2006, 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.