Arotech’s FAAC Subsidiary receives $1.2M Award
from the Maryland Aviation Administration to
Manufacture Advanced Airport Driver Training Simulator

February 27, 2008 - Arotech Corporation (NasdaqGM: ARTX) announced today that its Training and Simulation Division, through its FAAC Incorporated subsidiary, has been awarded a $1.2 million contract from the Maryland Aviation Administration (MAA). Through an exhaustive search process, the MAA has chosen FAAC to build a custom driver training simulator to provide training for on-field emergency responders and ground support personnel at the Baltimore/Washington International Thurgood Marshall Airport (BWI).

FAAC will produce an advanced driver training simulator that will closely replicate a variety of emergency and ground support vehicles. Simulated vehicles will include unique emergency response apparatus, state-of-the-art snow removal equipment, and other ground support vehicles. The effort includes a fully interactive virtual representation of BWI airfield to empower operators to train within their specific airport environment.

“Simulation training is especially important in the airport environment,” explained Carlos Rece, Director, Maintenance and Utilities at BWI Thurgood Marshal Airport. “Airport traffic, ground support, and emergency response operators work in a highly regulated environment with extensive rules regarding the movement of their vehicles. It is also difficult to find a window of opportunity to train on airport property with actual vehicles. There is no safer or more effective training method for airport personnel than this driver training simulator.”

“Historically, FAAC has been a leader in state-of-the-art training simulators – to include airport operations,” said David Bouwkamp, FAAC Executive Director of Business Development. “This award exemplifies the renewed interest airport authorities have in ground support driver training simulation. We expect to leverage our past experiences and on-going dedication to customer satisfaction as we work with BWI on this product, setting the standard for airport ground vehicle operator training simulators.”

“FAAC was a pioneer in providing simulation solutions to airports to facilitate training personnel in adverse conditions in the late 90’s and we are excited to continue the evolution of this product line as part of this project,” noted Kurt Flosky, Arotech Training & Simulation Division Executive Vice President. “We are pleased to provide the Baltimore/Washington International Thurgood Marshall Airport with FAAC’s simulators, which we are confident will enhance training and make for a safer and more efficient airport,” concluded Flosky.

About Arotech’s Training and Simulation Division
Arotech’s Training and Simulation Division (ATSD) provides world class simulation based training solutions. ATSD develops, manufactures, and markets advanced high-tech multimedia and interactive digital solutions for engineering, use-of-force, and driver training simulations for 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. The division’s use-of-force training products and services allow organizations to train their personnel in safe, productive, and realistic environments. The division provides consulting and developmental support for engineering simulation solutions. The division also supplies 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 Training and Simulation Division consists of FAAC Incorporated (www.faac.com), IES Interactive Training Inc. (www.ies-usa.com), and Realtime Technologies, Inc. (www.simcreator.com).

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: Training and Simulation, Armor, 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. For more information on Arotech, please visit Arotech’s website at www.arotech.com.

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; 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.