Arotech’s FAAC Incorporated Weapon Simulation Group Continues Strong 2009 with $8.6 Million in New Orders since June

Company Backlog is now at a Record $58.0 Million

December 2, 2009 - Arotech Corporation (NasdaqGM: ARTX) announced today that the FAAC Incorporated Weapon Simulation Group of Arotech’s Training and Simulation Division has closed sales recently totaling $8.6 million since June, continuing a record pace. This includes significant sales of its SimBuilder product internationally. SimBuilder provides the capability to export weapon simulations that can be used as the basis for aircraft combat training solutions worldwide.

With these orders, Arotech’s backlog now stands at a record $58.0 million.

“Our position as the pre-eminent supplier of validated high-speed weapon simulations has provided the opportunity to continue our support of the USAF/USN air combat community while opening new markets to export our training solutions to allied countries,” said Randy Houston, FAAC Director of Military Operations.

“The reputation and performance of our Training and Simulation Division and our corporate focus on developing this division has resulted in unprecedented organic growth,” noted Robert S. Ehrlich, Arotech’s Chairman and CEO. “We are dedicated to supporting all of our divisions as they grow and we look forward to continuing this successful trend,” concluded Ehrlich.

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, F-22, and F-35 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 (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. 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, 2008 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.