Arotech’s FAAC Incorporated receives $10.3 Million Award to Supply Law Enforcement Driving Simulators to the State of California

November 12, 2009 - FAAC Incorporated, part of Arotech Corporation’s (NasdaqGM: ARTX) Training and Simulation Division, has received an award valued at $10.3M from the California Department of General Services (DGS) to supply Law Enforcement Driving Simulators to the California Commission on Peace Officer Standards & Training (CA POST). FAAC will provide 108 high-fidelity driving simulators to be installed at 24 training centers across the state, including seven mobile training trailers.

The purchase of the FAAC driving simulators by CA POST was motivated by two important factors: 1) the escalating incidence of law enforcement officers killed or injured in traffic collisions both within California and nationally; and 2) findings from CA POST’s recently completed Driver Training Study, Volume 1 2008 (www.post.ca.gov/Publications/Driver_Training_Study). The study examined causes of traffic collisions and interventions to reduce occurrences. Notably, the study found that training with driving simulators is positively associated with a reduction in traffic collision rates. As a result, the POST Commission (www.post.ca.gov/About_Us/Commissioners.asp) unanimously supported the acquisition.

After a competitive procurement, that included a thorough product demonstration with a detailed scoring and evaluation process, DGS and CA POST selected FAAC based upon it receiving the highest technical score, its positive past performance reviews, and it representing the overall best value to the State of California.

“We are pleased to have been chosen and look forward to supporting CA POST in revolutionizing their law enforcement training program,” said David Bouwkamp, FAAC Executive Director of Business Development. “This decision to base the entire state’s training program upon a consistent and standardized simulator will result in incredible synergy among CA POST instructors and improve the driving skills of law enforcement personnel from San Diego all the way to Yreka.”

“This CA POST award validates, on a large-scale, our approach to provide the right fidelity solution as the best value solution for our customers,” said Kurt Flosky, FAAC Executive Vice President. “We remain diligently focused on providing simulator configurations that meet essential training objectives, be it the use of real mirrors for transit customers or our immersive 225° field-of-view for
Public Safety applications – our simulators are purpose-built to maximize training benefits.”

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.