Arotech's Armor Division Receives Over $3 Million in New Orders for Military Armored Vehicles

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Arotech's Armor Backlog Reaches $18.8 Million

ANN ARBOR, MI -- (MARKET WIRE) -- 06/03/08 -- Arotech Corporation (NASDAQ: ARTX) announced today that its Armor Division has recently received an additional $3.0 million order for its military armored vehicles and accessories to be supplied from the MDT plants in the US and in Israel.

"We are delighted to have received additional orders for our military vehicles used for combat missions and designed for the urban low intensity conflict," said Robert S. Ehrlich, Chairman and CEO of Arotech Corporation. "Our vehicles have proven ideal for operating in urban and other densely populated areas and these new orders are a testament to capabilities of the vehicles. The adaptable design allows for various armor options, seating arrangements and equipment installations that are all designed to meet specific operational tasks," added Ehrlich. "The new order of vehicles will bolster our backlog, as we have now transitioned our production process to the new model year. Beginning as of this month, June 2008, we are now operating at full production in our facilities," concluded Ehrlich.

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 Protective Industries Ltd., MDT Armor Corporation 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 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, Training and Simulation, 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. 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, 2007, 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.

Victor Allgeier
TTC Group
(646) 290-6400
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