Arotech Simulation and Training Division Announces $4.9M in Orders

-- The recently relocated IES division has experienced continuity in operations and successfully began shipping product from Ann Arbor. In May, fourteen use of force systems were shipped to nine different customers. This milestone is in combination with recent awards totaling over $1.47M for thirty-four systems from eight customers.

-- Continued support of FAAC's weapon simulation software was evidenced with over $1.56M of awards, exemplified by continuing efforts associated with our weapon employment zone algorithms on-board the F-15 and support of a foreign delivery version of the F-16.

-- FAAC received over $1.89M in awards for driving simulators including successes resulting from our recent focus on the public safety sector. FAAC received fire-related driving simulator orders from three agencies and an extension of our fire Incident Command Product to include weapons of mass destruction elements.

"The simulation and training division remains strong and wellpositioned for continued success," said Steven Esses, ArotechPresident and Chief Operating Officer. "We are especially excited tobegin to see the positive results of relocating IES to Ann Arbor, notonly in terms of cost savings but the product enhancements andcapabilities we are able to offer our customer base throughconsolidated operations."

About Arotech's Simulation and Training Division

Arotech's Simulation and Training Division develops, manufactures,and markets advanced high-tech multimedia and interactive digitalsolutions for use-of-force and driver training of military, lawenforcement, security, municipal and private industry personnel. Thedivision's fully interactive driver-training systems featurestate-of-the-art vehicle simulator technology enabling training insituation awareness, risk analysis and decision making, emergencyreaction and avoidance procedures, and conscientious equipmentoperation. In addition, the division's use-of-force training productsand services allow organizations to train their personnel in safe,productive, and realistic environments. The division also providespilot decision-making support software for the F-15, F-16, F-18, andJSF aircraft, as well as simulation models for the ACMI/TACTS aircombat training ranges.

Arotech's Simulation and Training Division consists of FAACIncorporated and IES Interactive Training Inc.

About Arotech Corporation

Arotech Corporation is a leading provider of quality defense andsecurity products for the military, law enforcement and homelandsecurity markets, including multimedia interactivesimulators/trainers, lightweight armoring and advanced zinc-air andlithium batteries and chargers. Arotech operates through three majorbusiness divisions: Armor, Simulation and Training and Battery andPower Systems.

Arotech is incorporated in Delaware, with corporate offices in AnnArbor, Michigan, and research, development and production subsidiariesin Alabama, Colorado, Michigan, California and Israel.

Except for the historical information herein, the mattersdiscussed in this news release include forward-looking statements, asdefined in the Private Securities Litigation Reform Act of 1995,including the results of our restructuring program. Forward-lookingstatements reflect management's current knowledge, assumptions,judgment and expectations regarding future performance or events.Although management believes that the expectations reflected in suchstatements are reasonable, readers are cautioned not to place unduereliance on these forward-looking statements, as they are subject tovarious risks and uncertainties that may cause actual results to varymaterially. These risks and uncertainties include, but are not limitedto, risks relating to: product and technology development; theuncertainty of the market for Arotech's products; changing economicconditions; delay, cancellation or non-renewal, in whole or in part,of contracts or of purchase orders; Arotech's ability to remain listedon the Nasdaq Stock Market in accordance with the Nasdaq's $1.00minimum bid price and other continued listing standards; dilutionresulting from issuances of Arotech's common stock upon conversion orpayment of its outstanding convertible debt, which would beincreasingly dilutive if and to the extent that the market price ofArotech's stock decreases; and other risk factors detailed inArotech's most recent Annual Report on Form 10-K for the fiscal yearended December 31, 2004, as amended, and other filings with theSecurities and Exchange Commission. Arotech assumes no obligation toupdate the information in this release. Reference to the Company'swebsite above does not constitute incorporation of any of theinformation thereon into this press release.