Arotech Receives $1 Million Vehicle Armor Order from U.S. Army; Arotech's Armour of America Will Supply Armor Kits to Protect US Army Vehicles Operating in Iraq

Business Wire, April 12, 2005

AUBURN, Ala. -- Arotech Corporation (NasdaqNM: ARTX) announced today that its AoA (Armour of America) subsidiary, belonging to its Armor Division, has received a new order valued at over $1 million for ballistic armor kits.

Arotech's AoA subsidiary will supply its armor kits to protect U.S. Army vehicles operating in Iraq. Deliveries are expected to be completed within thirty days.

"Our troops in Iraq need armor protection fast. Our AoA subsidiary is committed to delivering armor for almost immediate installation that will give our troops and aircrews the ballistic protection they deserve," said Robert S. Ehrlich, Arotech Chairman and CEO. "This new order demonstrates the excellent quality and timely delivery of these armor products."

About Arotech's Armor Division:

Arotech's Armor Division is an innovative leader in lightweight armoring for vehicles and ballistic armoring. 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 Armor Corporation, MDT Protective Industries Ltd. 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, Simulation and Security and Batteries and Power Systems.

Arotech is incorporated in Delaware, with corporate offices in Auburn, Alabama and research, development and production subsidiaries in Alabama, Colorado, Michigan, California 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. 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 significantly. 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, 2004, 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.