Arotech Subsidiary FAAC Receives Order for Stryker Driving Simulators; Part of US Army's Common Driver Trainer -CDT- Program

NEW YORK--Oct. 1, 20049, 2004--Arotech Corporation announced today its FAAC subsidiary has received an award for Army Stryker driving simulators. These simulators are part of the Army's Common Driver Trainer (CDT) program.

Recently the US Army Program Executive Office for Simulation, Training and Instrumentation (PEO STRI) awarded a $6.9 million contract (with a total value of $8.78 million if all options are exercised) to Science Applications International Corporation (SAIC), as the CDT prime contractor. FAAC is SAIC's primary subcontractor for CDT, and it's responsibilities include providing driving trainers with visual data bases.

The CDT will train basic driving skills and tactical maneuvering for combat situations. The Stryker driver's compartment will replicate the all-driving controls including: the vehicle dashboard, lights, indicators, switches, instruments and pedals. The simulator will train all drivers on various types of terrain and environmental conditions such as desert, woodland, urban, mountainous, and frozen terrains. It also will allow simulation of day or night, rain, fog, and other conditions that Soldiers encounter in live operations.

The simulator will provide a realistic representation of vehicle performance in accordance with the terrain and the actions taken by the driver, including vehicle malfunctions and embedded diagnostic and trouble-shooting capabilities for the driver. The system will also include after action review to provide the driver and crew with critical lessons-learned feedback of their simulated missions.

"The CDT program is a task order contract for Army driving trainers," explained Kurt Flosky, FAAC program manager. "FAAC's first task order for Stryker driving simulators with visual databases is based on the technology that has built our successful line of over 70-installed military driving simulators for the Army, Marines, and Navy."

"This contract is a major win for FAAC and the SAIC team," stated Al Jordan, FAAC president. "The Army has referenced long-terms goals of producing as many as 200 driving simulators over the next ten years, and we anticipate a long, successful relationship with SAIC and their customer, PEO STRI."

"FAAC is an established supplier of driver simulators in many areas of transportation including the military, transit, trucking and emergency first response," said Robert S. Ehrlich, Arotech Chairman and CEO. "This CDT award for Sryker simulators validates this position."

About SAIC

SAIC (www.saic.com) is the nation's largest employee-owned research and engineering company, providing information technology, systems integration and eSolutions to commercial and government customers. SAIC engineers and scientists work to solve complex technical problems in national and homeland security, energy, the environment, space, telecommunications, health care, transportation and logistics. With annual revenues of $6.7 billion, SAIC and its subsidiaries, including Telcordia Technologies, have more than 44,000 employees at offices in more than 150 cities worldwide.

About FAAC Inc.

FAAC Incorporated (www.faac.com) has been providing high fidelity training and simulation products to its military and commercial customer base for over 30 years. FAAC supplies driving simulators for training operators of automobiles, trucks, police/fire/EMS vehicles, bus drivers, light rail operators, and airport ground vehicles. Over 85,000 drivers have been trained on FAAC's installed base of 189 driving simulators. FAAC also provides pilot decision-making support software for the F-15, F-18, and JSF aircraft as well as simulation models for the ACMI/TACTS air combat training ranges.

About Arotech Corporation

Arotech Corporation (www.arotech.com) provides quality defense and security products for the military, law enforcement and homeland security markets, including advanced zinc-air and lithium batteries and chargers, multimedia interactive simulators/trainers and lightweight armoring.

The Battery and Power Systems Division includes Electric Fuel Battery Corporation and Epsilor Electronic Industries Ltd. The Simulation, Training and Consulting Division includes IES Interactive Training, FAAC Incorporated and Arocon Security Consulting. The Armoring Division includes MDT Armor Corp., MDT Protective Industries Ltd. and Armour of America, Incorporated.

Arotech is incorporated in Delaware, with corporate offices in New York, 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, 2003 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.