US Marine Corps Awards Arotech over $725,000 in Orders for Training Systems and New Simulated Armor Kit Solution

AUBURN, Ala.--March 29, 2006--Arotech Corporation announced today that its Simulation and Training Division, through its FAAC subsidiary, has recently received orders valued at over $725,000 from the U.S. Marine Corps Systems Command, Program Manager for Training Systems, located in Orlando, FL. FAAC will provide the Marine Corps Air Ground Combat Center at Twentynine Palms, CA, with a mobile, trailer-mounted Marine Corps Operator Driving Simulator. In addition, the Marine Corps has also procured Simulated MTVR Armor System (MAS) kits to upgrade all Marine Corps Operator Driving Simulators. The upgrades will enable all Marine Corps simulators to replicate the challenges of MTVR operations when outfitted with full armor.

"This procurement, with accelerated delivery schedule, is a direct response to the urgent need for training Marine Motor Transport Operators as they prepare for deployment," said Kurt Flosky, Executive Vice President of Arotech's FAAC subsidiary. "The Simulated MAS Upgrade Kit includes both physical modifications to the cab and vehicle dynamics modeling in software. The Upgrade Kit will be developed and produced for installation on the new simulator as well as the 42 Marine Corps simulators currently in the field at five different locations."

During a recent visit to FAAC's headquarters, Lieutenant General John Bergman, Commander, Marine Forces Reserve, noted: "The Marine Corps needs this type of simulation training as part of combat training to prepare for today's challenges."

"The new MAS Armor Kit reflects the inherent flexibility of our driving simulators to evolve and provide the most appropriate training for today's Marines," said Steven Esses, Arotech President and Chief Operating Officer. "We value this opportunity to maintain our long relationship with the Marine Corps and appreciate their continuing confidence in FAAC's driving simulator product line and our corporate capabilities."

FAAC is a leading provider of driving training simulation solutions to the U.S. Armed Forces. Over 50 FAAC MTVR driving training systems are currently in use by the U.S. Navy and U.S. Marine Corps.

About Arotech's Simulation and Training Division

Arotech's Simulation and Training Division develops, manufactures, and markets advanced high-tech multimedia and interactive digital solutions for use-of-force and driver training of 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. In addition, the division's use-of-force training products and services allow organizations to train their personnel in safe, productive, and realistic environments. The division 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.

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

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 Battery and Power Systems.

Arotech is incorporated in Delaware, with corporate offices in Auburn, Ala., 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, including the results of our restructuring program. 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; Arotech's ability to remain listed on the Nasdaq Stock Market in accordance with the Nasdaq's $1.00 minimum bid price and other continued listing standards; 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, 2004, 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.