Electric Vehicle Division News

Arotech to Demonstrate Ultra-Capacitor / Zinc-Air Hybrid Electric Bus in
Albany, NY, November 6, 2003

All Electric Bus Reduces Pollution and Reduces Dependence on Imported Fuel

September 24, 2003 - Arotech Corporation (NasdaqNM: ARTX) announced today that its Electric Fuel Battery Corporation subsidiary will demonstrate its all-electric bus in Albany, NY, on November 6, 2003. This demonstration will mark the finalization of Phase III of the Zinc-Air All Electric Transit Bus program with the Federal Transit Administration. Invited dignitaries and the general public will have the opportunity to ride the electric bus that recently achieved a record 145 mile range, in tests simulating severe urban traffic. Details of the exact time and venue will be announced later.

Powered by the Company's Electric Fuel zinc air fuel cell technology, a pack of advanced ultra capacitors and an improved energy management system, the hybrid all electric bus has zero tailpipe emissions. An urban transit fleet based the Electric Fuel bus, will not only improve the quality of the air – it will also help improve National security by reducing the dependence on imported fuel.

In a recent test the bus traveled 145 miles under typical city bus driving conditions, including stop and go, acceleration and constant speed. The average normal full day cycle for New York City buses is less than 90 miles. The Company believes that all-electric buses utilizing Electric Fuel's Zinc-Air technology have sufficient range to offer a practical alternative to diesel powered buses.

The Electric Fuel All Electric Transit Bus is designed to operate as a full-size, zero emission 40-foot bus having a 20-ton gross vehicle weight (including passengers) and operating all standard bus features, including air conditioning.

“We invite everyone concerned both with the environment and with our growing dependence on imported fuel to attend this demonstration drive,” said Robert S. Ehrlich, Arotech Chairman and CEO. “This drive will offer a first hand opportunity to witness our advanced zinc-air technology.”

About Arotech Corporation

Arotech's corporate mission is to provide quality defense and security products for the military, law enforcement and homeland security markets, including advanced zinc-air batteries, multimedia interactive simulators/trainers and lightweight armoring.

Arotech Corporation (www.arotech.com) operates two business divisions: Electric Fuel Batteries — developing and manufacturing zinc-air batteries for military and homeland security applications and developing electric vehicle batteries for zero emission public transportation; and Arotech Defense — consisting of IES Interactive, which provides advanced high-tech multimedia training systems for law enforcement and paramilitary organizations, MDT Armor, which provides vehicle armoring for the military, industrial and private sectors, and Arcon Security, which provides homeland security consulting and other services.

Arotech is incorporated in Delaware and has corporate and sales offices in New York and Denver with research, development and production subsidiaries in Alabama, Colorado 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; significant future capital requirements; and other risk factors detailed in Arotech’s most recent Annual Report on Form 10-K for the fiscal year ended December 31, 2002, 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.