Air National Guard Exercises Options on FAAC Incorporatedís Boom Operator Simulator System (KC-135 BOSS) Contract adding $18.6 Million of Funded Backlog

Ann Arbor, Michigan Ė July 23, 2012 Ė FAAC Incorporated, part of Arotech Corporationís (NasdaqGM: ARTX) Training and Simulation Division, has received a contract modification exercising options on its Boom Operator Simulator System (KC-135 BOSS) contract. The contract is now funded to $22.9 million. The exercised options include 16 production units, a demonstrator retrofit, and the initial 12 months of Contractor Logistical Support. This modification follows a highly successful post-award conference held at FAAC Incorporatedís Ann Arbor offices.

The Boom Operator Simulator System (KC-135 BOSS) is a high fidelity trainer for the Air National Guard (ANG) boom operators that replicates the KC-135R Block 40 boom pod. The KC-135 BOSS provides an immersive simulation environment that utilizes realistic computer generated images with an emulation of the actual aircraft boom controls. The KC-135 BOSS is intended for squadron level training to be co-located with operational KC-135 air refueling wings. The KC-135 BOSS contract was awarded from the U.S. Army Program Executive Office for Simulation, Training & Instrumentation (PEO STRI) as a competitive small-business delivery order under the STRI Omnibus Contract known as STOC II.

Contact For more information on FAAC Incorporated or its military products, please contact Todd Glenn at 1.352.343.6606.

For more information on Arotech or investor and public relations, please contact Victor Allgeier, TTC Group, 1.646.290.6400, vic@ttcominc.com