Ann Arbor, Michigan – June 12, 2008 — FAAC Incorporated, a subsidiary of Arotech Corporation’s (NasdaqGM: ARTX) Training and Simulation Division, has completed fielding MRAP training capability to the USMC Operator Driving Simulators (ODS) for use by the Marine Corps’ stateside active components ahead of schedule. In December 2007, the U.S. Marine Corps Systems Command, Program Manager for Training Systems (PM TRASYS) modified FAAC’s USMC ODS contract to add MRAP vehicle operator training capability. The MRAP capability was delivered to 29 Palms CA on 25FEB2008, Camp Pendleton CA on 04FEB2008, and Camp Lejeune NC on 13MAR2008. Each location has single and dual simulator trailers capable of training MRAP Cougar Cat I, MK-23 (with and without Armor kit), and up-armored HMMWV operations.

FAAC began work on MRAP training capabilities prior to December 2007 in anticipation of this urgent training need. FAAC was able – both with pre-award internal research & development and extraordinary post-award effort – to work diligently to field the MRAP training capability as soon as possible. In partnership with PMTRASYS, FAAC’s effort included delivery of a dual simulator trailer to 29 Palms seven weeks ahead of schedule. Delivery of simulators and MRAP capabilities is continuing to the Marine Force Reserve and other active elements as part of FAAC’s ongoing contract with PMTRASYS.

“In light of the pressing need to maximize the number of vehicles in theater, these simulators provide the Marine Corps with an effective solution to train MRAP vehicle operators” stated Kurt Flosky, FAAC Executive Vice-President.  “FAAC will continue to invest our research and development funds in support of programs critical to training our service men and women,” concluded Flosky.

 

About Arotech’s Training and Simulation Division
Arotech’s Training and Simulation Division (ATSD) provides world class simulation based training solutions.  ATSD develops, manufactures, and markets advanced high-tech multimedia and interactive digital solutions for engineering, use-of-force, and driver training simulations for 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. The division’s use-of-force training products and services allow organizations to train their personnel in safe, productive, and realistic environments. The division provides consulting and developmental support for engineering simulation solutions. The division also supplies pilot decision-making support software for the F-15, F-16, F-18, and JSF aircraft, as well as simulation models for the ACMI/TACTS air combat training ranges.

Arotech’s Training and Simulation Division consists of FAAC Incorporated (faac.com), IES Interactive Training Inc. (www.ies-usa.com), and Realtime Technologies, Inc. (www.simcreator.com).

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: Training and Simulation, Armor, and Battery and Power Systems.

Arotech is incorporated in Delaware, with corporate offices in Ann Arbor, Michigan, and research, development and production subsidiaries in Alabama, Michigan, and Israel. For more information on Arotech, please visit Arotech’s website at www.arotech.com.

Contact

For more information on FAAC Incorporated and military products, please contact Todd Glenn at 1.352.343.6606 (todd.glenn@faac.com), or visit FAAC’s website at faac.wpengine.com.

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

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. 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; and other risk factors detailed in Arotech’s most recent Annual Report on Form 10-K for the fiscal year ended December 31, 2007, 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.