FAAC Incorporated Announces Expansion

FAAC Incorporated recently announced an expansion of their facility in Pittsfield Township. As part of the expansion, FAAC Incorporated, part of Arotech Corporation’s (NasdaqGM: ARTX) Training and Simulation Division, has acquired a 40,000 square foot facility and is expected to immediately add 10 jobs.

With the support of Ann Arbor SPARK, FAAC was awarded a multi-year Industrial Facilities Tax incentive. The incentive helps FAAC expand into its new facility and add revenue to the local community’s tax base.

“Ann Arbor SPARK’s business retention and expansion team worked with Pittsfield Township to help FAAC secure a tax incentive,” said Paul Krutko, president and CEO of Ann Arbor SPARK. “The jobs that the company will create are exactly the high tech jobs that attract and retain talent in our region. It’s exciting to see FAAC choose to expand and create jobs here in the Ann Arbor area.”

“The opportunity to expand operations within a short drive from our current campus made Pittsfield Township the obvious choice. Ann Arbor SPARK provided insight into the assistance programs available and helped with the Industrial Facilities Tax incentive application process, including making the proper introductions with township personnel and supporting us at the public hearing which approved our request,” said Kurt Flosky, FAAC executive vice president. “We are excited to be in a position to grow and expand our presence in the Ann Arbor area.”

FAAC’s recent expansion was spurred by the company’s $64 million project award from the U.S. Army. The contract is for the design, development, production and delivery of 28 of the company’s Virtual Clearance Training Suites (VCTS). The VCTS will simulate a wide array of technical devices, including purpose-built mine-protection and clearing vehicles used by the U.S. Army to combat improvised explosive devices.

FAAC will begin the expansion at its facility in November and expects the expansion to complete in early 2012.

Except for the historical information herein, the matters discussed in this news release, including the earnings guidance for 2011, 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, 2010 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 websites above does not constitute incorporation of any of the information thereon into this press release.