FAAC Incorporated Receives Contract for Air National Guard Boom Operator Simulator Systems valued at up to $25.3 Million

Ann Arbor, Michigan – June 18, 2012 – FAAC Incorporated, part of Arotech Corporation’s (NasdaqGM: ARTX) Training and Simulation Division, has received a $25.3 million contract award for the design, development, production, and delivery of 17 Boom Operator Simulator Systems. This award, from the U.S. Army Program Executive Office for Simulation, Training & Instrumentation (PEO STRI), is a competitive small-business delivery order under the STRI Omnibus Contract known as STOC II. The initial award has funded $4.3M for design and development of a first article with the remaining $21.0M in options expected to be exercised for the production of 16 additional units and up to four years of initial contractor logistical support of the installed systems. The period of performance for the production of the first article and 16 additional units including logistical support is estimated to be 60 months.

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.

“When Air National Guard Boom Operators leave their civilian jobs, don their uniforms and arrive at base for a training session, they need a system that is easy to power up, loaded with meaningful missions that are easily selectable, and has a reliability that produces the utmost confidence that they will receive effective training,” said Kurt Flosky, FAAC Executive Vice President. “Our KC-135 BOSS solution will provide a safe simulated environment designed for operators to learn and train proper procedures with the right fidelity to ensure their skills will transfer to the actual equipment,” concluded Flosky.

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