Arotech Awarded Contract to Develop Lithium Battery for Hybrid

Arotech Awarded Contract to Develop Lithium Battery for Hybrid
Electric Vehicles 
First Prototypes to Be Delivered in the First Quarter of 2013 
ANN ARBOR, MI -- (Marketwire) -- 10/25/12 --   Arotech Corporation
(NASDAQ: ARTX) announced today that its Battery and Power Systems
Division has received an order to develop prototypes for a lithium
battery for hybrid electric vehicles. 
The order to develop three prototype batteries was placed by an
unnamed German automotive supply company. The first prototypes are
due to be delivered in the first quarter of 2013. 
This contract marks Arotech's entry into the fast-growing field of
hybrid electric vehicles. Through the end of September 2012, more
than 5.2 million hybrid electric vehicles had been sold worldwide. 
Arotech has substantial know-how in large format battery technology,
having in the past, under its Electric Fuel name, successfully
developed zinc air batteries that powered electric vehicles more than
250 kilometers in a single discharge.  
"This is our second notable contract for large format lithium ion,
and represents a strategic step to balance our significant and
growing business in the military power sources market," noted Arotech
Chairman and CEO Robert S. Ehrlich. "Having learned important lessons
from our previous foray into the electric vehicle market, we are
determined to minimize risk by only undertaking profitable projects,"
continued Ehrlich. "We believe that between grid storage and electric
vehicles there is significant promise for large format lithium ion.
With our extensive know-how in lithium batteries and their power
management, this is the ideal time for us to enter this emerging
market," concluded Ehrlich.  
About Arotech's Battery and Power Systems Division 
Battery and Power Systems Division is a leading provider of primary
and rechargeable batteries and chargers for defense and other
military applications. Arotech develops and produces high power
zinc-air batteries and is believed to be the sole supplier of this
technology to the U.S. military. In addition, Arotech develops
high-end primary and secondary batteries and associated chargers and
has vast experience in working with government agencies, the military
and large corporations. 
The Battery and Power Systems Division consists of Electric Fuel
Battery Corporation and Epsilor-Electric Fuel Ltd. 
About Arotech Corporation
 Arotech Corporation is a leading provider
of quality defense and security products for the military, law
enforcement and homeland security markets. Arotech provides
multimedia interactive simulators/trainers and advanced zinc-air and
lithium batteries and chargers. Arotech operates through two major
business divisions: Training and Simulation, and Batteries and Power
Arotech is incorporated in Delaware, with corporate offices in Ann
Arbor, Michigan and research, development and production subsidiaries
in Alabama, Michigan 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.
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;
Arotech's ability to remain listed on the Nasdaq Stock Market in
accordance with the Nasdaq's $1.00 minimum bid price and other
continued listing standards; and other risk factors detailed in
Arotech's most recent Annual Report on Form 10-K for the fiscal year
ended December 31, 2011 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. 
Victor Allgeier
TTC Group
(646) 290-6400 
Investor Relations Department
Phone: 1-646-290-6400
TTC Group 
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