Arotech's IES Interactive Training (IES) Receives Contract From

Arotech's IES Interactive Training (IES) Receives Contract From Hong
Kong Police Force for Live-Fire Simulation Training Systems Valued at
up to $3.8M 
Prestigious International Win Places IES at the Forefront of
Live-Fire Simulation System Technology 
ANN ARBOR, MI -- (Marketwire) -- 10/31/12 --  Arotech Corporation
(NASDAQ: ARTX) announced today that its Training and Simulation
Division's IES Interactive Training unit was selected to supply
modern interactive laser and live-fire firearms training simulators
to the Hong Kong Police Force. The contract calls for the delivery,
installation, and support of IES's exclusive MILO Range Firearms
Training Simulators with live-fire capability into 34 mini-ranges for
training various tactical and educational units of the Hong Kong
Police Forces. The contract is valued at $3.8M. The competitive
contract award was issued by the Government Logistics Department of
the Government of the Hong Kong Special Administrative Region of the
People's Republic of China.  
The comprehensive selection process included a thorough validation of
system capabilities and features, an evaluation of past performance &
company history, and a scored demonstration of full compliance with
highly detailed performance specification which stressed requirements
for accuracy & realism. At the end of the competition, IES and the
MILO Range system met and passed all graded requirements with
sufficient points to merit receiving the award. 
"We are pleased that IES was selected for this competitive contract
award from such a highly regarded organization as the Hong Kong
Police Force," said Robert McCue, IES's General Manager. "IES's MILO
Range laser-based training simulators have long been the de facto
system of choice for law enforcement and public safety agencies in
the United States, Europe, and Latin America. Now that the technical
and training experts within the Hong Kong Police Force have selected
MILO to satisfy their live-fire simulation training requirements, we
are in position to extend the benefits of IES MILO training
throughout Asia," McCue noted. 
The first deliveries under this contract will begin in Q4 2012 and
continue in phases over a 24-month period. The contract has
exercisable provisions for system support and maintenance over a
t
en-year period.  
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, F-22, and F-35 aircraft, as well
as simulation models for the ACMI/TACTS air combat training ranges. 
Arotech's Training and Simulation Division consists of FAAC
Incorporated (www.faac.com), IES Interactive Training
(www.ies-usa.com), and Realtime Technologies (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 and advanced zinc-air and lithium
batteries and chargers. Arotech operates through two major business
divisions: Training and Simulation 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 IES Interactive Training
1.800.344.1707 or visit our website at www.ies-usa.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, including any earnings guidance, 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 websites above does not
constitute incorporation of any of the information thereon into this
press release. 
Investor Relations 
Phone: 1-646-290-6400
TTC Group