Arotech's Battery & Power Systems Division Receives Orders In Excess Of $5 Million

ANN ARBOR, Mich., May 5, 2014 -- Arotech Corporation (Nasdaq GM: ARTX), a provider of quality defense and security products for the military, law enforcement and homeland security markets, announced that it has received new orders from military customers amounting to $5.2 million. These orders will be delivered to customers during the remainder of 2014.

Robert S. Ehrlich, Arotech's Chairman and Chief Executive Officer commented, "Our battery division is having a very exciting year so far. We have seen important R&D developments such as our progress with the iron flow battery, the highly accretive acquisition of UEC, as well as continued order momentum. Some of these recent orders were from leading global defense manufacturers that continue to purchase from us, demonstrating their trust in the reliability and quality of our products for use in a rugged military environment."

Continued Mr. Ehrlich, "In only a few weeks since the close of the acquisition, UEC has already proven itself as a highly complementary business to our Battery and Power Systems Division. Our combination has already opened up new market opportunities for us and we are realizing some strong synergies particularly in our sales and marketing efforts. As we continue our work in assimilating UEC into Arotech, I am becoming ever more excited with regard to the growth potential within our battery division over the coming years."

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, South Carolina and Israel.

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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 (including as a result of budgetary cuts resulting from automatic sequestration under the Budget Control Act of 2011); and other risk factors detailed in Arotech's most recent Annual Report on Form 10-K for the fiscal year ended December 31, 2013 and in Exhibit 99.3 to Arotech's Current Report on 8-K, filed on April 1, 2014, 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.