Arotech and Israel Military Industries Ltd (IMI) to Jointly
Market the David

The Land Rover-based armored David is widely used by Israel’s military

October 6, 2009 - Arotech Corporation (NasdaqNM: ARTX) announced today that its Armor Division has signed a agreement with Israel Military Industries Ltd (IMI) to jointly market the MDT David in markets worldwide. IMI’s Land Systems Division has been specializing in development, integration and production of combat proven systems for Main Battle Tanks (MBT) and Armored Personnel Carriers to the Israel Defense Forces (IDF) and selected customers around the world. Drawing on its worldwide armor marketing network, IMI will now also be able to offer a lightweight combat vehicle with extensive IDF experience – The David.

The David is a lightweight armored vehicle based on a Land Rover heavy duty Defender platform. The David has been selected by the Israel Defense Force (IDF) as its standard armored reconnaissance and patrol vehicle, and is operating hundreds of them already.

The David has been involved in numerous terror attacks, withstanding assault weapons and various explosive devices, saving lives of its occupants.

The Agreement does not cover areas were MDT is currently actively involved, such as the US, India and Israel. The Agreement was signed yesterday at the Arotech display at the Annual Meeting of the Association of the US Army (AUSA) in Washington DC. Arotech’s Armor Group’s AUSA display includes the David and other armor products.

“The David has proven itself time and again,” said Robert Ehrlich, Arotech’s Chairman and CEO. “With this joint marketing program we will be able to offer the David to customers worldwide.”

About Israel Military Industries Ltd (IMI)
IMI is located in Ramat Hasharon, Israel and provides a broad range of vehicle protection system solutions. IMI is a diversified, high-technology company specializing in the development, manufacturing and deployment of wide range of state-of-the-art combat-ready solutions. More information about IMI can be found at www.imi-israel.com
IMI's armor solutions are on display at IMI stand #3624, at the Annual AUSA Convention in Washington DC October 4-7, 2009

About Arotech's Armor Division
Arotech’s Armor Division is an innovative leader in lightweight armoring for vehicles, aircraft and their operators. The Armor Division has years of battlefield and commercial protection experience and has provided life saving protection under the most extreme conditions.

Arotech’s Armor Division consists of MDT Armor Corporation (www.mdt-armor.com), M.D.T. Protective Industries, Ltd. (www.mdtisrael.com), and Armour of America (www.aoa-usa.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. Arotech provides multimedia interactive simulators/trainers, lightweight armoring and advanced zinc-air and lithium batteries and chargers. Arotech operates through three major business divisions: Armor, Training and Simulation, and Batteries 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.

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, including the effect of any share re-purchases by Arotech. Forward-looking statements reflect management’s current knowledge, assumptions, judgment and expectations regarding future performance or events. Although management believes that the expectations re-flected 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; dilution resulting from issuances of Arotech’s common stock upon conversion or payment of its outstanding convertible debt, which would be increasingly dilutive if and to the extent that the market price of Arotech’s stock decreases; and other risk factors detailed in Arotech’s most recent Annual Report on Form 10-K for the fiscal year ended December 31, 2008 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.