Arotech Receives $10 million David Order

Arotech Backlog now at $42 million

June 29, 2009 - Arotech Corporation (NasdaqGM: ARTX) announced today that its Armor Division has received a new order valued at $10 million for its David Light Armored Vehicle.

This order includes an option on the part of the purchaser for a similar number of additional vehicles, and was received three weeks after the Company announced a separate $2 million order for Davids. With these orders, Arotech’s backlog stands at $42 million.

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 Forces 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 the lives of its occupants.

“This is another major order for MDT,” said Robert Ehrlich, Arotech’s Chairman and CEO. “The David has proven itself both in battlefield operations and as a strong product line for the Armor Group.”

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.armourofamerica.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 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; 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. Refer-ence to the Company’s website above does not constitute incorporation of any of the information thereon into this press release.