(ARTX) Wins Marine Corps Contract, $40 Million IDIQ Award

UEC Electronics Mobile Electric Hybrid Power Sources (MEHPS) Systems to provide Marine Corp with more efficient portable solution

ANN ARBOR, Mich., April 20, 2016  — Arotech Corporation (Nasdaq GM: ARTX) today announced that its U.S. Power Systems Division, UEC Electronics, has recently received a $2.6 million contract from the Marine Corps to design, develop and deliver four MEHPS systems.

MEHPS portable solutions combine battery technology with existing generator and solar solutions to power forward deployed units. The MEHPS product harnesses solar power and intelligently reduces run-time on generators, reducing fuel consumption and extending generator life.

“The Department of Defense continues to advance initiatives that will increase energy efficiency and enable our forces to perform missions, while acknowledging energy as a potential vulnerability,” said Steven Esses, President and CEO of Arotech. “Demand for renewable and hybrid energy power generation systems continues to grow and Arotech is well positioned to capitalize on a significant opportunity. This contract award is a testament to our team and the performance of our product. We are excited about this opportunity and are optimistic that this award could lead to additional orders in the future.”

UEC Electronics previously designed and developed a smaller hybrid power solution for the Marine Corps. The 1kW Ground Renewable Expeditionary Energy Network System (GREENS) is now being produced by UEC under a $40.8 million IDIQ contract.

This latest MEHPS award is for a scalable (up to 15kW) design for use at forward operating bases and is a significant part of the DoD’s strategy to reduce fuel consumption by 25% prior to 2025. The Marine Corp’s roadmap calls for MEHPS production beginning in 2018.

International customers are watching the MEHPS program as well.  MEHPS was one of four “pathfinder” projects announced by Prime Minister Modi (India) and President Obama in January 2015 under the Defense Technology and Trade Initiative.

About Arotech’s Power Systems Division
Arotech’s Power Systems Division is a leading provider of primary and rechargeable batteries and chargers for defense and other military applications and of electronic components and subsystems primarily for military, aerospace and industrial customers. 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, as well as (i) hybrid power generation systems, (ii) smart power subsystems for military vehicles and dismounted applications, and (iii) aircraft and missile systems support for cutting-edge weapons and communications technologies, and has vast experience in working with government agencies, the military and large corporations. The Power Systems Division consists of Electric Fuel Battery Corporation (www.efbpower.com), Epsilor-Electric Fuel Ltd. (www.epsilor.com; www.electric-fuel.com), and UEC Electronics, LLC (www.uec-electronics.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 two major business divisions: Training and Simulation, and Power Systems.

Arotech is incorporated in Delaware, with corporate offices in Ann Arbor, Michigan, and research, development and production subsidiaries in Michigan, South Carolina, and Israel. For more information on Arotech, please visit Arotech’s website at www.arotech.com.

U.S. Power Systems Division Contact:

Nancy Straight
Business Development Manager
843-552-8682
nancystraight@uec-electronics.com

Arotech Investor Relations Contacts:

Brett Maas / Rob Fink
Hayden IR
(646) 536.7331 / (646) 415.8972
ARTX@haydenir.com

Arotech Training and Simulation Division Announces IDIQ Award Valued at up to $40 Million

ANN ARBOR, Mich., April 20, 2016  — Arotech Corporation [Nasdaq GM: ARTX] announced that its Training and Simulation Division (ATSD) has received an Indefinite Delivery Indefinite Quantity (IDIQ) award with a potential value of up to $40M for its MILO Range Training Systems’ simulator products. The multiple-award contract is for the provision of law enforcement training simulators and related equipment and services to the U.S. Department of State in support of its Bureau of International Narcotics and Law Enforcement Affairs (INL) training mission. INL works to keep Americans safe at home by countering international crime, illegal drugs, and instability abroad. INL provides training and assistance in all aspects of police, corrections and justice systems tailored to the specific environment, legal framework, and identified requirements of each partner nation.  MILO Range Training Systems was one of two awardees following a competitive full and open solicitation.  The Period of performance is five years and includes MILO Range Theater multi-screen and MILO Range portable solutions.

“We are thrilled with this award, which solidifies our long standing position as a supplier to the Department of State for our award winning MILO Range Training Systems,” commented Robert McCue, MILO Range Training Systems General Manager. “This highly competitive procurement further validates our position as a global leader in the international law enforcement judgmental skills simulator market, and provides a streamlined acquisition process to deliver this important training capability to the various organizations supported by the U.S. Department of State.”

About Arotech’s Training and Simulation Division

Arotech’s Training and Simulation Division (ATSD) provides world-class simulation based solutions. ATSD develops, manufactures, and markets advanced high-tech multimedia and interactive digital solutions for engineering, use-of-force, and operator training simulations for military, law enforcement, security, municipal and private industry personnel. The division’s fully interactive operator 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, conscientious equipment operation, and crew coordination. The division’s use-of-force training products and services allow organizations to train their personnel in safe, productive, and realistic environments. The division supplies pilot decision-making support software for the F-15, F-16, F-18, F-22, and F-35 aircraft, simulation models for the ACMI/TACTS air combat training ranges, and Air-Refueling Boom Arm simulators. The division also provides consulting and developmental support for engineering and research simulation solutions.

Arotech’s Training and Simulation Division consists of FAAC Incorporated (www.faac.com), MILO Range Training Systems (www.milorange.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 two major business divisions: Training and Simulation, and Power Systems.

Arotech is incorporated in Delaware, with corporate offices in Ann Arbor, Michigan, and research, development and production subsidiaries in Michigan, South Carolina, and Israel. For more information on Arotech, please visit Arotech’s website at www.arotech.com.

Investor Relations Contacts:

Brett Maas / Rob Fink
Hayden IR
(646) 536.7331 / (646) 415.8972
ARTX@haydenir.com

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, 2015 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.