Ann Arbor, Michigan – August 8, 2017 – FAAC Incorporated, a part of Arotech Corporation’s [NasdaqGM: ARTX] Training and Simulation Division, announced that it has received a sole source contract for its Army National Guard Operator Driving Simulators. The General Services Administration contract from the National Guard Bureau is valued at $10.5M, with a period of performance of two years.

This award builds upon FAAC’s previous Army National Guard Operator Driving Simulator (ARNG ODS) efforts, which began in 2006 and have resulted in the fielding of a total of 27 training systems to 25 different states. The current effort procures nine new multi-simulator mobile systems and provides capability enhancements for 16 of the currently fielded systems.

The ARNG ODS educates soldiers on the operation of a variety of military vehicles.  The ARNG ODS supports the training of vehicle operators of the M915 and M939 trucks, the family of Medium Tactical Vehicles (FMTV), the Heavy Expanded Mobility Tactical Truck (HEMTT), the Palletized Load System (PLS) and the Heavy Equipment Transport System (HETS), the M1114 High Mobility Multipurpose Wheeled Vehicle (HMMWV), the Mine Resistant Ambush Protected vehicle (MRAP) and the MRAP All-Terrain Vehicle (MATV). The ARNG ODS provides student operators with a realistic and high fidelity operational experience for both on-road and off-road conditions in multiple physical and weather environments.

“We are honored to have been selected to continue our support of the Army National Guard’s Operator Driving Simulator program. We are especially pleased that the fielded systems have validated these additional requirements and that we are in position not only to expand the National Guard’s training capacity but also to update legacy systems with current technology and increased capabilities,” said Todd Glenn, FAAC’s Executive Director of Military Business Development.

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 (faac.com), MILO Range Training Systems (milorange.com), and Realtime Technologies (simcreator.com).

About Arotech Corporation

Arotech Corporation is a defense and security products and services company, engaged in two business areas: interactive simulation for military, law enforcement and commercial markets; and mobile power systems for the military, commercial and medical markets.

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 arotech.com.

Investor Relations Contact:

Scott Schmidt

Scott.Schmidt@arotechusa.com

800-281-0356

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, 2016 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.