Arotech Reverse Stock Split and Warrant Issuance Proposals Receive Overwhelming Approval from Stockholders; One-for-Fourteen Reverse Stock Split to Take Effect at the Opening of Trading on June 21

Arotech Corporation (NasdaqNM: ARTX) announced today that at itsannual meeting of stockholders held this morning in New York, NewYork, Arotech's stockholders overwhelmingly approved proposals toeffect a one-for-fourteen reverse split of Arotech's common stock, andto ratify, for purposes of NASD Marketplace Rule 4350(i)(1)(C)(ii),the issuance in February, March and April of 2006 of warrants expiringMarch 31, 2008 to purchase up to 4,175,071 shares of Arotech's commonstock at a price of $0.594 per share (approximately 298,220 sharesafter giving effect to the reverse split).

The resolution ratifying the reverse stock split received thesupport of over 88% of the total votes cast in person and by proxy onthe proposal, being a majority of all outstanding shares of Arotech'scommon stock entitled to vote on this proposal as required by Delawarelaw.

The resolution ratifying the warrant issuance received the supportof over 65% of the total votes cast in person and by proxy on theproposal.

Stockholders also overwhelmingly re-elected directors Jay M.Eastman and Steven Esses.

The one-for-fourteen reverse stock split will take effect themorning of Wednesday, June 21, 2006. Pursuant to the rules of theNasdaq Stock Market, Arotech's stock ticker symbol will change fromARTX to ARTXD beginning on Wednesday, June 21 through and includingWednesday, July 19 (a period of twenty business days). The symbol willrevert back to ARTX beginning with the opening of trading on Thursday,July 20, 2006.

"We appreciate this tremendous stockholder support for our growthand share capital management objectives," said Robert S. Ehrlich,Chairman and CEO of Arotech. "We will work hard to justify ourstockholders' confidence."

About Arotech Corporation

Arotech Corporation is a leading provider of quality defense andsecurity products for the military, law enforcement and homelandsecurity markets, including multimedia interactivesimulators/trainers, lightweight armoring and advanced zinc-air andlithium batteries and chargers. Arotech operates through three majorbusiness divisions: Armor, Simulation and Training and Battery andPower Systems.

Arotech is incorporated in Delaware, with corporate offices in AnnArbor, Michigan, and research, development and production subsidiariesin Alabama, Colorado, Michigan, California and Israel.

Except for the historical information herein, the mattersdiscussed in this news release include forward-looking statements, asdefined in the Private Securities Litigation Reform Act of 1995,including Arotech's ability to meet the conditions set forth in thedecision of the Nasdaq Listing Qualifications Panel. The words"believes," "anticipates," "expects," "estimates" and similarexpressions are intended to identify such forward-looking statements.Forward-looking statements reflect management's current knowledge,assumptions, judgment and expectations regarding future performance orevents. Although management believes that the expectations reflectedin such statements are reasonable, readers are cautioned not to placeundue reliance on these forward-looking statements, as they aresubject to various risks and uncertainties that may cause actualresults to vary materially. These risks and uncertainties include, butare not limited to, risks relating to: the ineffectiveness ofArotech's internal control over financial reporting and disclosurecontrols and procedures; product and technology development; theuncertainty of the market for Arotech's products; changing economicconditions; delay, cancellation or non-renewal, in whole or in part,of contracts or of purchase orders; Arotech's ability to remain listedon the Nasdaq Stock Market in accordance with the Nasdaq's $1.00minimum bid price and other continued listing standards; dilutionresulting from issuances of Arotech's common stock upon conversion orpayment of its outstanding convertible debt, which would beincreasingly dilutive if and to the extent that the market price ofArotech's stock decreases; and other risk factors detailed inArotech's most recent Annual Report on Form 10-K for the fiscal yearended December 31, 2005, as amended, and other filings with theSecurities and Exchange Commission. Arotech assumes no obligation toupdate the information in this release. Reference to Arotech's websiteabove does not constitute incorporation of any of the informationthereon into this press release.