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Police Training Products Press Release

October 23, 2007

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Arotech Training and Simulation win orders from U.S. Department of Homeland Security

ANN ARBOR, Mich—Arotech Corporation's Training and Simulation Division in Ann Arbor, Mich., announced new U.S. Department of Homeland Security (DHS) orders totaling more than $3.2 million from Arotech's IES Interactive Training subsidiary. One prominent DHS agency in particular has procured 55 of IES's MILO Range simulation systems over the past 12-month period. This surpasses IES's previous largest single order from the Los Angeles Police Department for 25 systems in 2006.

Arotech's Training and Simulation Division develops, manufactures, and markets advanced high-tech multimedia and interactive digital solutions for use-of-force and driver training of military, law enforcement, security, municipal, and private industry personnel.

The division's interactive driver-training systems feature vehicle simulator technology enabling training in situation awareness, risk analysis and decision-making, emergency reaction, and avoidance procedures, and conscientious equipment operation. In addition, the division's useof-force training products and services allow organizations to train their personnel in safe, productive, and realistic environments. The division also provides pilot decision-making support software for the F-15, F-16, F-18, and JSF aircraft, as well as simulation models for the ACMI/TACTS air combat training ranges.

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Arotech's Training and Simulation Division consists of FAAC Incorporated and IES Interactive Training Inc.