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November 06, 2012

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Arotech’s IES Interactive Training (IES) Receives Contract from Hong Kong Police Force for Live-Fire Simulation Training Systems Valued at up to $3.8M

Ann Arbor, Mich. – Arotech Corporation (NasdaqGM: ARTX) an-nounced today that its Training and Simulation Division’s IES Interactive Training unit was se-lected to supply modern interactive laser and live-fire firearms training simulators to the Hong Kong Police Force. The contract calls for the delivery, installation, and support of IES’s exclu-sive MILO Range Firearms Training Simulators with live-fire capability into 34 mini-ranges for training various tactical and educational units of the Hong Kong Police Forces. The contract is valued at $3.8M. The competitive contract award was issued by the Government Logistics De-partment of the Government of the Hong Kong Special Administrative Region of the People’s Republic of China.

The comprehensive selection process included a thorough validation of system capabilities and features, an evaluation of past performance & company history, and a scored demonstration of full compliance with highly detailed performance specification which stressed requirements for accuracy & realism. At the end of the competition, IES and the MILO Range system met and passed all graded requirements with sufficient points to merit receiving the award.

“We are pleased that IES was selected for this competitive contract award from such a highly re-garded organization as the Hong Kong Police Force,” said Robert McCue, IES’s General Manager. “IES’s MILO Range laser-based training simulators have long been the de facto system of choice for law enforcement and public safety agencies in the United States, Europe, and Latin America. Now that the technical and training experts within the Hong Kong Police Force have selected MILO to satisfy their live-fire simulation training requirements, we are in position to ex-tend the benefits of IES MILO training throughout Asia,” McCue noted.

The first deliveries under this contract will begin in Q4 2012 and continue in phases over a 24-month period. The contract has exercisable provisions for system support and maintenance over a ten-year period.

About Arotech’s Training and Simulation Division
Arotech’s Training and Simulation Division (ATSD) provides world-class simulation based training solu-tions. ATSD develops, manufactures, and markets advanced high-tech multimedia and interactive digital solutions for engineering, use-of-force, and driver training simulations for military, law enforcement, se-curity, municipal and private industry personnel. The division’s fully interactive driver-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, and conscientious equipment opera-tion. The division’s use-of-force training products and services allow organizations to train their person-nel in safe, productive, and realistic environments. The division provides consulting and developmental support for engineering simulation solutions. The division also supplies pilot decision-making support software for the F-15, F-16, F-18, F-22, and F-35 aircraft, as well as simulation models for the ACMI/TACTS air combat training ranges.

Arotech’s Training and Simulation Division consists of FAAC Incorporated (www.faac.com), IES Inter-active Training (www.ies-usa.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 ad-vanced zinc-air and lithium batteries and chargers. Arotech operates through two major business divi-sions: Training and Simulation and Battery and Power Systems.
Arotech is incorporated in Delaware, with corporate offices in Ann Arbor, Michigan, and research, devel-opment and production subsidiaries in Alabama, Michigan, and Israel. For more information on Arotech, please visit Arotech’s website at www.arotech.com.

For more information on IES Interactive Training 1.800.344.1707 or visit our website at www.ies-usa.com.

For more information on Arotech or investor and public relations, please contact Victor Allgeier, TTC Group, 1.646.290.6400, vic@ttcominc.com

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