SOURCE: Arotech

Arotech

June 22, 2009 08:00 ET

Arotech's FAAC Incorporated Receives Subcontract Valued at $12.8 Million to Help Support US Army Common Driver Trainer Mobile Training Facilities

ANN ARBOR, MI--(Marketwire - June 22, 2009) - FAAC Incorporated, part of Arotech Corporation's (NASDAQ: ARTX) Training and Simulation Division, has received a subcontract valued at $12.8M for Mobile Training Facilities (MTF) as part of the US Army's Common Driver Trainer (CDT) Program. Under subcontract to Science Applications International Corporation (SAIC) (NYSE: SAI), the prime contractor for the Army's Common Driver Trainer (CDT) program, FAAC's effort covers the design and development of a mobile, trailer-mounted, solution for CDT and the production of thirteen units. The CDT Mobile Training Facilities will be delivered to SAIC, who is adding the capability for Mine Resistant Ambush Protected (MRAP) training prior to fielding.

The FAAC-supplied CDT MTF provides the complete CDT infrastructure in a mobile configuration -- consisting of computational environment, full-motion platform, visual display system, and instructor/after-action-review stations. The custom 53-foot trailer is designed with expandable sides to provide the necessary space for CDT operations, along with complete self-contained HVAC & power generation or optional shore power connection. The CDT MTF is compatible with FAAC's previously-delivered CDT Stryker Variant crew station and the SAIC-developed MRAP cab.

FAAC has been working CDT MTF since receiving authorization to proceed from SAIC in October 2008, in response to the U.S. Army PEO Simulation, Training and Instrumentation's (PEO STRI) urgent need requirement to provide CDT Mobile Training Facility (MTF) systems to the U.S. Army.

"The Army provided an aggressive timeline for production delivery of the first-ever full motion Common Driver Simulator in a mobile configuration to make much-needed operator training available to our soldiers deploying as soon as possible," noted Kurt Flosky, FAAC Executive Vice President. "We are proud to have completely satisfied the Army's expectations for the first CDT MTF units and to be in position to support SAIC in accelerated deliveries of this urgent operational training asset."

About Arotech's Training and Simulation Division

Arotech's Training and Simulation Division (ATSD) provides world-class simulation based training solutions. 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, security, 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 operation. The division's use-of-force training products and services allow organizations to train their personnel 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 Interactive Training (www.ies-usa.com), and Realtime Technologies, Inc. (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, lightweight armoring and advanced zinc-air and lithium batteries and chargers. Arotech operates through three major business divisions: Training and Simulation, Armor, and Battery and Power Systems.

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

Contact

For more information on FAAC Incorporated and military products, please contact Todd Glenn at 1.352.343.6606 (todd.glenn@faac.com), or visit FAAC's website at www.faac.com.

For more information on Arotech or investor and public relations, please contact Victor Allgeier, TTC Group, 1.646.290.6400, vic@ttcominc.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; dilution resulting from issuances of Arotech's common stock upon conversion or payment of its outstanding convertible debt, which would be increasingly dilutive if and to the extent that the market price of Arotech's stock decreases; and other risk factors detailed in Arotech's most recent Annual Report on Form 10-K for the fiscal year ended December 31, 2008 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.

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