(ARTX) Battery Division Announces Successful Lab Test of Iron Flow Battery for Grid Storage

The market for flow batteries is expected to exceed $400 billion by 2020 Arotech’s battery offers promise of substantial benefits over current technologies

ANN ARBOR, Mich., March 6, 2014  — Arotech Corporation (NasdaqGM: ARTX), a provider of quality defense and security products for the military, law enforcement and homeland security markets, announced today that its Battery and Power Systems Division has advanced its development of an iron flow battery to provide storage for grid power, following promising results in lab tests. Arotech has filed a patent application covering this new technology.

The highly variable supply of electricity generated from renewable sources requires a buffer for the relatively flat demand for energy. Arotech believes it has developed a potentially revolutionary new technology that can combine highly significant cost savings, performance advantages and potentially greater efficiency, with a more environmentally-friendly profile.

Robert S. Ehrlich, Arotech’s Chairman and Chief Executive Officer commented, “We are very pleased with the results from lab tests on this new technology, which opens a huge new market for us. While flow batteries themselves are not new technologies, with over fifty flow batteries installed globally as at the end of last year, our design uses a patent-pending iron chemistry providing the highest ROI, with the lowest total lifecycle, capital and maintenance costs. While this will be a multi-year development effort until commercialization, we believe that given the sheer size of the market, which is expected to exceed $400 billion by 2020, this is a project highly worthy of our R&D investment. I applaud the capabilities of our R&D team in their ongoing development and ability to push the realms of possibility in the battery space.”

Arotech has posted a more detailed competitive analysis online at the following link: http://gkir.us/flowbattery.pdf

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 advanced zinc-air and lithium batteries and chargers. Arotech operates two major business divisions: Training and Simulation 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.

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, 2012, as amended, 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.