SPRING 2017nasdaq gm: artxwww.arotech.com  Investor PRESENTATION  

 Nasdaq: ARTX  2  SAFE HARBOR STATEMENT  This presentation contains forward-looking statements (within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended) regarding Arotech Corporation (Arotech) and/or its subsidiaries, (collective ”the company”), to the extent such statements do not relate to historical or current fact. Forward-looking statements are based on management’s expectations, estimates, projections and assumptions. Forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, as amended. These statements are not guarantees of future performance and involve certain risks and uncertainties, which are difficult to predict. Therefore, actual future results, performance and trends may differ materially from these forward looking statements due to a variety of factors, including, without limitation: 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, 2016, and Arotech’s 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 presentation. The factors listed above are not all-inclusive, and further information is contained in Arotech’s latest annual report on Form 10-K, which is on file with the U.S. Securities and Exchange Commission. All forward-looking statements speak only as of the date of this presentation. Arotech does not undertake to update its forward-looking statements. 

 Nasdaq: ARTX  3  INVESTMENT HIGHLIGHTS  Committed to growthTwo divisions in attractive markets with long term growth programsDiversified customer base… long-standing customer relationships drive repeat businessLeading market positions in attractive end markets with significant barriers to entry Reduced Corporate Cost StructureBoard of Directors focused on growth, operational efficiency and creating long-term shareholder valueSmaller Board and Executive team  Arotech is an innovative engineering solutions company that offers defense & security solutions to government agencies, municipalities & commercial organizations to aid with safety and preparedness 

   Power Systems    Training and Simulation  Business  Innovative design, rapid prototyping & lean manufacturing for aerospace, defense, medical & industrial applications worldwide     World-class simulation- based training solutions for engineering, use-of-force and operator training simulations  Market Size  Global Defense ElectronicsMarket revenues in $10s of Billions    Global Military Simulation & Virtual Training expected to reach $13.8B in 20201  2016 Revenue  $46.6M    $46.4M  % of Revenue  50%    50%  Gross Margin  18%    43%  Nasdaq: ARTX  4  DIVISIONS OVERVIEW  1 Source: Visiongain  

 Nasdaq: ARTX  FINANCIAL OVERVIEW  5  ($ in millions)  Revenue  Adjusted EBITDA  Training & Simulation Power Systems Total Company        7.9% CAGR  Guidance Range$93 - $103(1)  Guidance Range$7.5 - $8.5(1)  (1) 2017 guidance range provided by company as of May 9, 2017. Arotech undertakes no obligation to update its estimates  $62.2  $93.0  $96.6  $103.6  $88.5  $80.1  $103.0  …..VCTS component….. 

 Nasdaq: ARTX  6  DIVERSIFIED REVENUE BASE  Numerous & diverse revenue sourcesTraining and SimulationAir Warfare 18%Military Vehicle 12%MILO 10%Service 4%Comm Vehicle & RTI 6%Power SystemsUS Power Systems 26%Tactical Batteries 20%Life Vest Batteries 4%  2016 Revenue by Division  A well-diversified revenue base from varied, yet complementary products    50%  50%   

 Nasdaq: ARTX  7  TRAINING AND SIMULATION DIVISION    TRAINING AND SIMULATION DIVISIONArotech’s Training and Simulation Division (ATSD) develops and provides an extensive array of trainers and simulators for all kinds of equipment and situations for military, law enforcement and commercial customers. Our simulators safely and economically train people from municipal rail and bus drivers to military pilots and convoy crews to respond immediately and appropriately in threatening and dangerous situations while under extreme pressure.    RESEARCHSIMULATION  AIR WARFARESIMULATION  VEHICLESIMULATORS  JUDGMENTALUSE OF FORCE 

 Nasdaq: ARTX  8  TRAINING AND SIMULATION DIVISION  Market:Security, Defense& TrainingApplications  Product Areas:High speed weapons simulationsJudgmental Use of ForceVehicle driving SIMS – Police, Fire, EMSMilitary Training SIMSResearch SIMS  Customersthat trust Arotech Solutions include: 

 Nasdaq: ARTX  9  TRAINING & SIMULATION – KEY PROGRAMS  Contracting with Lockheed, Boeing, Raytheon, USAF, CubicSignificant awards to continue F-15 and F-16 support in Q1Over 40 active contracts Continually expanded and enhanced as the operational flight programs are updated and new weapons/capabilities are addedNew markets with TA-50 and UAVs  F-16  F-15  F-16  F-22  F-35  F-18  ZAP – Zone Acquisition Process  High Speed Weapon Simulation 

 Nasdaq: ARTX  10  TRAINING & SIMULATION – KEY PROGRAMS  Use of Force training for law enforcement and military customersNew products driving record salesTheater systems launched in 2015 have proven popularLive fire training$40M IDIQ with US Department of State announced last year 

 Nasdaq: ARTX  11  TRAINING & SIMULATION – KEY PROGRAMS  Train route clearance teams to detect and neutralize improvised explosive devices (IEDs)$41M Sole-Source award to FAAC will bring 5 more years of innovation 

 Nasdaq: ARTX  12  POWER SYSTEMS DIVISION    POWER SYSTEMS DIVISIONArotech’s Power Systems Division (APSD) develops and provides sophisticated portable energy solutions designed to complex and demanding customer specifications for diverse applications from vehicle power, clean energy power generation, power distribution and management, military field equipment to life vest lights, satellite radios and unmanned vehicles. Arotech’s solutions are produced primarily for military, aerospace and industrial customers.    UNDERWATER& UAV POWER  TACTICALBATTERIES  HYBRIDPOWER  POWERMANAGEMENT 

 Nasdaq: ARTX  13  POWER SYSTEMS DIVISION  Established and Diverse Customer Base Includes:  Product Areas:Distributed Power ManagementHybrid Power GenerationHigh Energy SystemsSWIPES & RechargeablesC4ISR    Market: MilitaryCommercialMedical  MR-2791 

 14  Water Activated Batteries  POWER SYSTEMS – KEY PROGRAMS 

 Nasdaq: ARTX  15  POWER SYSTEMS – KEY PROGRAMS  Distributed Power Control and Monitoring System (DPCMS)   Successfully integrated on USMC AAV Real-Time Diagnostics & PrognosticsMakes AAV platform viable until 2035 - twenty years beyond its acquisition lifecycle. Configurable Power Distribution System Positioned to be New Standard for Military Vehicles – Dual Redundant, Intelligent Power Management 

 Nasdaq: ARTX  16  POWER SYSTEMS – KEY PROGRAMS  GREENS Gen IPrototype DeliverySep 2010  GREENS Gen ILRIP DeliveryMar 2011  GREENS Gen IIFRPJul 2012 – Dec 2014  MHEESConcept RefinementJan 2015  MHEES DeliverySep 2015  2010  2011  2012  2013  2014  2015  2016  2017  MEHPS Delivery Summer 2017  • Lightweight, compact, man portable renewable power solution• Collects and stores solar energy and converts it to clean, reliable power• Hybrid capability allows use of a generator with auto-start if desired• Voltage Output: 22-30 VDC• Power Output: 1kW of power and up to five systems can be paralleled together to provide 5kW of power  • Modular, compact, trailer or rack-mountable hybrid power solution• Collects and stores energy from a solar and generator to deliver clean, reliable power• Hybrid system capability intelligently integrates solar and generator power to further reduce fuel consumption• Voltage Output: 1P 120V / 3P 208V 60 Hz or 240V 50 Hz• Power Output: 5kW to 15kWDelivers Hours of Silent Watch  Mobile Electric Hybrid Power Sources – 5kW Solution  GREENS/Hybrid Power 1kW Solution 

 Nasdaq: ARTX  17  CONTACTS  Company ContactArotech CorporationDean Krutty, CEO - krutty@arotechusa.com | (800) 281-0356Investor RelationsArotech CorporationScott Schmidt– scott.schmidt@arotechusa.com | (800) 281-0356