SPRING 2018nasdaq 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, 2017, 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  AROTECH CORPORATION  Arotech Corporation is a global leading provider of quality defense and security products for the military, law enforcement and homeland security markets, including multimedia interactive simulators/trainers and advanced power supplies, batteries and chargers.  

 Nasdaq: ARTX  4  INVESTMENT HIGHLIGHTS  Committed to growthLeading market positions in attractive end markets with significant barriers to entryGrowth drivers are in place and select opportunities could lead to significant growth Reduced Corporate Cost StructureBoard of Directors and management focused on growth, operational efficiency and creating long-term shareholder valueSmaller Board and Executive teams 

 Nasdaq: ARTX  5  DIVERSIFIED REVENUE BASE  Numerous & diverse revenue sourcesTraining and SimulationAir Warfare 38%Vehicle Simulation 27%Use-of-Force 28%Warranty 6%Power SystemsContract Manufacturing 27%Power Distribution & Generation 14%Batteries 44%Engineering Services 12%  2017 Revenue by Division  A well-diversified revenue base from various, yet complementary products    51%  49%   

   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 worth 10s of Billions    Global Military Simulation & Virtual Training expected to reach $13.8B in 20201  2017 Revenue  $48.4M    $50.3M  % of Revenue  49%    51%  Gross Margin  15%    42%  Nasdaq: ARTX  6  DIVISIONS OVERVIEW  1 Source: Visiongain  

 Nasdaq: ARTX  7  FINANCIAL OVERVIEW  ($ in millions)  Revenue  Adjusted EBITDA  Training & Simulation Power Systems Total CompanyIncremental Revenue over 2018 Incremental Revenue over 2018 Estimate         Guidance Range$7.0 - $8.0(1)  (1) Guidance range provided by company as of May 14, 2018. Arotech undertakes no obligation to update its estimates. Please see Safe Harbor Statement on page 2 above.  Guidance Range$100 - $105(1)  VCTS  DPCMS  MEHPS  CDT  CDT  VCTS  DPCMS        

 Nasdaq: ARTX  8  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  9  TRAINING AND SIMULATION DIVISION  Military Vehicle Simulators  Research Simulation  Air Warfare Simulations  Commercial/Municipal Vehicle Simulators  Judgmental Use of Force              Description  Provides high fidelity vehicle simulators for use in operator training for every wheeled vehicle platform in the U.S. military  Designs and manufactures vehicle simulators for use in municipal end markets such as EMS, fire and police  Provides weapon simulations used to train military pilots in the effective use of air-launched weapons, mostly for classified customers  Provides training products focused on the proper employment of hand-carried weapons, primarily for law enforcement personnel  Specializes in multi-body vehicle dynamics modeling and graphical simulation for research and development solutions  Key Customers  U.S. ArmyU.S. Marine CorpsDepartment of Homeland Security  CAPOSTDHSNew York CityCity of TorontoCity of LondonWashington, DC  U.S. Air ForceU.S. Air National GuardU.S. Navy RaytheonLockheed MartinCubicBoeingTaiwan  DHSFBIMost major U.S. municipalities (800 systems)Hong KongEmerging international markets  Major automotive companiesLarge, universities, including University of Minnesota, Beijing Jiaotong University, and University of Michigan, The Ohio State  Key Products  VCTSCDTODSMTVR  PoliceBusRailFire & rescue  ZAP Training Range SoftwareMACEBOSS  MILOFDU  SimCreator SimVistaSimObserverResearch Simulators 

 Nasdaq: ARTX  10  TRAINING & SIMULATION – KEY PROGRAMS  Contracting with Lockheed, Boeing, Raytheon, USAF, CubicMulti-year software support contractsActive every year on all platformsContinually expanded and enhanced as the operational flight programs are updated and new weapons/capabilities are addedNew markets with Aggressor Squadrons, TA-50 and UAVs  ZAP – Zone Acquisition Process  High Speed Weapon Simulation  F-15  F-22  F-35  F-18  F-16 

 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 innovation3 Phase Program with largest phase beginning in Q4 2018Common Driver Trainer program to award in Q2 2019  

 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 SystemsLithium RechargeableC4ISR    Market: MilitaryMedical 

 Nasdaq: ARTX  14  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. Currently manufacturing Low Rate Initial Production Full rate production to begin summer of 2019.  PDM  PCM 

 Nasdaq: ARTX  15  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 Q4 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 WatchMarine Corps estimates for production at $80M+  Mobile Electric Hybrid Power Sources – 5kW+ Solution  GREENS/Hybrid Power 1kW Solution 

 Nasdaq: ARTX  16  CONTACTS  Company ContactArotech CorporationDean Krutty, CEO - krutty@arotechusa.com | (800) 281-0356Investor RelationsArotech CorporationScott Schmidt– scott.schmidt@arotechusa.com | (800) 281-0356