Arotech Corporation

UEC Electronics Wins Navy Contract for Technical Services

August 17, 2016

Hanahan, South Carolina - August 17, 2016 -UEC Electronics is awarded Seaport-e contract. UEC Electronics joins 2,884 other companies providing support to the Navy across 22 functional areas including IT support, research and development, systems engineering, modeling and simulation, software engineering, quality assurance, and other technical areas. UEC Electronics' award was a result of the Navy's rolling admissions process for Seaport-e. The contract contains seven regional zones and UEC Electronics was an awardee for the following regional zones: Zone 2 National Capital, Zone 3 Mid Atlantic, Zone 4 Gulf Coast, Zone 5 Midwest and Zone 6 Southwest.

UEC Electronics now has the opportunity to compete for tasks contracted by the Naval Sea Systems Command, Naval Air Systems Command, Space and Naval Warfare Systems Command, Naval Supply Systems Command, Military Sealift Command, Naval Facilities Command, Strategic Systems Programs, Office of Naval Research, and the United States Marine Corps. Services which may be provided span the entire spectrum of mission areas supported by the activities and technical capabilities that comprise the various ordering offices, as well as provide professional support services to the overall Navy and Marine Corps organizations.

Seaport-e has a contracted ceiling value of $3.9B.

Company Background Information: Founded in 1995, UEC Electronics is subsidiary of Arotech's (Nasdaq ARTX) Power Systems Division. Arotech Corporation is a defense and security products and services company, engaged in two business areas: interactive simulation for military, law enforcement and commercial markets; and power systems and batteries for the military, commercial and medical markets. Arotech operates through two major business divisions: Training and Simulation, and Power Systems. The Arotech Power Systems Division develops and provides sophisticated portable energy solutions designed to complex and demanding customer specifications. These solutions are used 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.

Contact Information: Nancy Straight, nancystraight@uec-electronics.com; 5914 Howard Street, Hanahan, SC; Ph 843-552-8682

Except for the historical information herein, the matters discussed in this release include forward-looking statements, as defined in the Private Securities Litigation Reform Act of 1995, and are subject to various risks and uncertainties that may cause actual results to vary materially. These risks and uncertainties are detailed in Arotech's most recent Annual Report on Form 10-K for the fiscal year ended December 31, 2015, and other filings with the Securities and Exchange Commission.

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