NEW ORLEANS, LA -- (MARKET WIRE) -- 04/06/07 -- Kahn Gauthier Swick, LLC ("KGS") has filed the first class action lawsuit in the United States District Court for the Eastern District of Michigan, on behalf of shareholders who purchased or acquired the common stock of Arotech Corp. ("Arotech" or the "Company'') (NASDAQ: ARTX) between March 31, 2005 and November 14, 2005 (the "Class Period").

Arotech and certain of its officers and directors are charged with issuing a series of materially false and misleading statements in violation of Section 10(b) and 20(a) of the Securities Exchange Act and Rule 10b-5 promulgated thereunder. Throughout the Class Period, Arotech conditioned investors to believe that the Company was meeting or exceeding guidance and could foreseeably achieve sustained year-over-year quarterly revenue growth as high as 40%.

Unbeknownst to investors, however, throughout the Class Period, Arotech suffered from a host of adverse conditions that negatively impacted its business and caused the Company to fail to maintain its financial statements and reports in accordance with GAAP and SEC rules, including, that: (1) the integration of Armour of America, acquired by Arotech in August 2004 for approximately $22 million, was not proceeding according to plan; (2) profitability was overstated as a result of defendants' failure to write-down impaired assets and record rising impairment costs; and (3) defendants failed to maintain an adequate system of internal operational or financial controls necessary to operate the Company.

It was only on November 14, 2005 -- only weeks after defendants completed a $17 million offering of debt convertible into shares of Company stock -- that investors learned the truth about the Company. At that time, defendants belatedly disclosed that Arotech was operating well below plan and that it would be forced to take significant asset impairment charges. As a result of these disclosures, the following day, shares of the Company declined almost 27% in very heavy trading volume.

If you wish to serve as lead plaintiff in this case, you must move the Court no later than 60 days from today. Any member of the purported class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. If you would like to discuss your legal rights, you may e-mail or call KGS, without obligation or cost to you. You may contact Managing Partner Lewis Kahn of KGS direct, toll free 1-866-467-1400, ext. 106, or by email at lewis.kahn@kgscounsel.com. To learn more about this case or KGS, you may visit www.kgscounsel.com.

SPECIAL NOTICE: While federal law does not prohibit other lawyers from "announcing" this class action through the issuance of other press releases, KGS is the law firm that researched, investigated, drafted and filed the securities fraud case against Arotech. If you are an Arotech shareholder who decides to contact one of these lawyers, KGS reminds you to fully interview any such lawyer to assure that they thoroughly understand the facts surrounding the claims KGS has filed in Court.

Contact:

Lewis Kahn
KGS
1-866-467-1400, ext. 100
email: lewis.kahn@kgscounsel.com