#1INVESTOR PRESENTATION SPRING 2019 NASDAQ GM: ARTX WWW.AROTECH.COM AROTECH#2SAFE 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, 2018, 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 AROTECH 2#3AROTECH 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 FAAC Training and Simulation Division Arotech Corporation (Delaware) NASDAQ-ARTX 500 Employees Market Cap ~$65 M Power Systems Michigan Florida South Carolina Israel AROTECH 3#4INVESTMENT HIGHLIGHTS ◉ Committed to growth Leading market positions in attractive end markets with significant barriers to entry Growth drivers are in place and select opportunities could lead to significant growth Have invested in new product lines and product improvements Reduced Corporate Cost Structure ☐ Board of Directors and management focused on growth, operational efficiency and creating long- term shareholder value ■ Smaller Board and Executive teams Nasdaq: ARTX AROTECH CORPORATE EXPENSE (000s) $8,186 $7,489 $4,122 $4,133 2015 2016 2017 2018 AROTECH 4#5DIVERSIFIED REVENUE BASE 2018 Revenue by Division Numerous & diverse revenue sources Training and Simulation 59% $57M @ 41% GM 41% $40M @ 17% GM Air Warfare 29% ◉ Vehicle Simulation 39% 59% ◉ Use-of-Force 26% Warranty 6% Power Systems Contract Manufacturing 38% ■ Power Distribution & Generation 15% 41% Batteries 34% ■ Engineering Services 13% Training & Simulation. Power Systems A growing simulation division and near term opportunities in power Nasdaq: ARTX AROTECH 5#6FINANCIAL OVERVIEW ($ in millions) 140 120 100 80 60 40 20 Revenue 2015 2016 $95 - $105(1) Range Guidance CMS MEHPS CDT VCTS 2017 2018 2019E 2020E Adjusted EBITDA $8.0 $7.6 $7.1 $6.1 $7.0 - $8.0(1) Range Guidance 2015 Training & Simulation Incremental Revenue over 2019 2016 2017 Power Systems 2018 2019 E Total Company Estimate AROTECH 6 Incremental Revenue over 2019 (1) Guidance range provided by company as of May 9, 2019. Arotech undertakes no obligation to update its estimates Nasdaq: ARTX#7TRAINING AND SIMULATION DIVISION TRAINING AND SIMULATION DIVISION Arotech'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. AIR WARFARE SIMULATION VEHICLE SIMULATORS JUDGMENTAL USE OF FORCE RESEARCH SIMULATION Nasdaq: ARTX MILO RANGE FAACH AROTECH AROTECH Realtime technologies, inc AROTECH AROTECH 7#8TRAINING AND SIMULATION DIVISION FAAC INCURFURATED Military Vehicle Simulators MILO RANGE Realtime technologies, inc Commercial/Municipal Vehicle Simulators Air Warfare Simulations Judgmental Use of Force Research Simulation MILO RANGE Description Key Customers Provides high fidelity vehicle simulators for use in operator training for every wheeled vehicle platform in the U.S. military U.S. Army U.S. Marine Corps Designs and manufactures vehicle simulators for use in municipal end markets such as EMS, fire and police CAPOST DHS 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 DHS Most major U.S. U.S. Air Force U.S. Air National Guard FBI ■Department of ■New York City U.S. Navy Homeland Security ■City of Toronto Raytheon Lockheed Martin Cubic Boeing Taiwan City of London Washington, DC ZAP Training Range Software MACE VCTS Police CDT Bus Key Products ODS Rail MTVR Fire & rescue BOSS municipalities (800 systems) Hong Kong Emerging international markets MILO Range MILO Range Theater MILO Range Live Fire M-SATS FDU Specializes in multi-body vehicle dynamics modeling and graphical simulation for research and development solutions Major automotive companies Large universities, including University of Minnesota, Beijing Jiaotong University, and University of Michigan, Ohio State SimCreator Sim Vista SimObserver Research Simulators Nasdaq: ARTX AROTECH 8#9TRAINING & SIMULATION High Speed Weapon Simulation ZAP - Zone Acquisition Process ☐ Contracting with Lockheed, Boeing, Raytheon, USAF, Cubic F-15 Multi-year software support contracts Active every year on all platforms Continually expanded and enhanced as the operational flight programs are updated and new weapons/capabilities are added New markets with Aggressor Squadrons, TA- 50, UAVs, and situational awareness on non- fighter platforms $16,000 Weapon Simulation Revenues (000) $14,000 $12,000 $10,000 $8,000 $6,000 $4,000 $2,000 $0 2015 2016 2017 2018 Nasdaq: ARTX ATTACK STEERING CUE ALLOWABLE STEERING ERROR CIRCLE ° 4.0 F-35 F-18 155 LOFT SOLUTION CUE RAERO RANGE POPT RANGE IN-RANGE ZONE MANEUVER ZONE FD166 00024 TOS/ETA 000-03 OWNSHIP RANGE TO TARGET WHEN MISSILE ON RAIL ENTERS MPRF (M) OR IMPACTS TARGET (F) DYNAMIC LAUNCH ZONE INDICATES TARGET RANGE RELATIVE TO SELECTED MISSILE TIME REMAINING (T), TIME TO ACTIVE (A), OR TIME TO MPRF (M) FOR THE MISSILE WITH THE LONGEST TUI OR TIME REMAINING FOR THE MISSILE WITH THE LONGEST TUT (L) LAUNCHED AGAINST THE BUGGED TARGET CRM TWS NORMOVED CNT 15R 2100 540 +900K SWAP FOR DYWANDCLT_ F OWNSHIP RANGE TO' TARGET WHEN MISSILE OF INTEREST ENTERS MPRF (M) OR IMPACTS TARGET (F) -LOFT SOLUTION CUE RAERO RANGE ROPT RANGE IN-RANGE ZONE MANEUVER ZONE AROTECH 9#10TRAINING & SIMULATION Strong sales for Q1 2019 Commercial Simulators Benefiting from volume production Significant awards from: Bombardier Detroit's Suburban Mobility Authority for Regional Transportation (SMART) City of Detroit Bus and Police Kentucky Community & Technical College System (KCTCS) Nasdaq: ARTX SIMTA SFMTA SFMTA กา AAC AROTECH 10#11TRAINING & SIMULATION MILO RANGE ■ Use of Force and de-escalation training for law enforcement and military customers ■ New sales records in 2017 and 2018 ■ Full range of product offerings ■ Theater 180 and Theater 300 systems for immersive fields of view ■ Wireless distraction device ■ Live fire training ■ MILO M-SATS modular trainer Nasdaq: ARTX 合計 MILO RANGE THEATER AROTECH 11#12TRAINING & SIMULATION – KEY PROGRAMS - VCTS VIRTUAL CLEARANCE TRAINING SUITE DETECT IDENTITY NEUTRALIZE Trailer 3 MMPV RG-31/Panther/Husky 222614 ■ Train route clearance teams to detect and neutralize improvised explosive devices (IEDs) $41M Sole-Source award to FAAC expected to bring 5 more years of innovation ■ 3 Phase Program with first phase being delivered, second phase under development, and third phase slated for award Q1 2020 (est.) Trailer 5 VMMD Husky 222701 Nasdaq: ARTX 30 Trailer 4 MMPV RG-31/Panther/Husky 222614 Trailer 2 MPCV Buffalo 222613 Trailer 1 ICS/AAR 222612 CHIL 5 4 3 DOCIMENTINO FAAC D 3.401 ■ REFERENCE AROTECH 12 11/25/2014 TOF File Name: VCTS ECP Trailer Suite-Phase 2 (color).SLDDRW#13TRAINING & SIMULATION – KEY PROGRAMS CCS SHOOT. MOVE. COMMUNICATE. - COMBAT CONVOY SIMULATOR Awarded June 2018 $28.9M contract with 57 month POP $18.7M funded ☐ Upgrade for 7 USMC CCSS located at 5 sites $10.2M in contract options ☐ On-site CLS Upgrade for 2 Navy Systems Travel and ODCs Nasdaq: ARTX AROTECH 13#14US ARMY COMMON DRIVER TRAINER COMMON DRIVER FAAC IN INCORPO ORATED 号 TRAINER VIRTUAL PRODUCT LINE Single Award Indefinite Delivery/Indefinite Quantity (SA IDIQ) with an estimated ordering ceiling of $110M over 7 year period of performance Proposals have been submitted with expected award 2nd half of 2019. ☐ Nasdaq: ARTX COMMON DRIVER TRAI TRAINER CDT SV STRYKE VARIANT USA ODS U.S. Army Operator Driving Simulator USMC ODS USMC OPERATOR DRIVING SIMULATOR AROTECH 14#15POWER SYSTEMS DIVISION POWER SYSTEMS DIVISION Arotech'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. HYBRID POWER Nasdaq: ARTX POWER MANAGEMENT EEE EEE TACTICAL BATTERIES m CUSTOM BATTERY SOLUTIONS UE ElectricFuel® Epsilor AROTECH AROTECH ɅROTECH 15#16POWER SYSTEMS DIVISION 4304-12041-2100-0 WARNING Bater Product Areas: Hybrid Power ◉ Generation High Energy Systems Lithium Rechargeables NATO Standard 6T Rechargeable Lithium Market: Batteries Military Medical Commercial " C4ISR ◉ Distributed Power Management Contract Manufacturing Nasdaq: ARTX Tru D Established and Diverse Customer Base Includes: לישראל בא הגנה U.S.ARMY STRI Naval Information Warfare Center ATLANTIC THALES BOEING BAT POWER FOR MITTED TO XCELLEN Raytheon SWITLIK EAM WORLDWIDE Elbit Systems AROTECH 16#17POWER SYSTEMS – KEY PROGRAMS GREENS/Hybrid Power 1kW Solution ◉ - 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 Mobile Electric Hybrid Power Sources - 5kW+ Solution 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 Power Output: 5kW to 10kW Delivers Hours of Silent Watch Marine Corps estimates production at $80M+ / Under evaluation by the US Army GREENS Gen I LRIP Delivery Mar 2011 GREENS Gen I Prototype Delivery Sep 2010 GREENS Gen II FRP Jul 2012 Dec 2014 MHEES Delivery Sep 2015 MHEES Concept Refinement Jan 2015 www TPIZIS MEHPS Delivery Q4 2017 MEHPS Production RFP August 2019 USMC Testing 12/2017-12/2018 US Army Testing 3/2018-7/2019 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Nasdaq: ARTX ɅROTECH 17#18POWER SYSTEMS - KEY PROGRAMS Naval Information Warfare Center ATLANTIC Cyber Mission Kitting Systems Contract $949M Multiple Award Contract (MAC) Indefinite Delivery Indefinite Quantity (IDIQ) ◉ Awarded August 2018. 5 Awardees share contract ceiling and compete for task orders. ◉ UEC Electronics is prime with twenty-two exclusive subcontractors. One of three major contract vehicles used by Naval Information Warfare Command (NIWC) formerly SPAWAR-Atlantic - 5 year base contract, with one two-year option period Contract is predominately production related with end-item products rather than services. Initial task order solicitations are expected in Q2 2019. UE ELECTRONICS ABS Group & CACI Cask AMPIERCE EVER VIGILANT STRATEGY OUT SUCCES Nasdaq: ARTX EPIQ SOLUTIONS L2NL MNSULTING MARSHALL Communications Pelatron COLSA George consulting n DAVE NIVE RPIGROUP COMPUTER Φ STS $ UltiSat SENTAR VICKERS NOLAN AROTECH 18#19POWER SYSTEMS - ISRAELI MINISTRY OF DEFENSE Rechargeable Batteries 1237 Batteries for Satellites, UAVs, Tanks, Rockets, Submarines, Life Vests Nasdaq: ARTX ElectricFuel® Epsilor AROTECH 19#20POWER SYSTEMS - RECHARGEABLE BATTERIES Israel Defense Forces Tactical Batteries Converted Israel Defense Forces from primary lead acid to Lithium lon rechargeable batteries Four most common tactical batteries numbering in the hundreds of thousands and worth $38M Thousands of chargers Completed at end of 2017 ■ Extended battery life points to expected replacement work beginning in 2020 Nasdaq: ARTX www AROTECH 20#21POWER SYSTEMS – NEW MARKETS - Medical Batteries ■ Standard Medical batteries ■ Custom Medical battery solutions ◉ New market for Epsilor and Electric Fuel Li-Ion batteries for medical devices Cancer treatment ☐ Medical Cannabis Ventilators Renal monitoring ■ Novocure Tumor Treating Fields Steadily growing demand with product success Over 10,000 batteries in 2019 Nasdaq: ARTX BlectricFuel CE AROTECH 21#22POWER SYSTEMS - NEW MARKETS Lead Acid Replacement Selling test quantities worldwide 6T ■ Israel Ministry of Defense is our main development and test field ■ Israeli Defense Force - Procurement and Operational Status ☐ ☐ Field test of 3,000 km onboard Merkava main battle tank First serial order for wide field test Ministry of Defense - Industrial Readiness Funded program to build up a semi-automatic assembly. line Funding of new R&D program for fire suppression and propagation prevention improvements tires a Nasdaq: ARTX AROTECH 22#23POWER SYSTEMS – NEW MARKETS - Lead Acid Replacement UPS ◉ Made possible by the continuing decline in Lithium battery cell pricing. Lithium lon based DC UPS 5 times longer life time 5 times lower weight and size ☐ Life cycle cost benefit 4G and 5G telecom networks Surveillance stations Smart UPS " High performance power Ethernet switch ◉ Built-in interface for remote monitoring and control of battery and power status Nasdaq: ARTX ((- THE Butiful AROTECH 23