FOR
IMMEDIATE RELEASE
NASDAQ
DECIDES TO CONTINUE
AROTECH’S
LISTING ON THE NASDAQ NATIONAL MARKET
--
Arotech Must File Amended 10-K and Obtain Stockholder
Approval
for
Reverse Stock Split by June 19, 2006 --
_______
Ann
Arbor, Michigan - May 18, 2006 - Arotech
Corporation (NasdaqNM: ARTX) announced today that
the
Nasdaq Listing Qualifications Panel has decided that Arotech’s securities will
remain listed on the Nasdaq National Market, provided Arotech meets the
following conditions set forth in the Panel’s decision:
(i) |
on
or before June 19, 2006, Arotech must file an amended Form 10-K that
includes a completed assessment by management of the effectiveness
of
Arotech’s internal control over financial
reporting;
|
(ii) |
on
or before June 19, 2006, Arotech must obtain approval from its
stockholders for implementation of a reverse stock split sufficient
to
cure its bid price deficiency; and
|
(iii) |
on
or before July 6, 2006, Arotech must demonstrate a closing bid
price of at
least $1.00 per share for a minimum of ten consecutive business
days.
|
While
Arotech expects to meet these conditions, there can be no assurance that
it will
be successful in doing so.
“We
are
extremely pleased with the Panel’s decision to continue our listing on the
Nasdaq National Market,” said Robert S. Ehrlich, Arotech’s Chairman of the
Board. “The
decision of the Panel to allow us time to file an amended Form 10-K and to
effect a reverse stock split underscores the critical importance of a positive
vote on the reverse stock split proposal at our Annual Meeting on June 19.
I
urge our stockholders to send in their completed proxy cards with a vote
in
favor of the reverse split, and to do so as soon as possible,” concluded
Ehrlich.
About
Arotech Corporation
Arotech
Corporation is a leading provider of quality defense and security products
for
the military, law enforcement and homeland security markets, including
multimedia interactive simulators/trainers, lightweight armoring and advanced
zinc-air and lithium batteries and charg-
ers.
Arotech operates through three major business divisions: Armor, Simulation
and
Training and Battery and Power Systems.
Arotech
is incorporated in Delaware, with corporate offices in Ann Arbor, Michigan,
and
research, development and production subsidiaries in Alabama, Colorado,
Michigan, California and Israel.
INVESTOR
RELATIONS CONTACT:
Victor
Allgeier, President
TTC
Group, Inc.
+1-212-227-0997
vic@ttcominc.com
Except
for the historical information herein, the matters discussed in this news
release include forward-looking statements, as defined in the Private Securities
Litigation Reform Act of 1995, including Arotech’s ability to meet the
conditions set forth in the decision of the Nasdaq
Listing Qualifications Panel. The words “believes,” “anticipates,” “expects,”
“estimates” and similar expressions are intended to identify such
forward-looking statements. Forward-looking statements reflect management’s
current knowledge, assumptions, judgment and expectations regarding future
performance or events. Although management believes that the expectations
reflected in such statements are reasonable, readers are cautioned not to
place
undue reliance on these forward-looking statements, as they are subject to
various risks and uncertainties that may cause actual results to vary
materially. These risks and uncertainties include, but are not limited to,
risks
relating to: the ineffectiveness of Arotech’s internal control over financial
reporting and disclosure controls and procedures; 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; Arotech’s ability to remain listed on the
Nasdaq Stock Market in accordance with the Nasdaq’s $1.00 minimum bid price and
other continued listing standards; dilution resulting from issuances of
Arotech’s common stock upon conversion or payment of its outstanding convertible
debt, which would be increasingly dilutive if and to the extent that the
market
price of Arotech’s stock decreases; and other risk factors detailed in Arotech’s
most recent Annual Report on Form 10-K for the fiscal year ended December
31,
2005 and other filings with the Securities and Exchange Commission. Arotech
assumes no obligation to update the information in this release. Reference
to
Arotech’s website above does not constitute incorporation of any of the
information thereon into this press release.
Each
of the Arotech’s named executive officers and directors, whose stockholdings are
noted in Arotech’s Schedule 14A proxy statement filed by Arotech with the
Securities and Exchange Commission on May 10, 2006, a copy of which is available
at http://tinyurl.com/ezlju,
may
be deemed to be a participant in Arotech’s solicitation of proxies for the 2006
Annual Meeting of Stockholders. Information regarding the names and interests
of
individuals who may be deemed participants in the solicitation of proxies
of
Arotech’s stockholders is contained in the Schedule 14A.
Stockholders
may obtain free copies of the Proxy Statement and other documents filed with
the
SEC by Arotech through the Web site maintained at the SEC at http://www.sec.gov/
or
on Arotech’s Web site at http://www.arotech.com/compro/index.html.
Stockholders are advised to read the Proxy Statement because it contains
important information.