Arotech Corporation and Mr. Ephraim Fields of Echo Lake Capital, Arotech's stockholder, announced an agreement to settle their pending proxy contest in connection with Arotech's 2016 Annual Meeting of Stockholders. Under terms of the Agreement, Mr. Lawrence F. Hagenbuch, a nominee on Mr. Fields's proposed slate of directors, has joined Arotech's Board as a Class II director, and has been appointed to Arotech's Compensation, Nominating, and Executive and Finance Committees. In order to make room for Mr. Hagenbuch, Dr. Jay M. Eastman has stepped down from the Board.