NEWARK, N.Y.--(BUSINESS WIRE)--June 26, 2007--Ultralife Batteries, Inc. (NASDAQ: ULBI) has received orders valued at approximately $1.8 million to supply batteries and chargers to a major defense contractor. Ultralife's UBI-2590 lithium ion rechargeable battery and its two-bay and six-bay battery chargers will be supplied to power communications systems for an international defense organization. Deliveries have begun and are expected to be completed this month.

John D. Kavazanjian, Ultralife's president and chief executive officer, said, "Combined with previous awards we have received, this contract further advances our sales to military prime contractors both in the U.S. and abroad, where our total systems approach - encompassing batteries, chargers, power supplies and integrated communications systems - adds value and provides us with a competitive advantage."

Ultralife's UBI-2590 lithium ion rechargeable battery contains two independent 15-volt sections, each with protection electronics and state-of-charge displays, enabling users to operate the battery in either 15-volt or 30-volt modes. The UBI-2590 is the most advanced battery of its type and is designed to power demanding military devices. In addition to military applications, its usage has been spread over many commercial markets including law enforcement, homeland security, scientific research, medical, surveillance and mining. Applications include military communications devices, robotics, power grid surveillance sensors, remote data collection devices, video detection systems and scientific monitoring equipment.

Ultralife's CH0004 two-bay and CH0003 six-bay battery chargers provide a reliable and consistent recharge of two to six batteries simultaneously. The chargers auto-sense the battery type to assure the proper charging profile is used. The chargers can be both powered in the field from vehicles and generators, and in base locations. A wide range of AC and DC input voltages allows for operation from nearly any power source likely to be encountered worldwide.

About Ultralife Batteries, Inc.

Ultralife is a global provider of high-energy power solutions and communications accessories for diverse applications. The company develops, manufactures and markets a wide range of non-rechargeable and rechargeable batteries, charging systems and accessories including power supplies, amplifiers, amplified speakers, equipment mounts, case equipment and integrated communication systems for markets including military, industrial and consumer portable electronics. Through its portfolio of standard products and engineered solutions, Ultralife is at the forefront of providing the next generation of power systems and accessories. Industrial, retail and government customers include General Dynamics, Philips Medical Systems, General Motors, Energizer, Kidde Safety, Lowe's, Radio Shack and the national defense agencies of the United States, United Kingdom, Germany, Australia and New Zealand, among others.

Ultralife's headquarters, principal manufacturing and research facilities are in Newark, New York, near Rochester. Ultralife's three other operating units are: Ultralife Batteries (UK) Ltd., in Abingdon, England; McDowell Research in Waco, Texas; and ABLE New Energy in Shenzhen, China. Detailed information on Ultralife is available at: www.ultralifebatteries.com.

This press release may contain forward-looking statements based on current expectations that involve a number of risks and uncertainties. The potential risks and uncertainties that could cause actual results to differ materially include: worsening global economic conditions, increased competitive environment and pricing pressures, disruptions related to restructuring actions and delays. Further information on these factors and other factors that could affect Ultralife's financial results is included in Ultralife's Securities and Exchange Commission (SEC) filings, including the latest Annual Report on Form 10-K.

Note to editors: Photographs of the UBI-2590 battery, CH0004 and CH0003 chargers are available at the following links:

www.ultralifebatteries.com/images/lineart/hires/UBI2590_hires.jpg
www.ultralifebatteries.com/images/lineart/hires/WB-hires_CH0004.jpg
www.ultralifebatteries.com/images/lineart/hires/WB-hires_CH0003.jpg

Ultralife(R) is a registered trademark of Ultralife Batteries, Inc.

CONTACT: Ultralife Batteries, Inc.
Pete Comerford, 315-332-7100
pcomerford@ulbi.com
or
Investor Relations:
Lippert/Heilshorn & Associates, Inc.
Jody Burfening, 212-838-3777
jburfening@lhai.com

SOURCE: Ultralife Batteries, Inc.