NEWARK, N.Y.--(BUSINESS WIRE)--Oct. 26, 2007--Ultralife Batteries, Inc. (NASDAQ: ULBI) has received orders valued in total at approximately $2.3 million from the U.S. Air Force for tactical communications systems for military vehicles. The systems, which will include the company's McDowell Research brand components, will be manufactured by Ultralife's Innovative Solutions Consulting (ISC) unit based in Southern Maryland. Deliveries are expected to begin this quarter and be completed in the first quarter of 2008.

"These orders illustrate the strategic value created by our ISC and McDowell Research units, and how we are generating new business by capitalizing on both the product and technical capabilities of these two great organizations," said John D. Kavazanjian, Ultralife's president and chief executive officer. "Our McDowell Research brand products and the specialized communications electronics and system design capabilities of ISC make for an unbeatable combination to provide high quality products and technical services to our customers."

The tactical communications systems consist of McDowell's MIK-18-HF and MIK-32 Dual SATCOM Radio/Amplifier Mounting Systems with integrated radio transceivers, power amplifiers, power supplies, antennas and other components. The MIK-18-HF and MIK-32 are designed as a permanent installation on High Mobility Multipurpose Wheeled Vehicles (HMMWV), Stryker CV and other military vehicles.

About Ultralife Batteries, Inc.

Ultralife is a global provider of high-energy power solutions, communications accessories, and engineering and technical services for diverse applications. The company develops, manufactures and markets a wide range of non-rechargeable and rechargeable batteries, charging systems and accessories for markets including defense, commercial 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, communications accessories and technical services. Defense, commercial and retail customers include: General Dynamics, Raytheon, 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, and its McDowell Research operating unit are in Newark, New York, near Rochester. Ultralife's other operating units are: Ultralife Batteries (UK) Ltd., in Abingdon, England; Innovative Solutions Consulting in Hollywood, Maryland; 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.

Ultralife(R) and McDowell Research(R) are registered trademarks 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.