NEWARK, N.Y., Mar 27, 2007 (BUSINESS WIRE) -- Ultralife Batteries, Inc. (NASDAQ: ULBI) has received a production contract valued at more than $1.5 million from Harris Corporation's RF Communications Division to supply high-capacity rechargeable lithium ion batteries for use with the Harris Falcon(R) very high frequency/ultra high frequency (VHF/UHF) multiband handheld radio family. Deliveries are expected to begin in the second quarter and be completed in the fourth quarter.

The contract is Ultralife's first production order to come from a development contract awarded by Harris RF in January 2005 to design and develop a battery to extend the operating time of the Falcon II radio, which is used by military forces for squad-level communications.

"We designed this battery using advanced circuit technology and materials to meet the most stringent customer specifications and are delighted to add Harris RF Communications to our growing list of defense prime contractor customers," said John D. Kavazanjian, Ultralife's president and chief executive officer. "Through our superior engineering services capabilities Ultralife is continuing to demonstrate expertise in designing and producing highly-engineered products, and leveraging these capabilities to strengthen our competitive advantage in the highly attractive prime contractor market."

The rugged, high-capacity smart lithium ion battery, containing Ultralife's SmartCircuit(TM) technology, provides 12-volts and 4.7 ampere-hours of capacity in a lightweight, watertight case.

The Harris Falcon line provides interoperable, multiband, multi-mission secure voice and data communications to defense and peacekeeping forces around the world. Radios are available in vehicular, handheld and manpack configurations and transmit across the 30 to 512 MHz frequency spectrum.

"Our customers often face life-or-death situations that require reliable, uncompromised communications," said George Helm, vice president and general manager, U.S. Government Products, Harris RF Communications. "By providing battery technology that allows our radios to operate for longer periods of time, Ultralife is helping us deliver on that promise."

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 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 and accessories. Defense, commercial and retail 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: Addressing the process of U.S. military procurement, 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) is a registered trademark of Ultralife Batteries, Inc.

Falcon(R) is a registered trademark of Harris Corporation

SOURCE:
Ultralife Batteries, Inc.

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