Exhibit 99.1

       Ultralife Batteries Notified that BA-5347 Contract Protest Denied;
            Government Reaffirms Company's Win of $15 Million Award


    NEWARK, N.Y.--(BUSINESS WIRE)--Aug. 11, 2005--Ultralife Batteries,
Inc., (NASDAQ: ULBI) was notified by the U.S. Department of Defense on
August 10 that, following a formal review process, the protest filed
on March 14 by a U.S.-based battery assembly company claiming that the
BA-5347/U battery contract was improperly awarded, has been denied by
the Government. Ultralife still expects to complete the qualification
process for this battery before the end of 2005, after which it will
begin production shipments.
    In February 2005 Ultralife announced that the U.S. Defense
Department awarded it the 60 percent portion of the BA-5347 battery
five-year production contract, which could reach a maximum value of
$15 million.
    Ultralife's BA-5347/U is an 11 ampere-hour, 6-volt
non-rechargeable lithium-manganese dioxide battery used to power the
AN/PAS-13 Thermal Weapon Sight (TWS). Used on rifles and other small
arms and versatile enough to be used for other applications such as
surveillance and shoulder-launched missiles, the thermal sight, also
selected for the Army's Land Warrior program, can be used to see in
darkness, adverse weather and through battlefield smoke and dust.

    About Ultralife Batteries, Inc.

    Ultralife is a global provider of power solutions for diverse
applications. The company develops, manufactures and markets a wide
range of non-rechargeable and rechargeable batteries, charging systems
and accessories for use in military, industrial and consumer portable
electronic products. Through its range of standard products and
engineered solutions, Ultralife is able to provide the next generation
of power systems. 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 and United Kingdom, among others.
    Ultralife's headquarters, principal manufacturing and research
facilities are in Newark, New York, near Rochester. Ultralife (UK)
Ltd., a second manufacturing facility, is located in Abingdon,
England. Both facilities are ISO-9001 certified.

    This press release contains 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: loss of business with the U.S.
government, worsening global economic conditions, world events,
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.
    Detailed information on Ultralife is available at the Company's
web site, www.ultralifebatteries.com.
    Ultralife(R) is a registered trademark of Ultralife Batteries,
Inc.



    CONTACT: Ultralife Batteries, Inc.
             Pete Comerford, 315-332-7100
             pcomerford@ulbi.com
             or
             Lippert/Heilshorn & Associates, Inc.
             Investor Relations:
             Jody Burfening, 212-838-3777
             jburfening@lhai.com
             or
             Media:
             Chenoa Taitt, 212-201-6635
             ctaitt@lhai.com