Exhibit 99.1

Ultralife Batteries Awarded $25 Million Increase In Next Gen II Small
                Cylindrical Military Battery Contract

     NEWARK, N.Y.--(BUSINESS WIRE)--Sept. 27, 2005--Ultralife Batteries, Inc.
(NASDAQ: ULBI) has been awarded an increase by the U.S. Defense Department in
the quantity of BA-5372/U batteries to be supplied under its Next Gen II Small
Cylindrical battery contract. Valued at up to $25 million, the increase brings
the total contract value to up to $45 million. Ultralife has already shipped or
has orders scheduled for monthly shipments through 2006 totaling over $20
million. The additional quantities, once ordered, could extend deliveries into
2009.
     As a result of heightened military actions in the Middle East during the
past few years, demands for the BA-5372/U battery have exceeded original
projections. The remaining quantity of batteries that can be ordered on the
current contract is insufficient to meet new projected demands and additional
batteries are needed to eliminate backorders and replenish inventory.
     John D. Kavazanjian, Ultralife's president and chief executive officer,
said, "We have been supplying this strategically important battery to the U.S.
Military for many years and have always responded to its steadily increasing
demand. We are regularly shipping these batteries and are prepared to supply the
additional batteries over the next few years under this modified contract as we
continue to receive additional order releases from the Government."
     The BA-5372/U is a 500 milliampere-hour, 6-volt battery, which provides
memory back up power for over 60 applications, including a wide variety of
tactical and strategic communications-electronics equipment, the most
significant being the Single Channel Ground and Airborne Radio System.

     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, United Kingdom and Germany, 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. Detailed information on Ultralife is available at the
Company's web site, www.ultralifebatteries.com.
     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. Note to editors:
Photos for the battery and application mentioned in this release, and other
Ultralife military batteries, are available at:
http://www.ultralifebatteries.com/milphoto.asp 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
             or
             Media:
             Lippert/Heilshorn & Associates, Inc.
             Chenoa Taitt, 212-201-6635
             ctaitt@lhai.com