Exhibit 99.1

   Ultralife Batteries Receives $1.4 Million Production Order from
       General Dynamics for Land Warrior Batteries and Chargers

    NEWARK, N.Y.--(BUSINESS WIRE)--Jan. 12, 2006--Ultralife Batteries,
Inc. (NASDAQ: ULBI) has received a battery and charger production
order from General Dynamics C4 Systems valued at approximately $1.4
million. The contract is for lithium ion rechargeable batteries as
well as vehicle, bulk and individual Soldier-based chargers, part of
the equipment being delivered to General Dynamics for use in a Stryker
battalion operational assessment.
    Land Warrior is an integrated, modular fighting system that uses
technology to enhance individual soldiers' close-combat tactical
awareness, lethality and survivability. The system includes
weapon-mounted sensors, an integrated helmet assembly, a
communications-navigation computer system and software for
friendly-force tracking and command/control programs. Featuring
seamless connectivity to the General Dynamics Stryker combat vehicle,
the Land Warrior - Stryker Interoperable portion of the program will
undergo a comprehensive operational assessment and a Limited User Test
this summer.
    In February 2004, Ultralife received a $2.7 million development
contract from General Dynamics to design and develop the batteries and
chargers to equip Land Warrior ensembles with an advanced man-portable
power system. Deliveries against the new production order will begin
this month and be completed by the end of March.
    John D. Kavazanjian, Ultralife's president and chief executive
officer said, "Our power systems engineering services capabilities,
combined with our superb track record of developing and supplying
industry-leading battery and charger designs demonstrates our ability
to move highly-engineered products from design into production. These
capabilities are proving to be a key competitive advantage for us as
the demand for our products continues to grow."
    The products being supplied include: Ultralife's UBBL06 (LI-145)
Rechargeable battery, which is a lightweight, rugged, high-energy 16.8
volt, 9.4 Ah lithium ion rechargeable SMBus v1.1 compliant smart
battery with a state-of-charge indicator; the CH0006 3-Bay Vehicle
Based Charger, which is a 3-battery rugged Smart Level-3 charger
mounted in different variants of the Stryker Vehicle; the CH0008
Individual Soldier Based Charger Kit, which is a rugged Smart Level-2
charger with global input voltage and frequency capability; and the
CH0017 12-Bay Bulk Charger Kit, which is a 12-battery rugged Smart
Level-3 charger with AC and DC power source options, having the
capability for various field uses, on a vehicle or in a depot setting.

    About Ultralife Batteries, Inc.

    Ultralife is a global provider of high-energy power systems 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 portfolio of standard
products and engineered solutions, Ultralife is at the forefront of
providing 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, Germany and Australia, among others.
    Ultralife's headquarters, principal manufacturing and research
facilities are in Newark, New York, near Rochester. Ultralife
Batteries (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 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.
    Detailed information on Ultralife is available at the Company's
web site, www.ultralifebatteries.com.
    Note to editors: Photos for the batteries and chargers mentioned
in this release, and other Ultralife military batteries, are available
at: http://www.ultralifebatteries.com/milphoto

    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