Exhibit 99.1

   Ultralife Batteries Receives $1.6 Million Military Battery Order

    NEWARK, N.Y.--(BUSINESS WIRE)--Feb. 1, 2006--Ultralife Batteries,
Inc. (NASDAQ: ULBI) has received an order valued at approximately $1.6
million from the U.S. Defense Department for its non-rechargeable
lithium-manganese dioxide BA-5347 military batteries. The company
expects to begin deliveries in the first quarter and complete them in
the second quarter.
    The order represents the first production release under a
five-year contract awarded to Ultralife in February 2005 by the U.S.
Defense Department. The contract could reach a maximum value of $15
million, representing 60 percent of a small business set-aside award.
    "Because of the extensive usage of infrared thermal sights by the
U.S. Military, the demand for the BA-5347 battery has been
increasing," said John D. Kavazanjian, Ultralife's president and chief
executive officer. "Ultralife has been the established producer of the
D-size cells used in BA-5347 batteries for the last few years and we
are pleased that we will now be building and supplying the entire
higher-value battery."
    The BA-5347/U is an 11.1 ampere-hour, 6-volt battery used to power
the advanced AN/PAS-13 infrared thermal weapon sight. More than 25,000
sights have been fielded by the U.S. Armed Forces.

    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.

    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



    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