Exhibit 99.1

  Ultralife Batteries Awarded Contract Worth Approximately $7 Million By U.K.
                              Ministry of Defence

     NEWARK, N.Y.--(BUSINESS WIRE)--March 14, 2007--Ultralife Batteries, Inc.
(NASDAQ: ULBI) has received a contract valued at approximately $7 million to
supply BA-5590 lithium-sulfur dioxide batteries to the U.K. Ministry of Defence.
Ultralife will provide the MoD with batteries manufactured by EaglePicher
Technologies, LLC through a supply agreement. Deliveries are expected to begin
this quarter and be completed in the fourth quarter.

     "This very significant contract offers clear evidence of the depth of
Ultralife's international selling capabilities," said John D. Kavazanjian,
Ultralife's president and chief executive officer. "While we already supply our
industry-leading lithium-manganese dioxide BA-5390 batteries to the MoD, we
recognize that our customers sometimes require alternatives. In this case our
ability to win this contract by sourcing through EaglePicher represents a major
achievement in unseating an incumbent supplier and demonstrates our flexibility
in supplying our customers with the products they require."

     "All of us at EaglePicher Technologies are thrilled that Ultralife has
selected our 5590 battery as part of this significant win," said Steve Westfall,
President, EaglePicher Technologies, LLC. "It is an example of how we are
growing our business. As a supplier, our goal is to make this relationship
seamless and transparent with quality products delivered on schedule."

     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.


     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