Exhibit 99.1

Ultralife Batteries Receives Contract Valued at More Than $6 Million for
                  Batteries to Power Thermal Imagers


    NEWARK, N.Y.--(BUSINESS WIRE)--Feb. 28, 2007--Ultralife Batteries,
Inc. (NASDAQ: ULBI) has received a contract valued at more than $6
million for its Sophie Thermal Imager battery from the U.K. Ministry
of Defence. Deliveries are expected to begin this quarter and be
completed in the second quarter.

    John D. Kavazanjian, Ultralife's president and chief executive
officer, said, "This significant contract to provide the power for one
of the most advanced thermal imaging systems on the market
demonstrates our continued success in winning international orders for
our high-performance military batteries and further diversifying our
government/defense business."

    Ultralife's 15-volt lithium-manganese dioxide batteries power
the Sophie binoculars and thermal imaging camera. Manufactured by
Thales, Sophie is a lightweight multi-application portable binoculars
and thermal imaging system designed for hand-held or
remote-controlled day/night surveillance including bad weather
conditions. More than 6,000 systems have been deployed in France, the
U.K. and 43 other countries.

    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