Exhibit 99.1


         Ultralife Batteries to Acquire Chinese Battery Manufacturer for
     Approximately $4.2 Million; Acquisition of Able New Energy Co. Expands
                  Ultralife's Global Presence and Product Line


     NEWARK, N.Y.--(BUSINESS WIRE)--Jan. 26, 2006--Ultralife Batteries, Inc.
(NASDAQ: ULBI) has entered into a definitive agreement to acquire all of the
outstanding shares of Able New Energy Co., Ltd., an established, profitable
manufacturer of lithium batteries located in Shenzhen, China, for a combination
of cash, common stock and stock warrants for a total value of approximately $4.2
million. The acquisition, which is subject to customary closing conditions and
approval of the Chinese government, is expected to close in the second quarter.
     Established in 2003, Able New Energy produces non-rechargeable
lithium-manganese dioxide and lithium-thionyl chloride batteries, and supplies a
variety of other non-rechargeable and rechargeable battery chemistries, for a
wide range of applications worldwide including utility meters, security systems,
tire pressure sensors, medical devices, automotive electronics and memory
backup, among many others. In 2005, based on preliminary unaudited figures, Able
generated approximately $300,000 in operating profit on approximately $2.3
million in revenue.
     Under the terms of the agreement, the purchase price of approximately $4.2
million will consist of cash, common stock and stock warrants. The cash portion
of the purchase price is equal to $2.5 million with $500,000 of the cash
purchase price contingent on the achievement of certain performance milestones
of the acquired business. The equity portion of the purchase price will consist
of 80,000 shares of Ultralife common stock and 100,000 stock warrants, for a
total consideration of approximately $1.7 million. Ultralife anticipates that
this acquisition will be accretive in 2006.
     "With more than 50 products, including a wide range of lithium-thionyl
chloride and lithium-manganese dioxide batteries and coin cells, this
acquisition broadens our expanding portfolio of high-energy power sources,
enabling us to further penetrate large and emerging markets such as remote meter
reading, RFID and other markets that will benefit from these chemistries," said
John D. Kavazanjian, president and chief executive officer. "In addition, this
acquisition will strengthen Ultralife's global presence, facilitate our entry
into the rapidly growing Chinese market and improve our access to lower cost raw
materials."
     The current management team of Able New Energy will be retained as well as
the Able brand of products. Eric Hwang will remain as managing director and will
report to Philip Meek, Ultralife's vice president of manufacturing, who will be
responsible for the integration of Able and its products into Ultralife.
     Information about Able New Energy is available at the company's web site,
www.able-battery.com.

     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.


     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