Exhibit 99.1


Ultralife Batteries Completes Acquisition of ABLE New Energy

    NEWARK, N.Y.--(BUSINESS WIRE)--May 23, 2006--Ultralife Batteries,
Inc. (NASDAQ: ULBI) has completed the acquisition of ABLE New Energy
Co., Ltd., a manufacturer of lithium batteries located in Shenzhen,
China.
    Under the terms of the acquisition, the purchase price of
approximately $4.2 million consists of cash, common stock and stock
warrants. The cash portion is equal to $2.5 million, with $2 million
paid upon the closing and $500,000 contingent on the achievement of
certain performance milestones of the acquired business. The equity
portion of the purchase price consists of approximately 96,000 shares
of Ultralife common stock and 100,000 stock warrants.
    Established in 2003, ABLE 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 unaudited figures, ABLE generated approximately
$300,000 in operating profit on approximately $2.3 million in revenue.
    "We acquired ABLE to enhance our global presence and competitive
strength both through the expansion of our product line and by
creating access to lower material and manufacturing costs," said John
D. Kavazanjian, Ultralife's president and chief executive officer.
"This acquisition will also facilitate our entry into the rapidly
growing Chinese market."
    Information about ABLE is available at: 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: 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, 212-838-3777
             ctaitt@lhai.com