Exhibit 99.1

        Ultralife Batteries Receives $1.5 Million Military Battery Order

    NEWARK, N.Y.--(BUSINESS WIRE)--Sept. 12, 2006--Ultralife
Batteries, Inc. (NASDAQ: ULBI) has received an order valued at
approximately $1.5 million from an undisclosed foreign military for
lithium non-rechargeable batteries for use in powering surveillance
equipment. Deliveries are expected to begin in September and be
completed during the 4th quarter.
    "This order, and other recent business that we have won, supports
the continued growth of our military sector, said John D. Kavazanjian,
Ultralife's president and chief executive officer. "We are providing a
wide range of portable power solutions for a variety of international
defense applications."

    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, 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: 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