Exhibit 99.1


  Ultralife Batteries Receives $800,000 Order to Supply Batteries to
                          Cubic Corporation


    NEWARK, N.Y.--(BUSINESS WIRE)--March 15, 2007--Ultralife
Batteries, Inc. (NASDAQ: ULBI) has received an order valued at more
than $800,000 to supply its UBBL12 lithium ion batteries to Cubic
Defense Applications, the defense segment of Cubic Corporation. The
batteries are used to power Cubic's Weapons Effects Simulation
land-based combat training system. Deliveries are expected to begin
and be completed in the second quarter.

    John D. Kavazanjian, Ultralife's president and chief executive
officer said, "This order illustrates our leadership role in
developing and supplying advanced power sources for use in a wide
range of portable defense systems and further demonstrates the growing
demand for our products from a diverse set of defense customers."

    The UBBL12 is a rugged, 15-volt, 7-ampere-hour lithium ion battery
containing Ultralife's SmartCircuit(TM) technology and powers the
Weapon Effects Simulation system, which features a fully integrated
Direct-Fire Weapons Effects Simulation system that includes Cubic's
Precision Combat Training System and advanced software-based exercise
control and after-action review technology.

    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.

    Note to editors: A photograph of the UBBL12 battery is available
at the following link:
www.ultralifebatteries.com/images/lineart/hires/UBBL12_hires.jpg

    Ultralife(R) and SmartCircuit(TM) are trademarks 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