Exhibit 99.1

Ultralife Corporation Reports Third Quarter Results

NEWARK, N.Y. – October 27, 2022 -- Ultralife Corporation (NASDAQ: ULBI) reported an operating loss of $0.6 million and adjusted EBITDA of $1.3 million on revenue of $33.2 million for the third quarter ended September 30, 2022. For the third quarter of 2021, the Company reported an operating loss of $0.8 million and adjusted EBITDA of $0.3 million on revenue of $21.8 million.

“For the third quarter, government/defense revenue doubled year-over-year reflecting higher demand from our customers in Battery & Energy Products and shipments of larger awards in Communications Systems. This increase in government/defense revenue along with the addition of Excell, resulted in a 53% increase in total Company revenue. While we benefited from the operating expense leverage of the sharp revenue gain, the combination of production inefficiencies associated with supply chain disruptions and input cost inflation severely pressured gross margins and profitability for the quarter,” said Michael D. Popielec, President and Chief Executive Officer. “We continue to work on offsetting inflation and manufacturing workflow challenges with price realization and productivity gains to restore profitable growth. With a backlog now over $100 million, we are positioned well for near-term revenue increases and remain committed to advancing several transformational projects and new product opportunities to drive long-term revenue growth.”

Third Quarter 2022 Financial Results

Revenue was $33.2 million, an increase of $11.5 million, or 52.7%, compared to $21.8 million for the third quarter of 2021. Overall, government/defense sales increased 99.8% and commercial sales increased 38.0% from the 2021 period. Battery & Energy Products revenue increased 42.9% to $28.6 million, compared to $20.0 million last year, reflecting $6.9 million of Excell sales coupled with organic increases of 66.4% in government/defense sales, 7.4% in oil & gas market sales and 2.4% in industrial market sales, partially offset by a 12.1% decrease in medical sales. Net organic sales for this segment increased 8.5%. Communications Systems sales increased 165.3% to $4.7 million compared to $1.8 million for the same period last year, despite lingering supply chain disruptions resulting in delays in our shipments to future periods. Our total backlog exiting the third quarter grew to $106.2 million, which represents an increase of $27.0 million or 34.1% over the comparable backlog exiting the prior quarter and an increase of $64.2 million or 153.3% over that exiting the third quarter of 2021.

Gross profit was $6.7 million, or 20.2% of revenue, compared to $5.1 million, or 23.5% of revenue, for the same quarter a year ago. Battery & Energy Products’ gross margin was 18.7% compared to 24.0% last year, primarily due to supply chain disruptions including component cost inflation, prolonged lead times and logistics delays, and the incremental costs of transitioning new products to high volume production. Communications Systems gross margin was 29.5% compared to 18.0% last year, primarily due to higher factory volume and more favorable sales mix.

Operating expenses were $7.3 million compared to $5.9 million last year, an increase of 24.0%, reflecting $1.1 million for Excell. Operating expense ratio to revenue was 22.0%, a 510 basis-point improvement as compared to 27.1% of revenue for the year-earlier period.

Operating loss was $0.6 million compared to $0.8 million last year.

Net loss was $0.2 million or $0.01 per diluted share on a GAAP basis compared to a net loss of $0.6 million or $0.04 per diluted share for the third quarter of 2021.

Adjusted EBITDA, defined as EBITDA including non-cash, stock-based compensation expense, was $1.3 million or 3.8% of sales for the third quarter of 2022, compared to $0.3 million or 1.3% of sales for the year-earlier period.

See the “Non-GAAP Financial Measures” section of this release for a reconciliation of Adjusted EPS to EPS and adjusted EBITDA to net (loss) income attributable to Ultralife Corporation.

About Ultralife Corporation

Ultralife Corporation serves its markets with products and services ranging from power solutions to communications and electronics systems. Through its engineering and collaborative approach to problem solving, Ultralife serves government, defense and commercial customers across the globe.

Headquartered in Newark, New York, the Company's business segments include Battery & Energy Products and Communications Systems. Ultralife has operations in North America, Europe and Asia. For more information, visit www.ultralifecorporation.com.

Conference Call Information

Ultralife will hold its third quarter earnings conference call today at 8:30 AM ET. To participate in the live call, please dial (800) 915-4836 at least ten minutes before the scheduled start time, identify yourself and ask for the Ultralife call. A live webcast of the conference call will be available to investors in the Events & Presentations section of the Company's website at http://investor.ultralifecorporation.com. For those who cannot listen to the live broadcast, a replay of the webcast will be available shortly after the call at the same location.

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 the impact of COVID-19 and related supply chain disruptions, potential reductions in revenues from key customers, acceptance of our new products on a global basis and uncertain global economic conditions. The Company cautions investors not to place undue reliance on forward-looking statements, which reflect the Company's analysis only as of today's date. The Company undertakes no obligation to publicly update forward-looking statements to reflect subsequent events or circumstances. 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 CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(Dollars in Thousands)

(Unaudited)

	September 30, 2022			December 31, 2021
ASSETS
Current Assets:
Cash	$	5,051		$	8,413
Trade Accounts Receivable, Net		26,876			20,232
Inventories, Net		40,769			33,189
Prepaid Expenses and Other Current Assets		6,241			4,690
Total Current Assets		78,937			66,524
Property, Plant and Equipment, Net		21,898			23,205
Goodwill		37,066			38,068
Other Intangible Assets, Net		16,095			17,390
Deferred Income Taxes, Net		11,963			11,472
Other Non-Current Assets		1,981			2,879
Total Assets	$	167,940		$	159,538
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
Accounts Payable	$	15,827		$	9,823
Current Portion of Long-Term Debt		2,000			2,000
Accrued Compensation and Related Benefits		2,000			1,842
Accrued Expenses and Other Current Liabilities		8,254			5,259
Total Current Liabilities		28,081			18,924
Long-Term Debt, Net		20,874			18,857
Deferred Income Taxes		1,996			2,254
Other Non-Current Liabilities		1,673			1,760
Total Liabilities		52,624			41,795
Shareholders' Equity:
Common Stock		2,057			2,052
Capital in Excess of Par Value		187,181			186,518
Accumulated Deficit		(47,727	)		(47,832	)
Accumulated Other Comprehensive Loss		(4,842	)		(1,653	)
Treasury Stock		(21,480	)		(21,469	)
Total Ultralife Equity		115,189			117,616
Non-Controlling Interest		127			127
Total Shareholders’ Equity		115,316			117,743
Total Liabilities and Shareholders' Equity	$	167,940		$	159,538

ULTRALIFE CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF (LOSS) INCOME

(In Thousands Except Per Share Amounts)

(Unaudited)

	Three-Month Period Ended						Nine-Month Period Ended
	September 30,			September 30,			September 30,			September 30,
	2022			2021			2022			2021
Revenues:
Battery & Energy Products	$	28,583		$	20,008		$	87,873		$	64,994
Communications Systems		4,651			1,753			7,860			9,510
Total Revenues		33,234			21,761			95,733			74,504
Cost of Products Sold:
Battery & Energy Products		23,238			15,216			68,656			48,750
Communications Systems		3,281			1,437			5,758			6,401
Total Cost of Products Sold		26,519			16,653			74,414			55,151
Gross Profit		6,715			5,108			21,319			19,353
Operating Expenses:
Research and Development		1,896			1,723			5,425			5,223
Selling, General and Administrative		5,405			4,164			15,982			12,866
Total Operating Expenses		7,301			5,887			21,407			18,089
Operating (Loss) Income		(586	)		(779	)		(88	)		1,264
Other (Income) Expense		(254	)		(1	)		(22	)		76
(Loss) Income Before Income Taxes		(332	)		(778	)		(66	)		1,188
Income Tax (Benefit) Provision		(90	)		(175	)		(171	)		290
Net (Loss) Income		(242	)		(603	)		105			898
Net (Loss) Income Attributable to Non-Controlling Interest		(3	)		(18	)		-			1
Net (Loss) Income Attributable to Ultralife Corporation	$	(239	)	$	(585	)	$	105		$	897
Net (Loss) Income Per Share Attributable to Ultralife Common Shareholders – Basic	$	(.01	)	$	(.04	)	$	.01		$	.06
Net (Loss) Income Per Share Attributable to Ultralife Common Shareholders – Diluted	$	(.01	)	$	(.04	)	$	.01		$	.06
Weighted Average Shares Outstanding – Basic		16,133			16,065			16,122			16,020
Weighted Average Shares Outstanding – Diluted		16,133			16,065			16,144			16,200

Non-GAAP Financial Measures:

Adjusted EBITDA

In evaluating our business, we consider and use adjusted EBITDA, a non-GAAP financial measure, as a supplemental measure of our operating performance in addition to GAAP financial measures. We define adjusted EBITDA as net income (loss) attributable to Ultralife Corporation before net interest expense, provision (benefit) for income taxes, depreciation and amortization, and stock-based compensation expense, plus/minus expense/income that we do not consider reflective of our ongoing continuing operations. We reconcile adjusted EBITDA to net income (loss) attributable to Ultralife Corporation, the most comparable financial measure under GAAP. Neither current nor potential investors in our securities should rely on adjusted EBITDA as a substitute for any GAAP measures and we encourage investors to review the following reconciliation of adjusted EBITDA to net income attributable to Ultralife Corporation.

ULTRALIFE CORPORATION AND SUBSIDIARIES

CALCULATION OF ADJUSTED EBITDA

(Dollars in Thousands)

(Unaudited)

	Three-Month Period Ended						Nine-Month Period Ended
	September 30, 2022			September 30, 2021			September 30, 2022			September 30, 2021
Net (Loss) Income Attributable to Ultralife Corporation	$	(239	)	$	(585	)	$	105		$	897
Adjustments:
Interest and Financing Expense		272			53			583			164
Income Tax (Benefit) Provision		(90	)		(175	)		(171	)		290
Depreciation Expense		815			700			2,450			2,160
Amortization Expense		318			148			969			458
Stock-Based Compensation Expense		179			142			552			512
Non-Cash Purchase Accounting Adjustment		-			-			55			-
Adjusted EBITDA	$	1,255		$	283		$	4,543		$	4,481

Company Contact:

Ultralife Corporation

Philip A. Fain

(315) 210-6110

pfain@ulbi.com

Investor Relations Contact:

LHA

Jody Burfening

(212) 838-3777

jburfening@lhai.com