Ultralife Batteries Awarded $1.4 Million Contract for Tactical Repeater Systems

Ultralife Batteries, Inc.

Ultralife Batteries, Inc. (NASDAQ: ULBI) through its McDowell Research unit, has received a contract valued at approximately $1.4 million to supply its MRC-200 tactical repeater systems and associated ancillary components to an Allied military.

Deliveries will begin this quarter and are expected to be completed in the third quarter.

"Through McDowell's broad product offering and relationships with both U.S. and non-U.S. government entities, Ultralife continues to diversify its customer base and revenues," said John D. Kavazanjian, Ultralife's president and chief executive officer. "Our new tactical repeater system significantly complements our growing portfolio of military communications accessories and we are pleased to provide such a high-quality and tactically important communications component to our allies."

The MRC-200 is an advanced Tactical Repeater System (TRS) used in conjunction with modern multi-band, multi-mission handheld radio systems, and supports 20-Watt, 2-Frequency Simplex operations across the 30-512-MHz band according to role and mission. The MRC-200 TRS, which can be deployed as a standalone package, and which is ideally suited for quick-fit installation in a variety of land, air and maritime platforms, supports reliable and flexible communications and provides a significant increase in capability for the deployed handheld radio user.

Newark, N.Y., Feb. 12, 2007

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