Ultralife Corporation (NASDAQ: ULBI) has been awarded a multi-year contract for advanced lithium ion battery and charging systems by General Dynamics United Kingdom Limited (General Dynamics UK) for use by the British Armed Forces. General Dynamics UK has awarded the company initial orders valued at approximately $12 million. As anticipated, deliveries against these orders are expected to begin in the fourth quarter of 2009 and be completed in the third quarter of 2010.

“After an extensive and thorough evaluation and qualification process, General Dynamics UK selected Ultralife to develop and supply unique battery and charging systems. The selection is a direct reflection of our design and engineering expertise, product performance and reliable delivery capabilities, making Ultralife the preferred power system supplier for our government/defense customers worldwide,” said John D. Kavazanjian, Ultralife’s president and chief executive officer.

Ultralife’s UBBL31 and UBBL29 lithium ion batteries and next-generation Smart Charging Units were selected by General Dynamics UK following an extensive competitive bid, down-selection and performance qualification process. Designed with Ultralife’s SmartCircut^® technology, the ruggedized smart batteries and chargers, the most advanced military portable power system available today, are designed to give tactical radio users long-life performance in a wide range of usage and environmental conditions. Key features such as enhanced deep discharge protection, alarm activations and status indications will enable the users to maintain full awareness of the operational condition of the selected Ultralife brand of products.

About Ultralife Corporation

Ultralife Corporation, which began as a battery company, now serves its markets with products and services ranging from portable and standby 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.

Ultralife’s family of brands includes: Ultralife Batteries, Stationary Power Services, RPS Power Systems, ABLE, McDowell Research, RedBlack Communications and AMTI. Ultralife’s operations are in North America, Europe and Asia. For more information on Ultralife, visit www.ultralifecorp.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.

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.