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<SEC-DOCUMENT>0001157523-07-011473.txt : 20071119
<SEC-HEADER>0001157523-07-011473.hdr.sgml : 20071119
<ACCEPTANCE-DATETIME>20071119172819
ACCESSION NUMBER:		0001157523-07-011473
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20071116
ITEM INFORMATION:		Completion of Acquisition or Disposition of Assets
ITEM INFORMATION:		Unregistered Sales of Equity Securities
ITEM INFORMATION:		Other Events
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20071119
DATE AS OF CHANGE:		20071119

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			ULTRALIFE BATTERIES INC
		CENTRAL INDEX KEY:			0000875657
		STANDARD INDUSTRIAL CLASSIFICATION:	MISCELLANEOUS ELECTRICAL MACHINERY, EQUIPMENT & SUPPLIES [3690]
		IRS NUMBER:				161387013
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		8-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-20852
		FILM NUMBER:		071257636

	BUSINESS ADDRESS:	
		STREET 1:		2000 TECHNOLOGY PARKWAY
		CITY:			NEWARK
		STATE:			NY
		ZIP:			14513
		BUSINESS PHONE:		3153327100

	MAIL ADDRESS:	
		STREET 1:		2000 TECHNOLOGY PARKWAY
		CITY:			NEWARK
		STATE:			NY
		ZIP:			14513
</SEC-HEADER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>a5549427.txt
<DESCRIPTION>ULTRALIFE BATTERIES, INC. 8-K
<TEXT>


                                  United States
                       Securities and Exchange Commission
                             Washington, D.C. 20549


                                    FORM 8-K


                           Current Report Pursuant to
           Section 13 or 15(d) of the Securities Exchange Act of 1934


                                November 16, 2007
                                (Date of Report)


                            ULTRALIFE BATTERIES, INC.
             (Exact name of registrant as specified in its charter)



         Delaware                    000-20852                 16-1387013
 (State of incorporation)   (Commission File Number)         (IRS Employer
                                                           Identification No.)

        2000 Technology Parkway, Newark, New York                   14513
         (Address of principal executive offices)                 (Zip Code)

                                 (315) 332-7100
              (Registrant's telephone number, including area code)


- -------------------------------------------------------------------------------

Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any of the
following provisions (see General Instruction A.2. below):

[ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR
    230.425)

[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
    240.14a-12)

[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange
    Act (17 CFR 240.14d-2(b))

[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange
    Act (17 CFR 240.13e-4(c))

===============================================================================

<PAGE>


Item 2.01    Completion of Acquisition or Disposition of Assets.

     On November 16, 2007, Ultralife Batteries, Inc. (the "Registrant")
completed the acquisition of all the issued and outstanding shares of common
stock of Stationary Power Services, Inc., a Florida corporation ("SPS") from
William Maher (the "SPS Acquisition"). Also on November 16, 2007, the Registrant
completed the acquisition of all of the issued and outstanding shares of common
stock of Reserve Power Systems, Inc., a Florida corporation ("RPS") from William
Maher and Edward Bellamy (Maher and Bellamy being referred to as the "Sellers")
(the "RPS Acquisition"). There are no material relationships between the
Registrant or its affiliates and SPS, RPS, Mr. Maher or Mr. Bellamy other than
in respect of the SPS and RPS Acquisitions.

SPS Acquisition
- ---------------

     The SPS Acquisition was consummated pursuant to the terms of the Stock
Purchase Agreement, dated October 30, 2007, by and among the Registrant, SPS and
Mr. Maher (the "SPS Agreement"). The Registrant paid Mr. Maher an aggregate
purchase price of $10,000,000 and in exchange the Registrant received all of the
outstanding shares of SPS's common stock. The purchase price was paid by
tendering a single cash payment in the amount of $6,000,000 to Mr. Maher and
delivering to Mr. Maher a three-year subordinated convertible promissory note in
the principal amount of $4,000,000 (the "Note").

     The $6,000,000 portion of the purchase price is subject to adjustment based
upon SPS's adjusted net worth, as shown on the balance sheet as of the closing
date ("Adjusted Net Worth"). If the Adjusted Net Worth is less than $500,000,
then the cash portion of the purchase price will be reduced by the amount by
which SPS's Adjusted Net Worth is less than $500,000. If SPS's Adjusted Net
Worth is greater than $500,000, then the purchase price will be increased by the
amount by which SPS's Adjusted Net Worth is greater than $500,000.

     The Note bears interest at the rate of 5% per year, which rate can increase
if an event of default defined within the Note occurs. During the term of the
Note, interest is payable in arrears on a quarterly basis. Subject to Mr.
Maher's conversion rights, the Registrant can pay off all amounts outstanding
under the Note before its maturity date by providing written notice to Mr. Maher
at least 60 days before the anticipated payoff date. The payment of principal
and interest under the Note is subordinate to the rights of any senior
commercial lenders, such as banks or other financial institutions, which lend
money to the Registrant. Subject to certain limitations, the Note is convertible
into shares of the Registrant's common stock at any time prior to the time the
outstanding principal amount of the Note is paid in full. The initial per share
conversion price is $15, and the conversion price is subject to customary
anti-dilution adjustments. The Registrant has the right to compel Mr. Maher to
convert the Note if the trailing 30-day average price of the Registrant's common
stock exceeds $17 per share and if the shares of the Registrant's common stock
that Mr. Maher is to receive upon conversion of the Note have been registered
under the Securities Act of 1933, as amended.

     In addition, if certain sales milestones are met by SPS following the SPS
Acquisition, the Registrant will pay Mr. Maher, in annual installments, an
aggregate amount of up to 100,000 unregistered shares of the Registrant's common
stock. The parties to the SPS Agreement have entered into a registration rights
agreement granting Mr. Maher piggyback registration rights for any unregistered
shares of the Registrant's common stock that he receives pursuant to the SPS
Agreement, including shares issuable on conversion of the Note.


<PAGE>

     SPS is an infrastructure power management services firm specializing in
engineering, installation and preventative maintenance of standby power systems,
uninterruptible power supply systems, DC power systems and switchgear/control
systems for the telecommunications, aerospace, technology, banking and
information services industries.

RPS Acquisition
- ---------------

     The RPS Acquisition was consummated pursuant to the terms of the Stock
Purchase Agreement, dated October 30, 2007, by and among the Registrant, RPS and
the Sellers (the "RPS Agreement"). As consideration for the RPS Acquisition, the
Registrant delivered to each of the Sellers a certificate representing 50,000
unregistered shares of the Registrant's common stock. The parties to the RPS
Agreement have entered into a registration rights agreement granting the Sellers
piggyback registration rights for any unregistered shares of the Registrant's
common stock they receive pursuant to the RPS Agreement.

     In addition, if certain sales milestones are met by RPS following the RPS
Acquisition, the Registrant will pay the Sellers, in annual installments, a
portion of RPS's post-acquisition sales. Such sales milestones exclude sales
made to SPS, which historically has comprised substantially all of RPS's sales.
The Registrant shall pay the Sellers 5% of RPS's sales, up to the operating plan
amount set by the Registrant in its sole discretion (the "Operating Plan") for
the remainder of calendar year 2007 and for calendar years 2008, 2009, and 2010.
The Registrant shall also pay the Sellers 10% of the amount by which RPS's sales
exceeds the Operating Plan for calendar years 2008, 2009, and 2010.

     RPS supplies lead acid batteries primarily for use by SPS in the design and
installation of standby power systems. SPS was RPS's exclusive selling agent in
the United States.


Item 3.02    Unregistered Sales of Equity Securities.

     As described above in greater detail under Item 2.01 of this Report,
effective on November 16, 2007, the Registrant issued to William Maher a Note in
the principal amount of $4,000,000 in connection with the closing of the SPS
Acquisition. The Note is convertible into shares of the Registrant's common
stock at $15 per share, which amount is subject to adjustment for certain
anti-dilution measures. Mr. Maher can also receive an aggregate amount of up to
100,000 shares of unregistered common stock if certain sales milestones are met
by SPS following the SPS Acquisition. Also as described above in greater detail
under Item 2.01 of this Report, effective on November 16, 2007, the Registrant
issued 50,000 shares of its unregistered common stock to each of William Maher
and Edward Bellamy in connection with the closing of the RPS Acquisition (the
"Restricted Shares").


<PAGE>

     The Registrant issued the Note to Mr. Maher and the Restricted Shares to
Mr. Maher and Mr. Bellamy without registration under Section 5 of the Securities
Act of 1933 in reliance on the exemption from registration contained in Section
4(2) of the Securities Act. Section 4(2) of the Securities Act exempts from
registration "transactions by an issuer not involving any public offering." To
qualify for this exemption, the purchasers of the securities must (1) have
sufficient knowledge and experience in finance and business matters to evaluate
the risk and merits of the investment or be able to bear the investment's
economic risk, (2) have access to the type of information normally provided in a
prospectus and (3) agree not to resell or distribute the securities to the
public absent an effective registration statement. In addition, the Registrant
cannot use any form of public solicitation or general advertising in connection
with the transaction.

     The Registrant believes that all of the requirements to qualify to use the
exemption from registration contained in Section 4(2) of the Securities Act have
been satisfied in connection with the issuance of the Note to Mr. Maher and the
issuance of the Restricted Shares to Mr. Maher and Mr. Bellamy. Specifically,
(1) the Registrant has determined that Mr. Maher and Mr. Bellamy, together with
their advisors, are knowledgeable and experienced in finance and business
matters and thus are able to evaluate the risks and merits of acquiring the Note
and the Restricted Shares and, in the event the Note is converted, the
Registrant's common stock underlying the Note; (2) Mr. Maher and Mr. Bellamy
have advised the Registrant that they are able to bear the economic risk of
acquiring the Note and, in the event the Note is converted, the Registrant's
common stock underlying the Note, and the Restricted Shares; (3) the Registrant
has provided Mr. Maher and Mr. Bellamy with access to the type of information
normally provided in a prospectus; (4) Mr. Maher and Mr. Bellamy have each
agreed not to resell or distribute the securities to the public except as
permitted by the federal securities laws; and (5) the Registrant did not use any
form of public solicitation or general advertising in connection with the
issuance of the Note or the Restricted Shares.


Item 8.01    Other Events.

     On November 16, 2007, the Registrant completed a registered direct offering
(the "Offering") of 1,000,000 shares of the Registrant's common stock pursuant
to the terms of the Placement Agency Agreement with Stephens Inc. entered into
on November 8, 2007. The shares were sold at a price of $13.50 per share for an
aggregate purchase price of $13,500,000. The Registrant paid Stephens Inc., as
the exclusive agent for the Offering, a fee of $675,000, which is equal to 5% of
the gross proceeds of the Offering.

     The Registrant used $6,000,000 of the net proceeds of the Offering to fund
the cash portion of the purchase price for the SPS Acquisition described in Item
2.01 of this Report and used $3.5 million of the net proceeds to prepay
indebtedness due on subordinated convertible promissory notes in the aggregate
outstanding principal amount of $14,000,000 which were issued as partial
consideration for the Registrant's acquisition of substantially all of the
assets of McDowell Research Co., Ltd. in July of 2006.


<PAGE>

Item 9.01    Financial Statements and Exhibits.

     (a)     Financial statements of business acquired.
             ------------------------------------------

     The financial statements required by this item are not being filed
herewith. To the extent that such information is required by this item, the
Registrant will file the financial statements as an amendment to this Current
Report on Form 8-K no later than 71 days after the date hereof.

     (b)     Pro forma financial information.
             --------------------------------

     The pro forma financial information required by this item is not being
filed herewith. To the extent that such information is required by this item,
the Registrant will file the pro forma financial information as an amendment to
this Current Report on Form 8-K no later than 71 days after the date hereof.

     (c)     Exhibits.
             ---------

     99.1    Press Release, dated November 19, 2007, announcing the closing of
the SPS Acquisition and the RPS Acquisition.


<PAGE>


                                   SIGNATURES


     Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.


Date: November 19, 2007                      ULTRALIFE BATTERIES, INC.


                                         By: /s/ Robert W. Fishback
                                             -----------------------------------
                                             Robert W. Fishback
                                             Vice President - Finance and Chief
                                             Financial Officer
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.1
<SEQUENCE>2
<FILENAME>a5549427ex99-1.txt
<DESCRIPTION>EXHIBIT 99.1
<TEXT>
                                                                    Exhibit 99.1

 Ultralife Completes Acquisitions of Stationary Power Services, Inc.
                   and Reserve Power Systems, Inc.

    NEWARK, N.Y.--(BUSINESS WIRE)--Nov. 19, 2007--Ultralife Batteries,
Inc. (NASDAQ: ULBI) has completed the acquisitions of Stationary Power
Services, Inc., and Reserve Power Systems, Inc., effective November
16.

    Under the terms of the Stationary Power Services agreement, the
purchase price consisted of $6 million in cash, a $4 million
non-transferable subordinated convertible note held by the seller and
a performance-based equity incentive payable in up to 100,000
unregistered shares of Ultralife common stock over a period of up to
five years. The $4 million convertible note carries a three-year term
and is convertible into shares of Ultralife common stock at the rate
of $15.00 per share, with a forced conversion feature at $17.00 per
share. Management anticipates that the transaction will be accretive
in the first quarter of 2008. The company used a portion of the net
proceeds from a $13.5 million limited public offering completed on
November 16 to finance the $6 million cash component of the purchase
price.

    The purchase price for Reserve Power Systems consisted of 100,000
unregistered shares of Ultralife common stock, currently valued at
approximately $1.4 million, which were issued upon closing, and a
performance-based earn-out through 2010 payable in cash.

    "These acquisitions serve to broaden our addressable market for
rechargeable power solutions to include the highly attractive standby
power market and to advance our strategy of becoming a value-added
provider of power solutions, accessories and engineering services,"
said John D. Kavazanjian, Ultralife's president and chief executive
officer. "By leveraging Stationary Power Services' reputation for
reliable standby power systems and established customer relationships,
we are in a strong position to capture opportunities in the standby
power market as investment in telecommunications, utility and
transportation infrastructure grows."

    Established in 1989, Stationary Power Services is an
infrastructure power management services firm specializing in the
engineering, installation and preventive maintenance of standby power
systems, uninterrupted power supply systems, DC power systems and
switchgear/control systems for the telecommunications, aerospace,
technology, banking and information services industries. In 2006,
Stationary Power Services generated operating income of $1.3 million
on $8.9 million in revenue. Reserve Power Systems, established in
2006, supplies lead acid batteries primarily for use by Stationary
Power Services in the design and installation of standby power
systems.

    Information about Stationary Power Services is available at:
www.stationarypower.com.

    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, Raytheon, 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, and its McDowell Research operating unit are in Newark,
New York, near Rochester. Ultralife's other operating units are:
Ultralife Batteries (UK) Ltd., in Abingdon, England; Innovative
Solutions Consulting in Hollywood, Maryland; Stationary Power Services
in Clearwater, Florida; 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) and McDowell Research(R) are registered trademarks of
Ultralife Batteries, Inc.


    CONTACT: Ultralife Batteries, Inc.
             Robert W. Fishback, 315-332-7100
             bfishback@ulbi.com
             or
             Investor Relations:
             Lippert/Heilshorn & Associates, Inc.
             Jody Burfening, 212-838-3777
             jburfening@lhai.com
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
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