-----BEGIN PRIVACY-ENHANCED MESSAGE-----
Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
Originator-Key-Asymmetric:
 MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen
 TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB
MIC-Info: RSA-MD5,RSA,
 U2G4lwAOB9qrTORrrMiJsj9vP+G1eH2l/RfuMgCXBf2EH5PU+KAO+XSaZrYBin+R
 uR6Fq97FoHLwRopLlDzXCQ==

<SEC-DOCUMENT>0001157523-10-000268.txt : 20100125
<SEC-HEADER>0001157523-10-000268.hdr.sgml : 20100125
<ACCEPTANCE-DATETIME>20100122173949
ACCESSION NUMBER:		0001157523-10-000268
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20100115
ITEM INFORMATION:		Entry into a Material Definitive Agreement
ITEM INFORMATION:		Triggering Events That Accelerate or Increase a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20100125
DATE AS OF CHANGE:		20100122

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			ULTRALIFE CORP
		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:		10542952

	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

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	ULTRALIFE BATTERIES INC
		DATE OF NAME CHANGE:	19940224
</SEC-HEADER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>a6152678.htm
<DESCRIPTION>ULTRALIFE CORP. 8-K
<TEXT>
<html>
  <head>
    <title></title>
<!--Copyright 2010 Business Wire, a Berkshire Hathaway company.-->
<!--All rights reserved www.businesswire.com-->
  </head>
  <body style="font-size: 10pt; font-family: Times New Roman">
    <hr style="text-align: center; width: 100%; height: 3.0 pt; color: #000000">
    <hr style="text-align: center; width: 100%; height: 1.0 pt; color: #000000">


    <p style="text-align: center">
      <br>
      <font style="font-size: 12pt; font-family: Times New Roman"><b>United
      States</b></font><b><font style="font-size: 12pt; font-family: Times New Roman"><br style="font-size: 12pt; font-family: Times New Roman"></font><font style="font-size: 12pt; font-family: Times New Roman">Securities
      and Exchange Commission</font></b><br><font style="font-size: 12pt; font-family: Times New Roman"><b>Washington,
      D.C. 20549</b></font><br><br><br><font style="font-size: 18pt; font-family: Times New Roman"><b>FORM
      8-K</b></font><br><br><br><font style="font-size: 12pt; font-family: Times New Roman"><b>Current
      Report Pursuant to</b></font><br><font style="font-size: 12pt; font-family: Times New Roman"><b>Section
      13 or 15(d) of the Securities Exchange Act of 1934</b></font><br><br><br><font style="font-size: 12pt; font-family: Times New Roman"><b>January
      15, 2010</b></font><br>(<font style="font-size: 10pt">Date of Report)</font><br><br><br><font style="font-size: 18pt; font-family: Times New Roman"><b>ULTRALIFE
      CORPORATION</b></font><br><font style="font-size: 10pt; font-family: Times New Roman">(Exact
      name of registrant as specified in its charter)</font><br><br><br>
    </p>
    <div style="text-align:left">
    <table style="margin-bottom: 10.0px; font-size: 10pt; width: 100%; font-family: Times New Roman" cellspacing="0">
      <tr>
        <td valign="top" style="padding-left: 0.0px; width: 33%; text-align: center">
          <p style="margin-bottom: 0px; margin-top: 0px; font-size: 10pt; font-family: Times New Roman">
            <b>Delaware</b>
          </p>
        </td>
        <td valign="bottom" style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; width: 34%; text-align: center">
          <p style="margin-bottom: 0px; margin-top: 0px">
            <b>000-20852</b>
          </p>
        </td>
        <td valign="bottom" style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; width: 33%; text-align: center">
          <p style="margin-bottom: 0px; margin-top: 0px">
            <b>16-1387013</b>
          </p>
        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-left: 0.0px; width: 33%; text-align: center">
          <p style="margin-bottom: 0px; margin-top: 0px">
            (State of incorporation)
          </p>
        </td>
        <td valign="bottom" style="padding-left: 0.0px; width: 34%; text-align: center">
          <p style="margin-bottom: 0px; margin-top: 0px">
            (Commission File Number)
          </p>
          <p style="margin-bottom: 0px; margin-top: 0px">
            &#160;
          </p>
        </td>
        <td valign="bottom" style="padding-left: 0.0px; width: 33%; text-align: center">
          <p style="margin-bottom: 0px; margin-top: 0px">
            (IRS Employer Identification No.)
          </p>
          <p style="margin-bottom: 0px; margin-top: 0px">
            &#160;
          </p>
        </td>
      </tr>
    </table>
    </div>
    <p>
      <br>

    </p>
    <div style="text-align:left">
    <table style="margin-bottom: 10.0px; font-size: 10pt; width: 100%; font-family: Times New Roman" cellspacing="0">
      <tr>
        <td valign="bottom" style="padding-left: 0.0px; width: 70%; text-align: center">
          <p style="margin-bottom: 0px; margin-top: 0px">
            <b>2000 Technology Parkway, Newark, New York</b>
          </p>
        </td>
        <td valign="top" style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; width: 30%; text-align: center">
          <p style="margin-bottom: 0px; margin-top: 0px">
            <b>14513</b>
          </p>
        </td>
      </tr>
      <tr>
        <td valign="bottom" style="padding-left: 0.0px; width: 70%; text-align: center">
          <p style="margin-bottom: 0px; margin-top: 0px">
            <font style="font-size: 10pt; font-family: Times New Roman">(Address
            of principal executive offices)</font>
          </p>
        </td>
        <td valign="top" style="padding-left: 0.0px; width: 30%; text-align: center">
          <p style="margin-bottom: 0px; margin-top: 0px">
            (Zip Code)
          </p>
        </td>
      </tr>
    </table>
    </div>
    <p style="text-align: center">
      <br>
      <font style="font-size: 10pt; font-family: Times New Roman"><b>(315)
      332-7100</b></font><br>(Registrant&#8217;s telephone number, including area
      code)<br><br>
    </p>
    <hr style="height: 1.0 pt; width: 100%; color: #000000; text-align: center">


    <p style="text-align: center">
      <br>

    </p>
    <p style="text-align: left">
      <font style="font-size: 10pt; font-family: Times New Roman">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 </font>(see General Instruction A.2. below):
    </p>
    <p>
      <font style="font-size: 10pt; font-family: Arial Unicode MS">&#8414;</font>
      <font style="font-size: 10pt; font-family: Times New Roman">Written
      communications pursuant to Rule 425 under the Securities Act (17 CFR
      230.425)</font>
    </p>
    <p>
      <font style="font-size: 10pt; font-family: Arial Unicode MS">&#8414;</font>
      <font style="font-size: 10pt; font-family: Times New Roman">Soliciting
      material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
      240.14a-12)</font>
    </p>
    <p>
      <font style="font-size: 10pt; font-family: Arial Unicode MS">&#8414;</font>
      <font style="font-size: 10pt; font-family: Times New Roman">Pre-commencement
      communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
      240.14d-2(b))</font>
    </p>
    <p>
      <font style="font-size: 10pt; font-family: Arial Unicode MS">&#8414;</font>
      <font style="font-size: 10pt; font-family: Times New Roman">Pre-commencement
      communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR
      240.13e-4(c))</font>
    </p>
    <hr style="height: 1.0 pt; width: 100%; color: #000000; text-align: center">
    <hr style="height: 3.0 pt; width: 100%; color: #000000; text-align: center">


    <p>

    </p>
    <div style="margin-right: 0pt; text-indent: 0pt; margin-bottom: 10pt; margin-left: 0pt; width: 100%">
      <div>
        <div style="text-align: left">

        </div>
      </div>
      <div style="page-break-after: always">
        <div style="text-align: center">

        </div>
        <div style="text-align: center">
          <hr style="height: 1.5pt; color: black">

        </div>
      </div>
      <div>
        <div style="text-align: right">

        </div>
      </div>
    </div>
    <p>

    </p>
    <p>
      <b>Item 1.01. &#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Entry into a Material Definitive Agreement.</b>
    </p>
    <p>
      The information provided under Item 2.04 of this Current Report on Form
      8-K regarding the Forbearance Agreement, as such term is defined below,
      is incorporated by reference into this Item 1.01.
    </p>
    <p>

    </p>
    <p>
      <b>Item 2.04. &#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Triggering Events That Accelerate or Increase a
      Direct Financial Obligation or an Obligation under an Off-Balance Sheet
      Arrangement.</b>
    </p>
    <p>

    </p>
    <p>
      <u><b>Background</b></u>
    </p>
    <p style="text-align: justify">
      Effective January 27, 2009, Ultralife Corporation (the &#8220;Company&#8221;)
      entered into an Amended and Restated Credit Agreement (the &#8220;Restated
      Credit Agreement&#8221;) with JPMorgan Chase Bank, N.A. and Manufacturers
      Traders Trust Company (together, the &#8220;Lenders&#8221;) with JPMorgan Chase
      Bank, N.A. acting as the administrative agent (the &#8220;Agent&#8221;). The
      Restated Credit Agreement reflects the previous ten amendments to the
      original credit agreement between the Company and the Lenders dated
      June&#160;30, 2004 and modifies certain of those provisions. The Restated
      Credit Agreement has a revolver loan commitment of $35,000,000 with a
      maturity date of June&#160;30, 2010. Generally, borrowings under the Restated
      Credit Agreement bear interest based primarily on the Prime Rate plus 50
      to 200 basis points or LIBOR plus 300 to 500 basis points.&#160;&#160;The credit
      facility is collateralized by essentially all of the Company&#8217;s assets,
      including those of its subsidiaries.&#160;&#160;The term loan component of the
      credit facility was fully repaid by the Company in July 2009.
    </p>
    <p>

    </p>
    <p>
      Effective June&#160;28, 2009, the Company entered into Waiver and Amendment
      Number One to Amended and Restated Credit Agreement (the &#8220;Waiver and
      Amendment&#8221;) with the Lenders and the Agent. The Waiver and Amendment
      provided that the Lenders and the Agent would waive their right to
      exercise their respective rights and remedies under the credit facility
      arising from the Company&#8217;s failure to comply with the financial
      covenants in the Restated Credit Agreement with respect to the fiscal
      quarter ended June&#160;28, 2009. In addition to a number of revisions to
      non-financial covenants, the Waiver and Amendment revised the applicable
      revolver rate under the Restated Credit Agreement to an interest rate
      structure based on the Prime Rate plus 200 basis points or LIBOR plus
      500 basis points.
    </p>
    <p>

    </p>
    <p>
      Under the Restated Credit Agreement, as amended by the Waiver and
      Amendment, the Company is required to maintain a debt to earnings ratio
      at or below 2.75 to 1 and a fixed charge ratio at or above 1.25 to
      1.&#160;&#160;On October 30, 2009, the Company advised the Agent that it failed to
      comply with these financial covenants as of September 30, 2009.&#160;&#160;By
      letter dated October 30, 2009, the Agent provided the Company with
      notice that it was in covenant default pursuant to Section 7(e) of the
      Restated Credit Agreement, but the Lenders did not exercise their rights
      to accelerate the loan or terminate the loan commitment under the
      Restated Credit Agreement.&#160;&#160;&#160;
    </p>
    <p>

    </p>
    <p>
      <u><b>RBS Business Capital Commitment Letter</b></u><b> </b>
    </p>
    <p>

    </p>
    <p>
      On January 14, 2010, RBS Business Capital, a division of Citizens
      Financial Group (&#8220;RBS&#8221;), provided a commitment letter to the Company
      (the &#8220;Commitment Letter&#8221;), to which the Company agreed, wherein RBS
      offered its commitment to provide the Company a $35,000,000 senior
      secured asset based revolving credit facility by February 12, 2010,
      provided that all conditions to closing are resolved to the satisfaction
      of RBS&#8217;s legal counsel.&#160;&#160;
    </p>
    <p>

    </p>
    <p>
      <u><b>Demand Letter</b></u>
    </p>
    <p>

    </p>
    <p>
      On January 15, 2010, the Company received a demand letter from the Agent
      in connection with the Restated Credit Agreement (the &#8220;Demand
      Letter&#8221;).&#160;&#160;In the Demand Letter, the Agent claimed that the Company had
      (i) failed to satisfy and comply with the financial covenants set forth
      in Section 6.09 of the Restated Credit Agreement, and (ii) failed to pay
      interest and expenses when due as set forth in Section 7(b) of the
      Restated Credit Agreement.&#160;&#160;The Company believes that it has timely made
      all interest payments required to be made to the Lenders under the
      Restated Credit Agreement.&#160;&#160;The Agent declared the outstanding
      principal, unpaid interest and unpaid fees in the aggregate amount of
      $15,913,543.16 immediately due and payable in full.&#160;&#160;The Agent demanded
      payment of such amount by January 22, 2010.&#160;&#160;The Agent also terminated
      the Lender&#8217;s commitment to lend additional funds to the Company under
      the Restated Credit Agreement and increased the interest rate on the
      outstanding principal to the default rate set under Section 2.13(c) of
      the Restated Credit Agreement.&#160;&#160;
    </p>
    <div style="margin-right: 0pt; text-indent: 0pt; margin-bottom: 10pt; margin-left: 0pt; width: 100%">
      <div>
        <div style="text-align: left">

        </div>
      </div>
      <div style="page-break-after: always">
        <div style="text-align: center">

        </div>
        <div style="text-align: center">
          <hr style="height: 1.5pt; color: black">

        </div>
      </div>
      <div>
        <div style="text-align: right">

        </div>
      </div>
    </div>
    <p>
      <u><b>Forbearance Agreement</b></u>
    </p>
    <p>

    </p>
    <p>
      On January 22, 2010, the Company entered into a Forbearance and
      Amendment Number Two to the Restated Credit Agreement with the Lenders
      (the &#8220;Forbearance Agreement&#8221;).&#160;&#160;Under the Forbearance Agreement, the
      Lenders agreed to forbear until February 18, 2010 from exercising their
      respective rights and remedies under the Restated Credit Agreement and
      delay the date by which the Company must pay the Lenders the amount
      declared due and payable under the Demand Letter.&#160;&#160;The Lenders can elect
      to terminate the Forbearance Agreement at any time if the Company
      defaults on additional provisions of the Restated Credit Agreement or if
      the Company breaches the Forbearance Agreement.
    </p>
    <p>

    </p>
    <p>
      Under the Forbearance Agreement, the Company is required to make
      payments on the outstanding principal owed under Restated Credit
      Agreement pursuant to the following schedule: (i) $1,500,000 on January
      22, 2010; (ii) $3,500,000 on or before January 29, 2010; and (iii)
      $500,000 commencing February 5, 2010 and continuing on each Friday
      through the term of the Forbearance Agreement.&#160;&#160;The Company was also
      required to pay a forbearance fee of $62,500 and all of the fees and
      expenses incurred by the Lenders.&#160;&#160;The Forbearance Agreement also
      reaffirms the Lenders&#8217; termination of their commitment to lend
      additional funds to the Company under the Restated Credit Agreement and
      increase of the interest rate on the outstanding principal to the
      default rate set under Section 2.13(c) of the Restated Credit Agreement.
    </p>
    <p>

    </p>
    <p>
      The Company is also required by the Forbearance Agreement to move
      forward and obtain the $35,000,000 senior secured asset based revolving
      credit facility from RBS by February 18, 2010 on the terms described in
      the Commitment Letter.&#160;&#160;Pursuant to the Forbearance Agreement, the
      Company cannot allow the &#8220;Availability Not Borrowed,&#8221; as such term is
      used in the Forbearance Agreement, to fall below $9,000,000.&#160;&#160;The
      Forbearance Agreement also obligates the Company to provide certain
      financial reports to the Agent within certain prescribed time periods
      and it amends the terms of the Restated Credit Agreement.
    </p>
    <p>

    </p>
    <p>
      The Forbearance Agreement also requires the Company to release and waive
      all claims the Company may have had against the Lenders and waive any
      and all defenses it had to payment of the amounts owed under the
      Restated Credit Agreement.&#160;&#160;The Company acknowledged that it owed
      outstanding principal, unpaid current interest and unpaid fees in the
      amount of $15,930,402.95 under the Restated Credit Agreement as of
      January 20, 2010.
    </p>
    <p>

    </p>
    <p>
      The Company is actively working with RBS to obtain the $35,000,000
      senior secured asset based revolving credit facility by February 18,
      2010.&#160;&#160;The Company can provide no assurance that it will be able to
      successfully obtain the $35,000,000 senior secured asset based revolving
      credit facility from RBS by February 18, 2010 on the terms contained in
      the Commitment Letter.&#160;&#160;Nor can the Company provide any assurances that
      it will be able to comply with all of the terms of the Forbearance
      Agreement.&#160;&#160;If the Company is not successful in obtaining the
      $35,000,000 senior secured asset based revolving credit facility from
      RBS by February 18, 2010 on the terms contained in the Commitment Letter
      or if the Company is unable to comply with the terms of the Forbearance
      Agreement, the Lenders would be able to demand payment in full of all
      outstanding principal, unpaid interest and unpaid fees owed by the
      Company under the Restated Credit Agreement.&#160;&#160;The Company currently does
      not have sufficient liquidity to satisfy such payment demand, were it to
      occur.&#160;&#160;In such event, the Lenders could commence foreclosure on some or
      all of the Company&#8217;s assets that serve as collateral for the debt owed
      the Lenders, or exercise other rights and remedies given to them under
      the Restated Credit Agreement.&#160;&#160;Substantially all of the Company&#8217;s
      assets, tangible and intangible, serve as collateral for the debt that
      is owed to the Lenders.&#160;&#160;In that event, the Company would likely be
      compelled to seek protection under Chapter 11 of the United States
      Bankruptcy Code.&#160;&#160;If this were to occur, it could have a material
      adverse effect on the Company&#8217;s business, financial condition and
      results of operations.
    </p>
    <p>

    </p>
    <p>
      The Company&#8217;s press release is attached as Exhibit 99.1 to this Form
      8-K. The Company anticipates that it will file the Demand Letter and
      Forbearance Agreement with the Company&#8217;s Annual Report on Form 10-K for
      the fiscal year ended December 31, 2009.&#160;&#160;
    </p>
    <p>

    </p>
    <p style="white-space: nowrap">
      <b>Item 9.01.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Financial Statements and Exhibits.</b>
    </p>
    <p>

    </p>
    <p style="text-indent: 30.0px; white-space: nowrap">
      <i>(d)&#160;&#160;Exhibits.</i>
    </p>
    <div style="text-align:left">
    <table style="margin-bottom: 10.0px; font-size: 10pt; width: 100%; font-family: Times New Roman" cellspacing="0">
      <tr>
        <td style="width: 8%">
          &#160;
        </td>
        <td valign="top" style="border-bottom: solid black 1.0pt; padding-left: 0.0px; width: 12%; text-align: center">
          Exhibit No.
        </td>
        <td valign="top" style="border-bottom: solid black 1.0pt; padding-left: 0.0px; width: 40%; text-align: center">
          Description
        </td>
        <td style="border-bottom: solid black 1.0pt; width: 40%">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="width: 8%">

        </td>
        <td valign="top" style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; width: 12%; text-align: center">
          99.1
        </td>
        <td valign="top" style="padding-left: 0.0px; width: 40%; text-align: left">
          Press Release, dated January 22, 2010.
        </td>
        <td style="width: 40%">

        </td>
      </tr>
    </table>
    </div>
    <p>

    </p>
    <div style="margin-right: 0pt; text-indent: 0pt; margin-bottom: 10pt; margin-left: 0pt; width: 100%">
      <div>
        <div style="text-align: left">

        </div>
      </div>
      <div style="page-break-after: always">
        <div style="text-align: center">

        </div>
        <div style="text-align: center">
          <hr style="height: 1.5pt; color: black">

        </div>
      </div>
      <div>
        <div style="text-align: right">

        </div>
      </div>
    </div>
    <p>

    </p>
    <p style="text-align: center">
      <font style="font-size: 10pt; font-family: Times New Roman"><b>SIGNATURES</b></font>
    </p>
    <p style="text-indent: 30.0px">
      <font style="font-size: 10pt; font-family: Times New Roman">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.</font>
    </p>
    <p style="text-indent: 30.0px">

    </p>
    <div style="text-align:left">
    <table style="margin-bottom: 10.0px; font-size: 10pt; width: 100%; font-family: Times New Roman" cellspacing="0">
      <tr>
        <td valign="top" style="padding-left: 0.0px; width: 5%; text-align: left">
          <p style="margin-bottom: 0px; margin-top: 0px">
            Date:
          </p>
        </td>
        <td valign="top" style="padding-left: 0.0px; width: 45%; text-align: left">
          <p style="margin-bottom: 0px; margin-top: 0px">
            January 22, 2010
          </p>
        </td>
        <td valign="top" style="padding-left: 0.0px; width: 50%; text-align: left">
          <p style="margin-bottom: 0px; margin-top: 0px">
            <b>ULTRALIFE CORPORATION</b>
          </p>
        </td>
      </tr>
      <tr>
        <td style="width: 5%">

        </td>
        <td style="width: 45%">

        </td>
        <td style="width: 50%">
          &#160;
        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-left: 0.0px; padding-bottom: 2.0px; width: 5%; text-align: left">
          <p style="margin-bottom: 0px; margin-top: 0px">
            &#160;
          </p>
        </td>
        <td valign="top" style="padding-left: 0.0px; padding-bottom: 2.0px; width: 45%; text-align: left">
          <p style="margin-bottom: 0px; margin-top: 0px">
            &#160;
          </p>
        </td>
        <td valign="top" style="border-bottom: solid black 1.0pt; padding-left: 0.0px; width: 50%; text-align: left">
          <p style="margin-bottom: 0px; margin-top: 0px">
            /s/ Philip A. Fain
          </p>
        </td>
      </tr>
      <tr>
        <td style="width: 5%">

        </td>
        <td style="width: 45%">

        </td>
        <td valign="top" style="padding-left: 0.0px; width: 50%; text-align: left">
          <p style="margin-bottom: 0px; margin-top: 0px">
            Philip A. Fain
          </p>
        </td>
      </tr>
      <tr>
        <td style="width: 5%">

        </td>
        <td style="width: 45%">

        </td>
        <td valign="top" style="padding-left: 0.0px; width: 50%; text-align: left">
          <p style="margin-bottom: 0px; margin-top: 0px">
            Chief Financial Officer &amp; Treasurer
          </p>
        </td>
      </tr>
    </table>
    </div>
    <p style="text-align: center">

    </p>
  </body>
</html>
<!--<!DOCTYPE html
     PUBLIC "-//W3C//DTD XHTML 1.0 Strict//EN"
     "http://www.w3.org/TR/xhtml1/DTD/xhtml1-strict.dtd">-->
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.1
<SEQUENCE>2
<FILENAME>a6152678ex99_1.htm
<DESCRIPTION>EXHIBIT 99.1
<TEXT>
<html>
  <head>
    <title></title>
<!--Copyright 2010 Business Wire, a Berkshire Hathaway company.-->
<!--All rights reserved www.businesswire.com-->
  </head>
  <body style="font-size: 8pt; font-family: Times New Roman">
    <p style="text-align: right">
      <b>Exhibit 99.1</b>
    </p>
    <p style="text-align: center">
      <font style="font-size: 12pt; font-family: Times New Roman"><b>Ultralife
      Corporation Receives Commitment Letter for $35 Million Revolving Credit
      Facility from RBS Business Capital</b></font>
    </p>
    <p>
      NEWARK, N.Y.--(BUSINESS WIRE)--January 22, 2010--Ultralife Corporation
      (NASDAQ: ULBI), by letter dated January 14, 2010,<b> </b>has secured a
      commitment from RBS Business Capital (&#8220;RBS&#8221;), a division of Citizens
      Financial Group, for a $35 million senior secured asset-based revolving
      credit facility. This revolving credit facility will replace the
      company&#8217;s $35 million senior secured revolving credit facility with its
      current lenders, JPMorgan Chase Bank, N.A. and Manufacturers and Traders
      Trust Company (&#8220;current lenders&#8221;).
    </p>
    <p>
      &#8220;Refinancing our existing revolving credit facility with an asset-based
      facility has been our highest priority,&#8221; said John D. Kavazanjian,
      Ultralife&#8217;s president and chief executive officer. &#8220;Following
      discussions with various lenders, we selected RBS because of their
      ability to work with us on a global basis with very favorable financing
      terms. We look forward to forging a strong relationship with RBS and
      will now move forward to finalize the agreement with them. We expect to
      close on the new asset-based facility by February 18.&#8221;
    </p>
    <p>
      On January 15, 2010, Ultralife&#8217;s current lenders provided it with a
      letter, which demanded payment of the outstanding revolver balance as a
      result of events of defaults related to failure to comply with certain
      covenants under the existing revolving credit facility. Subsequently,
      Ultralife and the current lenders entered into a Forbearance Agreement,
      effective January 22, 2010, by which the current lenders agreed not to
      exercise their rights and remedies under the existing credit facility
      until February 18, 2010. After the payment of $1.5 million concurrent
      with the execution of the Forbearance Agreement, the outstanding balance
      under the existing revolving credit facility will be $14.3 million.
    </p>
    <p>
      <b>About Ultralife Corporation</b>
    </p>
    <p>
      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.
    </p>
    <p>
      Ultralife&#8217;s family of brands includes: Ultralife Batteries, Stationary
      Power Services, RPS Power Systems, ABLE, McDowell Research, RedBlack
      Communications and AMTI. Ultralife&#8217;s operations are in North America,
      Europe and Asia. For more information, visit <u>www.ultralifecorp.com</u>.
    </p>
    <p>
      This press release may contain forward-looking statements based on
      current expectations that involve a number of risks and uncertainties.
      As with any financing, the company can provide no assurance that it will
      be able to successfully obtain the $35,000,000 senior secured asset
      based revolving credit facility by February 18, 2010 on the terms
      contained in the commitment letter.
    </p>
    <p>
      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, inability to secure
      adequate financing and the possibility of intangible asset impairment
      charges that may be taken should management decide to retire one or more
      of the brands of acquired companies in the future. The Company cautions
      investors not to place undue reliance on forward-looking statements,
      which reflect the Company&#8217;s analysis only as of today&#8217;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.
    </p>
    <p>
      CONTACT:<br><u>Ultralife Corporation</u><br>Julius Cirin, 315-332-7100<br><u>jcirin@ultralifecorp.com</u><br>or<br>Investor
      Relations:<br><u>Lippert/Heilshorn &amp; Associates, Inc.</u><br>Jody
      Burfening, 212-838-3777<br><u>jburfening@lhai.com</u>
    </p>
  </body>
</html>
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
-----END PRIVACY-ENHANCED MESSAGE-----
