<SEC-DOCUMENT>0001157523-11-001501.txt : 20110310
<SEC-HEADER>0001157523-11-001501.hdr.sgml : 20110310
<ACCEPTANCE-DATETIME>20110310093813
ACCESSION NUMBER:		0001157523-11-001501
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20110308
ITEM INFORMATION:		Results of Operations and Financial Condition
ITEM INFORMATION:		Cost Associated with Exit or Disposal Activities
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20110310
DATE AS OF CHANGE:		20110310

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:		11676977

	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>a6641887.htm
<DESCRIPTION>ULTRALIFE CORPORATION 8-K
<TEXT>
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    <p style="text-align: center">
      <font style="font-family: Times New Roman; font-size: 12pt"><b>United
      States</b></font><b><font style="font-family: Times New Roman; font-size: 12pt"><br style="font-family: Times New Roman; font-size: 12pt"></font><font style="font-family: Times New Roman; font-size: 12pt">Securities
      and Exchange Commission</font></b><br><font style="font-family: Times New Roman; font-size: 12pt"><b>Washington,
      D.C. 20549</b></font><br><br><br><font style="font-family: Times New Roman; font-size: 18pt"><b>FORM
      8-K</b></font><br><br><br><font style="font-family: Times New Roman; font-size: 12pt"><b>Current
      Report Pursuant to</b></font><br><font style="font-family: Times New Roman; font-size: 12pt"><b>Section
      13 or 15(d) of the Securities Exchange Act of 1934</b></font><br><br><br><font style="font-family: Times New Roman; font-size: 12pt"><b>March
      8, 2011</b></font><br>(<font style="font-size: 10pt">Date of Report)</font><br><br><br><font style="font-family: Times New Roman; font-size: 18pt"><b>ULTRALIFE
      CORPORATION</b></font><br><font style="font-family: Times New Roman; font-size: 10pt">(Exact
      name of registrant as specified in its charter)</font><br><br><br>
    </p>
<div style="text-align:left">
    <table cellspacing="0" style="font-family: Times New Roman; font-size: 10pt; margin-bottom: 10.0px; width: 100%">
      <tr>
        <td valign="top" style="width: 33%; text-align: center; padding-left: 0.0px">
          <p style="margin-top: 0px; font-family: Times New Roman; font-size: 10pt; margin-bottom: 0px">
            <b>Delaware</b>
          </p>
        </td>
        <td valign="bottom" style="padding-right: 0.0px; white-space: nowrap; width: 34%; text-align: center; padding-left: 0.0px">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>000-20852</b>
          </p>
        </td>
        <td valign="bottom" style="padding-right: 0.0px; white-space: nowrap; width: 33%; text-align: center; padding-left: 0.0px">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>16-1387013</b>
          </p>
        </td>
      </tr>
      <tr>
        <td valign="top" style="width: 33%; text-align: center; padding-left: 0.0px">
          <p style="margin-top: 0px; margin-bottom: 0px">
            (State of incorporation)
          </p>
        </td>
        <td valign="bottom" style="width: 34%; text-align: center; padding-left: 0.0px">
          <p style="margin-top: 0px; margin-bottom: 0px">
            (Commission File Number)
          </p>
        </td>
        <td valign="bottom" style="width: 33%; text-align: center; padding-left: 0.0px">
          <p style="margin-top: 0px; margin-bottom: 0px">
            (IRS Employer Identification No.)
          </p>
        </td>
      </tr>
    </table>
    </div>
    <p>
      <br>

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


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

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


    <p>

    </p>
    <div style="text-indent: 0pt; margin-left: 0pt; width: 100%; margin-bottom: 10pt; margin-right: 0pt">
      <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="color: black; height: 1.5pt">

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

        </div>
      </div>
    </div>
<div style="text-align:left">
    <table cellspacing="0" style="font-family: Times New Roman; font-size: 10pt; width: 100%; margin-bottom: 10.0px">
      <tr>
        <td valign="top" style="width: 12%; text-align: left; padding-left: 0.0px">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>Item 2.02</b>
          </p>
        </td>
        <td valign="top" style="width: 88%; text-align: left; padding-left: 0.0px">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>Results of Operation and Financial Condition.</b>
          </p>
        </td>
      </tr>
    </table>
    </div>
    <p style="text-indent: 30.0px; font-family: Times New Roman; font-size: 10pt">
      Attached as Exhibit 99.1 and incorporated herein by reference is a copy
      of the press release issued by Ultralife Corporation (the &#8220;Company&#8221;) on
      March 10, 2011 relating to the exit activities described below in Item
      2.05 of this Report, which will be included in the Company&#8217;s financial
      results for the first three quarters of 2011 and for the full year ended
      December 31, 2011.&#160;&#160;The press release also updates the Company&#8217;s
      guidance for 2011 operations. As a result of exiting the Energy Services
      business and reclassifying it as a discontinued operation when complete,
      management now expects to report revenue of approximately $168 million
      from continuing operations.&#160;&#160;Excluding SATCOM system shipments in both
      periods, revenue is expected to grow by 18% over 2010.&#160;&#160;Operating income
      is expected to be no less than $10.5 million, excluding the Energy
      Services closing costs of approximately $3.2 million relating to the
      exit activities described below in Item 2.05, representing an operating
      margin of 6.3%.&#160;&#160;This compares favorably to the 2010 operating margin of
      4.4% adjusting for the $13.8 million non-cash impairment charge.
    </p>
    <p style="text-indent: 30.0px; font-family: Times New Roman; font-size: 10pt">
      The press release is being furnished pursuant to Item 2.02 of Form 8-K
      and General Instruction B.2 thereunder.&#160;&#160;The information in the press
      release shall not be deemed &#8220;filed&#8221; for purposes of Section 18 of the
      Securities Exchange Act of 1934, as amended, or otherwise subject to the
      liabilities of that section, nor shall it be deemed incorporated by
      reference in any filing under the Securities Act of 1933, as amended.
    </p>
<div style="text-align:left">
    <table cellspacing="0" style="font-family: Times New Roman; font-size: 10pt; width: 100%; margin-bottom: 10.0px">
      <tr>
        <td valign="top" style="width: 12%; text-align: left; padding-left: 0.0px">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>Item 2.05</b>
          </p>
        </td>
        <td valign="top" style="width: 88%; text-align: left; padding-left: 0.0px">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>Costs Associated with Exit or Disposal Activities.</b>
          </p>
        </td>
      </tr>
    </table>
    </div>
    <p style="text-indent: 30.0px; text-align: justify">
      On March 8, 2011, senior management of the Company, as authorized by the
      Company&#8217;s Board of Directors, decided to exit the Company&#8217;s Energy
      Services business.&#160;&#160;&#160;As a result of management&#8217;s ongoing review of the
      Company&#8217;s business segments and products, and taking into account the
      growth and profitability potential of the Energy Services segment as
      well as its sizeable operating losses over the last several years, we
      determined it was appropriate to refocus the Company&#8217;s operations on
      profitable growth opportunities presented in our other segments, Battery
      &amp; Energy Products and Communication Systems.&#160;&#160;In the fourth quarter of
      2010, we recorded a non-cash impairment charge of $13.8 million to
      write-off the goodwill and intangible assets and certain fixed assets
      associated with the standby power portion of our Energy Services
      business.&#160;&#160;We anticipate that the actions taken to exit our Energy
      Services business will result in the elimination of approximately 40
      jobs and the closing of five facilities, primarily in California,
      Florida and Texas, over several months.&#160;&#160;We expect to complete all exit
      activities with respect to our Energy Services segment by the end of the
      third quarter.&#160;&#160;Upon completion, we will reclassify our Energy Services
      segment as a discontinued operation.
    </p>
    <p style="text-indent: 30.0px; text-align: justify">
      In connection with the exit activities described above, the Company
      expects that it will record total restructuring charges of approximately
      $3.2 million, the majority of which are related to employee-related
      costs, including termination benefits, lease termination costs and
      inventory and fixed asset write-downs, of which approximately $1.2
      million will be recorded in the first quarter of 2011.&#160;&#160;The cash
      component of the aggregate charge is expected to be approximately $2.2
      million.
    </p>
    <div style="text-indent: 0pt; margin-left: 0pt; width: 100%; margin-bottom: 10pt; margin-right: 0pt">
      <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="color: black; height: 1.5pt">

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

        </div>
      </div>
    </div>
    <p style="text-align: justify">
      <b>Forward-Looking Statements</b>
    </p>
    <p style="text-indent: 30.0px; text-align: justify">
      This report on Form 8-K may contain forward-looking statements based on
      current expectations that involve a number of risks and
      uncertainties.&#160;&#160;The potential risks and uncertainties that could cause
      actual results to differ materially include: worsening global economic
      conditions, increased competitive environment and pricing pressures, and
      disruptions related to restructuring actions and delays. The Company
      cautions investors not to place undue reliance on forward-looking
      statements, which reflect our analysis only as of the date of this
      filing.&#160;&#160;We undertake no obligation to publicly update forward-looking
      statements to reflect subsequent events or circumstances.&#160;&#160;Further
      information on these factors and other factors that could affect the
      Company&#8217;s financial results is included in our filings with the United
      States Securities &amp; Exchange Commission, including our latest Annual
      Report on Form 10-K.
    </p>
<div style="text-align:left">
    <table cellspacing="0" style="font-family: Times New Roman; font-size: 10pt; width: 100%; margin-bottom: 10.0px">
      <tr>
        <td valign="top" style="width: 12%; text-align: left; padding-left: 0.0px">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>Item 9.01</b>
          </p>
        </td>
        <td valign="top" style="width: 88%; text-align: left; padding-left: 0.0px">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>Financial Statements and Exhibits.</b>
          </p>
        </td>
      </tr>
    </table>
    </div>
    <p style="margin-left: 60.0px; white-space: nowrap">
      (d)&#160;&#160;Exhibits.&#160;&#160;The following exhibit is being furnished as part of this
      Report.
    </p>
<div style="text-align:left">
    <table cellspacing="0" style="font-family: Times New Roman; font-size: 10pt; width: 100%; margin-bottom: 10.0px">
      <tr>
        <td valign="top" style="width: 10%; text-align: left; padding-left: 0.0px">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>Exhibit</b>
          </p>
        </td>
        <td style="width: 2%">
          &#160;
        </td>
        <td style="width: 65%">

        </td>
        <td style="width: 23%">

        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-bottom: 2.0px; width: 10%; text-align: left; padding-left: 0.0px">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <u><b>Number</b></u>
          </p>
        </td>
        <td style="width: 2%">

        </td>
        <td valign="top" style="border-bottom: solid black 1.0pt; width: 65%; text-align: center; padding-left: 0.0px">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>Description</b>
          </p>
        </td>
        <td style="width: 23%">

        </td>
      </tr>
      <tr>
        <td style="width: 10%">

        </td>
        <td style="width: 2%">

        </td>
        <td style="width: 65%">

        </td>
        <td style="width: 23%">
          &#160;
        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-right: 0.0px; white-space: nowrap; width: 10%; text-align: left; padding-left: 0.0px">
          99.1
        </td>
        <td style="width: 2%">

        </td>
        <td valign="top" style="width: 65%; text-align: left; padding-left: 0.0px">
          Press Release of Ultralife Corporation dated March 10, 2011
        </td>
        <td style="width: 23%">

        </td>
      </tr>
    </table>
    </div>
    <p style="text-align: center">
      <font style="font-family: Times New Roman; font-size: 10pt"><b>SIGNATURES</b></font>
    </p>
    <p style="text-indent: 30.0px">
      <font style="font-family: Times New Roman; font-size: 10pt">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 cellspacing="0" style="font-family: Times New Roman; font-size: 10pt; width: 100%; margin-bottom: 10.0px">
      <tr>
        <td valign="top" style="width: 5%; text-align: left; padding-left: 0.0px">
          <p style="margin-top: 0px; margin-bottom: 0px">
            Date:
          </p>
        </td>
        <td valign="top" style="width: 45%; text-align: left; padding-left: 0.0px">
          <p style="margin-top: 0px; margin-bottom: 0px">
            March 10, 2011
          </p>
        </td>
        <td style="width: 4%">

        </td>
        <td valign="top" style="width: 46%; text-align: left; padding-left: 0.0px">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>ULTRALIFE CORPORATION</b>
          </p>
        </td>
      </tr>
      <tr>
        <td style="width: 5%">

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

        </td>
        <td style="width: 4%">

        </td>
        <td style="width: 46%">
          &#160;
        </td>
      </tr>
      <tr>
        <td valign="top" style="width: 5%; text-align: left; padding-left: 0.0px">
          <p style="margin-top: 0px; margin-bottom: 0px">
            &#160;
          </p>
        </td>
        <td style="width: 45%">

        </td>
        <td style="width: 4%">

        </td>
        <td valign="top" style="width: 46%; text-align: left; padding-left: 0.0px">
          <p style="margin-top: 0px; margin-bottom: 0px">
            &#160;
          </p>
        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-bottom: 2.0px; width: 5%; text-align: left; padding-left: 0.0px">
          <p style="margin-top: 0px; margin-bottom: 0px">
            &#160;
          </p>
        </td>
        <td valign="top" style="padding-bottom: 2.0px; width: 45%; text-align: left; padding-left: 0.0px">
          <p style="margin-top: 0px; margin-bottom: 0px">
            &#160;
          </p>
        </td>
        <td valign="top" style="padding-bottom: 2.0px; width: 4%; text-align: left; padding-left: 0.0px">
          <p style="margin-top: 0px; margin-bottom: 0px">
            By:
          </p>
        </td>
        <td valign="top" style="border-bottom: solid black 1.0pt; width: 46%; text-align: left; padding-left: 0.0px">
          <p style="margin-top: 0px; margin-bottom: 0px">
            /s/ Peter F. Comerford
          </p>
        </td>
      </tr>
      <tr>
        <td style="width: 5%">

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

        </td>
        <td style="width: 4%">

        </td>
        <td valign="top" style="width: 46%; text-align: left; padding-left: 0.0px">
          <p style="margin-top: 0px; margin-bottom: 0px">
            Peter F. Comerford
          </p>
        </td>
      </tr>
      <tr>
        <td style="width: 5%">

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

        </td>
        <td style="width: 4%">

        </td>
        <td valign="top" style="width: 46%; text-align: left; padding-left: 0.0px">
          <p style="margin-top: 0px; margin-bottom: 0px">
            Vice President of Administration and<br>General Counsel
          </p>
          <p style="margin-top: 0px; margin-bottom: 0px">
            &#160;
          </p>
        </td>
      </tr>
    </table>
    </div>
    <p style="text-align: center">
      <b>EXHIBIT INDEX</b>
    </p>
<div style="text-align:left">
    <table cellspacing="0" style="font-family: Times New Roman; font-size: 10pt; width: 100%; margin-bottom: 10.0px">
      <tr>
        <td valign="top" style="width: 10%; text-align: left; padding-left: 0.0px">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>Exhibit</b>
          </p>
        </td>
        <td style="width: 2%">
          &#160;
        </td>
        <td style="width: 65%">

        </td>
        <td style="width: 23%">

        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-bottom: 2.0px; width: 10%; text-align: left; padding-left: 0.0px">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <u><b>Number</b></u>
          </p>
        </td>
        <td style="width: 2%">

        </td>
        <td valign="top" style="border-bottom: solid black 1.0pt; width: 65%; text-align: center; padding-left: 0.0px">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>Description</b>
          </p>
        </td>
        <td style="width: 23%">

        </td>
      </tr>
      <tr>
        <td style="width: 10%">

        </td>
        <td style="width: 2%">

        </td>
        <td style="width: 65%">

        </td>
        <td style="width: 23%">
          &#160;
        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-right: 0.0px; white-space: nowrap; width: 10%; text-align: left; padding-left: 0.0px">
          99.1
        </td>
        <td style="width: 2%">

        </td>
        <td valign="top" style="width: 65%; text-align: left; padding-left: 0.0px">
          Press Release of Ultralife Corporation dated March 10, 2011
        </td>
        <td style="width: 23%">

        </td>
      </tr>
    </table>
    </div>
    <p style="margin-left: 30.0px; white-space: nowrap">

    </p>
    <p style="text-align: left">

    </p>
    <p style="text-align: left">

    </p>
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<TYPE>EX-99.1
<SEQUENCE>2
<FILENAME>a6641887-ex991.htm
<DESCRIPTION>EXHIBIT 99.1
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    <p style="text-align: right">
      <b>Exhibit 99.1</b>
    </p>
    <p style="text-align: center">
      <font style="font-family: Times New Roman; font-size: 12pt"><b>Ultralife
      to Exit Energy Services Business</b></font>
    </p>
    <p style="text-align: center">
      <font style="font-family: Times New Roman; font-size: 12pt"><b>Company
      Provides Operating Income Guidance for Fiscal 2011</b></font>
    </p>
    <p>
      NEWARK, N.Y.--(BUSINESS WIRE)--March 10, 2011--Ultralife Corporation
      (NASDAQ: ULBI) announced today that it will exit and close its Energy
      Services business. For the past two years, cautious spending and
      continued delays in implementing large capital projects by customers in
      the lead acid standby power industry have negatively impacted results
      for the company&#8217;s Energy Services segment.
    </p>
    <p>
      In the fourth quarter of 2010, the company recorded a non-cash
      impairment charge of $13.8 million to write-off the goodwill and
      intangible assets and certain fixed assets associated with its Energy
      Services business. Since 2008, this business has incurred significant
      operating losses.
    </p>
    <p>
      In connection with exiting its Energy Services business, the company
      expects to incur closing costs of approximately $3.2 million of which
      approximately $1.2 million will be recorded in the first quarter of
      2011. The cash component of the closing costs is approximately $2.2
      million and is expected to be offset by cash received from accounts
      receivables and liquidated assets. The company expects to complete the
      exit by the end of the third quarter. Once completed, the Energy
      Services segment will be reclassified as a discontinued operation.
    </p>
    <p>
      &#8220;Since joining Ultralife two months ago, I have been conducting reviews
      of each business segment and the products in our portfolio with a view
      toward assessing their contribution to the company&#8217;s long-term
      sustainable growth and quality of earnings. As part of this exercise, we
      have examined the growth and profitability potential of the Energy
      Services business, taking into consideration its sizeable operating
      losses over the last several years and the time and resources required
      to achieve hurdle rate profitability levels going forward,&#8221; said Michael
      D. Popielec, Ultralife&#8217;s president and chief executive officer.
    </p>
    <p>
      &#8220;By exiting the Energy Services business, we will be able to focus our
      resources on profitable growth opportunities, and expand our presence in
      commercial markets and internationally. This includes the development of
      new lithium ion storage technologies for renewable energy applications
      as well as for the transition from lead acid to lithium ion products in
      the standby power industry,&#8221; said Popielec.
    </p>
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    <p>
      <b>Updated Fiscal 2011 Guidance</b>
    </p>
    <p>
      Separately, management has updated its full year guidance for 2011. The
      updated guidance reflects management&#8217;s decision to exit the Energy
      Services business and, once completed, to reclassify the Energy Services
      segment as a discontinued operation. Management now expects to report
      revenue of approximately $168 million from continuing operations.
      Excluding SATCOM system shipments in both periods, revenue is expected
      to grow by 18% over 2010. Operating income is expected to be no less
      than $10.5 million, excluding Energy Services closing costs of
      approximately $3.2 million, representing an operating margin of 6.3%.
      This compares favorably to the 2010 operating margin of 4.4% adjusting
      for the $13.8 million non-cash impairment charge. Management cautions
      that the timing of orders and shipments may cause variability in
      quarterly results.
    </p>
    <p>
      <b>About Ultralife Corporation</b>
    </p>
    <p>
      Ultralife Corporation, which began as a battery company, serves its
      markets with products and services ranging from portable 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>
      Headquartered in Newark, New York, the company&#8217;s business segments
      include: Battery &amp; Energy Products and Communications Systems. Ultralife
      has operations 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.
      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&#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><b>Ultralife Corporation</b></u><br>Philip Fain,
      315-332-7100<br><u>pfain@ulbi.com</u><br>or<br>Investor Relations:<br><u><b>Lippert/Heilshorn
      &amp; Associates, Inc.</b></u><br>Jody Burfening, 212-838-3777<br><u>jburfening@lhai.com</u>
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