<SEC-DOCUMENT>0001157523-11-002503.txt : 20110502
<SEC-HEADER>0001157523-11-002503.hdr.sgml : 20110502
<ACCEPTANCE-DATETIME>20110429173129
ACCESSION NUMBER:		0001157523-11-002503
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20110429
ITEM INFORMATION:		Results of Operations and Financial Condition
ITEM INFORMATION:		Other Events
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20110502
DATE AS OF CHANGE:		20110429

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:		11796412

	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>a6703861.htm
<DESCRIPTION>ULTRALIFE CORPORATION 8-K
<TEXT>
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    <p style="text-align: center">
      <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-family: Times New Roman; font-size: 12pt"></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>April
      29, 2011</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="font-size: 10pt; width: 100%; font-family: Times New Roman; margin-bottom: 10.0px" cellspacing="0">
      <tr>
        <td style="width: 33%; padding-left: 0.0px; text-align: center" valign="top">
          <p style="font-size: 10pt; margin-top: 0px; margin-bottom: 0px; font-family: Times New Roman">
            <b>Delaware</b>
          </p>
        </td>
        <td style="width: 34%; padding-left: 0.0px; white-space: nowrap; text-align: center; padding-right: 0.0px" valign="bottom">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>000-20852</b>
          </p>
        </td>
        <td style="width: 33%; padding-left: 0.0px; white-space: nowrap; text-align: center; padding-right: 0.0px" valign="bottom">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>16-1387013</b>
          </p>
        </td>
      </tr>
      <tr>
        <td style="width: 33%; padding-left: 0.0px; text-align: center" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            (State of incorporation)
          </p>
        </td>
        <td style="width: 34%; padding-left: 0.0px; text-align: center" valign="bottom">
          <p style="margin-top: 0px; margin-bottom: 0px">
            (Commission File Number)
          </p>
        </td>
        <td style="width: 33%; padding-left: 0.0px; text-align: center" valign="bottom">
          <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 style="font-size: 10pt; width: 100%; font-family: Times New Roman; margin-bottom: 10.0px" cellspacing="0">
      <tr>
        <td style="width: 70%; padding-left: 0.0px; text-align: center" valign="bottom">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>2000 Technology Parkway, Newark, New York</b>
          </p>
        </td>
        <td style="width: 30%; padding-left: 0.0px; white-space: nowrap; text-align: center; padding-right: 0.0px" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>14513</b>
          </p>
        </td>
      </tr>
      <tr>
        <td style="width: 70%; padding-left: 0.0px; text-align: center" valign="bottom">
          <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 style="width: 30%; padding-left: 0.0px; text-align: center" valign="top">
          <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="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-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="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; width: 100%; margin-left: 0pt; text-indent: 0pt; margin-bottom: 10pt">
      <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 2.02 Results of Operation and Financial Condition.</b><br>
    </p>
    <p style="font-size: 10pt; text-indent: 30.0px; text-align: justify; font-family: Times New Roman">
      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
      April 29, 2011 relating to a $2.7 million charge, which will be
      accounted for as a reduction to revenues, to reflect a proposed
      settlement with the U.S. government related to three exigent contracts
      that were completed between 2003 and 2004, as more fully described below
      in Item 8.01 of this Report, which charge will be included in the
      Company&#8217;s financial results for the first fiscal quarter of 2011 and for
      the full year ended December 31, 2011.
    </p>
    <p style="font-size: 10pt; text-indent: 30.0px; text-align: justify; font-family: Times New Roman">
      As a result of the $2.7 million charge, management has updated its
      guidance for 2011 revenue and operating income from continuing
      operations and now expects revenue of approximately $165 million and
      operating income of approximately $7.8 million.&#160;&#160;This guidance takes
      into account management&#8217;s previously announced decision to exit the
      Energy Services business and, once completed, to reclassify the Energy
      Services segment as a discontinued operation.
    </p>
    <p style="font-size: 10pt; text-indent: 30.0px; text-align: justify; font-family: Times New Roman">
      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>
    <p style="text-indent: 60.0px; text-align: justify">

    </p>
    <p style="text-align: justify">
      <b>Item 8.01 Other Events.</b><br>
    </p>
    <p style="text-indent: 30.0px; text-align: justify">
      As disclosed in the Company&#8217;s Form 10-K for the period ended December
      31, 2010, the Company had recently received a proposed settlement from
      the U.S. Attorney&#8217;s office with respect to ongoing discussions it has
      had regarding three exigent, non-bid contracts with the U.S. government
      that have been subject to an audit and final price adjustment.&#160;&#160;In
      September 2005, the Defense Contracting Audit Agency presented its
      findings related to its audits of the three exigent contracts and
      suggested a potential pricing adjustment of $1.4 million related to
      reductions in the cost of materials that occurred prior to the final
      negotiation of these contracts.&#160;&#160;The Company fully cooperated with these
      audits and furnished the government with requested information and
      documents.
    </p>
    <p style="text-indent: 30.0px; text-align: justify">
      Under applicable federal law, the Company may have been subject to
      treble damages and penalties associated with the potential pricing
      adjustment.&#160;&#160;In light of the uncertainty, the Company decided to enter
      into discussions with the government in April to negotiate a
      settlement.&#160;&#160;On April 21, 2011, the Company was advised by the
      government that there was a $2.7 million settlement-in-principle to
      resolve all claims related to the contracts.&#160;&#160;The settlement remains
      subject to final approval by the Department of Justice.
    </p>
    <p style="text-indent: 30.0px; text-align: justify">
      As a result of this action, the Company will record a $2.7 million
      charge as a reduction to revenues for the first quarter of
      2011.&#160;&#160;Payment terms have yet to be finalized with the U.S. government.
    </p>
    <div style="margin-right: 0pt; width: 100%; margin-left: 0pt; text-indent: 0pt; margin-bottom: 10pt">
      <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 style="white-space: nowrap; text-align: justify">
      &#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<b>Forward-Looking
      Statements</b><br>
    </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.&#160;&#160;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>
    <p style="text-align: justify">

    </p>
    <p style="text-align: justify">
      <b>Item 9.01 Financial Statements and Exhibits.</b><br>
    </p>
    <p style="text-indent: 30.0px; text-align: justify">
      (d)&#160;&#160;Exhibits.&#160;&#160;The following exhibit is being furnished as part of this
      Report.<br>
    </p>
    <div style="text-align:center">
    <table style="font-size: 10pt; width: 100%; margin-left:auto;margin-right:auto; font-family: Times New Roman; margin-bottom: 10.0px" cellspacing="0">
      <tr>
        <td style="width: 8%; padding-left: 0.0px; text-align: left; border-bottom: solid black 1.0pt" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>Exhibit</b><br><b>Number</b>
          </p>
        </td>
        <td style="width: 2%">
          &#160;
        </td>
        <td style="width: 90%; padding-left: 0.0px; text-align: center; border-bottom: solid black 1.0pt" valign="bottom">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>Description</b>
          </p>
        </td>
      </tr>
      <tr>
        <td style="width: 8%">

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

        </td>
        <td style="width: 90%">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="width: 8%; padding-left: 0.0px; white-space: nowrap; text-align: left; padding-right: 0.0px" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            99.1
          </p>
        </td>
        <td style="width: 2%">

        </td>
        <td style="width: 90%; padding-left: 0.0px; text-align: left" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            Press Release of Ultralife Corporation dated April 29, 2011
          </p>
        </td>
      </tr>
    </table>
    </div>
    <p style="margin-left: 60.0px; white-space: nowrap; text-align: justify">

    </p>
    <p style="text-align: left">
      <font style="font-family: Times New Roman; font-size: 10pt"><b>SIGNATURES</b></font><br>
    </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 style="font-size: 10pt; width: 100%; font-family: Times New Roman; margin-bottom: 10.0px" cellspacing="0">
      <tr>
        <td style="width: 5%; padding-left: 0.0px; text-align: left" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            Date:
          </p>
        </td>
        <td style="width: 45%; padding-left: 0.0px; text-align: left" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            April 29, 2011
          </p>
        </td>
        <td style="width: 4%">

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

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

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

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

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

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

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

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

        </td>
        <td style="width: 46%; padding-left: 0.0px; text-align: left" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            Chief Financial Officer and
          </p>
        </td>
      </tr>
      <tr>
        <td style="width: 5%">

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

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

        </td>
        <td style="width: 46%; padding-left: 0.0px; text-align: left" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            Treasurer
          </p>
        </td>
      </tr>
    </table>
    </div>
    <p style="text-align: center">

    </p>
    <p>
      <b>EXHIBIT INDEX</b><br>
    </p>
    <div style="text-align:center">
    <table style="font-size: 10pt; width: 100%; margin-left:auto;margin-right:auto; font-family: Times New Roman; margin-bottom: 10.0px" cellspacing="0">
      <tr>
        <td style="width: 8%; padding-left: 0.0px; text-align: left; border-bottom: solid black 1.0pt" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>Exhibit</b><br><b>Number</b>
          </p>
        </td>
        <td style="width: 2%; padding-left: 0.0px; padding-bottom: 2.0px; text-align: left" valign="top">
          &#160;
        </td>
        <td style="width: 90%; padding-left: 0.0px; text-align: center; border-bottom: solid black 1.0pt" valign="bottom">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>Description</b>
          </p>
        </td>
      </tr>
      <tr>
        <td style="width: 8%">

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

        </td>
        <td style="width: 90%; padding-left: 0.0px; text-align: left" valign="top">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="width: 8%; padding-left: 0.0px; white-space: nowrap; text-align: left; padding-right: 0.0px" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            99.1
          </p>
        </td>
        <td style="width: 2%">

        </td>
        <td style="width: 90%; padding-left: 0.0px; text-align: left" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            Press Release of Ultralife Corporation dated April 29, 2011
          </p>
        </td>
      </tr>
    </table>
    </div>
    <p>

    </p>
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<DOCUMENT>
<TYPE>EX-99.1
<SEQUENCE>2
<FILENAME>a6703861ex991.htm
<DESCRIPTION>EXHIBIT 99.1
<TEXT>
<html>
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    <title></title>
<!--Copyright 2011 Business Wire, a Berkshire Hathaway company.-->
<!--All rights reserved www.businesswire.com-->
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  <body style="font-family: Times New Roman; font-size: 8pt">
    <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
      to Record $2.7 Million Charge in First Quarter 2011</b></font>
    </p>
    <p style="text-align: center">
      <font style="font-size: 12pt; font-family: Times New Roman"><b>Settlement-in-Principle
      on DCAA Exigent Contract Audit</b></font>
    </p>
    <p style="text-align: center">
      <font style="font-size: 12pt; font-family: Times New Roman"><b>Management
      Updates 2011 Guidance</b></font>
    </p>
    <p>
      NEWARK, N.Y.--(BUSINESS WIRE)--April 29, 2011--Ultralife Corporation
      (NASDAQ: ULBI) announced today that first quarter 2011 results will
      include a $2.7 million charge, which will be accounted for as a
      reduction to revenues, to reflect a proposed settlement with the U.S.
      government related to three exigent contracts that were completed
      between 2003 and 2004.
    </p>
    <p>
      As disclosed in the Form 10-K for the period ended December 31, 2010
      filed with the Securities and Exchange Commission, the company advised
      that it had received a proposed settlement from the US Attorney&#8217;s Office
      with respect to ongoing discussions it has had regarding the three
      exigent, non-bid contracts with the U.S. government that have been
      subject to an audit and final price adjustment. In September&#160;2005, the
      Defense Contracting Audit Agency (&#8220;DCAA&#8221;) presented its findings related
      to the audits of the three exigent contracts, suggesting a potential
      pricing adjustment of $1.4 million related to reductions in the cost of
      materials that occurred prior to the final negotiation of these
      contracts. Ultralife fully cooperated with these audits and continued to
      furnish to the government requested information and documents.
    </p>
    <p>
      Under applicable federal law, the company may have been subject to
      treble damages and penalties associated with the potential pricing
      adjustment. In light of the uncertainty, the company decided to enter
      into discussions with the U.S. Attorney&#8217;s Office in April to negotiate a
      settlement which would be in the best interests of its customers,
      employees and shareholders.
    </p>
    <p>
      On April 21, Ultralife was advised by the government that there was a
      $2.7 million settlement-in-principle to resolve all claims related to
      the contracts, subject to final approval by the Department of Justice.
      As a result, Ultralife will record a $2.7 million charge as a reduction
      in revenues for the first quarter of 2011. Payment terms remain to be
      finalized with the U.S. government.
    </p>
    <p>
      &#8220;Our decision to move forward with the proposed settlement reflects our
      desire to avoid any further expense and consumption of time devoted to
      this matter,&#8221; said Michael D. Popielec, Ultralife&#8217;s president and chief
      executive officer. &#8220;Throughout the negotiating process, we have
      maintained strong relationships with our customers in the U.S.
      government. With this issue soon to be behind us, we look forward to
      concentrating all of our efforts on developing and delivering innovative
      new power products and communications systems that meet the soldier
      modernization requirements of an increasingly mobile military.&#8221;
    </p>
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    <p>
      <b>Updated 2011 Guidance</b>
    </p>
    <p>
      Management has updated its guidance for 2011 revenue and operating
      income from continuing operations reflecting the $2.7 million charge and
      now expects revenue of approximately $165 million and operating income
      of approximately $7.8 million. This guidance takes into account
      management&#8217;s previously announced decision to exit the Energy Services
      business and, once completed, to reclassify the Energy Services segment
      as a discontinued operation.
    </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>
    </p>
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