Ultralife Corporation Receives $7 Million Order from the U.S. Air Force

Ultralife Corporation (NASDAQ: ULBI) has received an order valued at approximately $7 million to produce, manage and support the Communication Switch Subsystem for the U.S. Air Force Battle Control System-Mobile (BCS-M) program. This order is under a five-year $30 million contract originally awarded to Ultralife’s RedBlack Communications unit in May 2004, under which approximately $10 million in products and services has been delivered. In conjunction with awarding the company this order, the Air Force has extended the contract’s period of performance to December 2010.

“This order and contract extension is a direct reflection of the quality products, systems engineering and technical services that our RedBlack Communications team provides to the Defense Department,” said John D. Kavazanjian, Ultralife’s president and chief executive officer. “As an outgrowth of the work we have performed under the BCS-M program, we have also supplied and serviced three Communication Switch Subsystems under another Air Force program.”

The Communications Switch Subsystem, developed by RedBlack Communications, is a distributed architecture voice communication subsystem that provides multiple operators, each from a fixed workstation, the capability to select, control and communicate over multiple radio, telephonic and intercom networks in both classified and unclassified modes. To date, RedBlack has delivered seven systems for use in developing the BCS-M. An eighth system will be delivered in first quarter of 2009.

The BCS-M system is an on-going Air Force evolutionary acquisition/spiral development program to update and eventually replace the legacy ground theater air Command, Control and Reporting Center. In addition to supplying state-of-the-art communications hardware and software, RedBlack Communications provides engineering, program management, manufacturing, integration, testing and integrated lifecycle support and training for the Communications Switch Subsystem throughout the duration of the contract.

About Ultralife Corporation

Ultralife Corporation, which began as a battery company, now serves its markets with products and services ranging from portable and standby power solutions to communications and electronics systems. Through its engineering and collaborative approach to problem solving, Ultralife serves government, defense and commercial customers across the globe.

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

Ultralife® and RedBlack™ are trademarks of Ultralife Corporation.

Contacts

Ultralife Corporation
Robert Fishback, 315-332-7100
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Jody Burfening, 212-838-3777
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