Ultralife to Commence Shipments Under $6.7 Million Medical Cart Contract

NEWARK, N.Y. - Ultralife Corporation (Nasdaq:ULBI) announced today it has received final IEC certification for its newly developed medical cart battery and intelligent power supply system and will commence initial shipments this month under an expanded strategic supplier agreement with Scott-Clark Medical, a leading provider of medical carts. The original agreement called for shipments until May 2015; the expanded agreement extends the term until September 2016 and increases the initial contract value from approximately $1.6 million to $6.7 million.

Under the strategic supplier agreement, Scott-Clark Medical is combining Ultralife's battery and intelligent power supply system with its own medical carts for sales to hospitals and other medical institutions worldwide. It also plans on marketing Ultralife's battery and intelligent power supply system to other medical cart OEMs. Recently, Scott-Clark Medical signed a multi-year contract with a tier- one medical cart OEM that specializes in upgrading existing units in the field; shipments under this contract are expected to begin in early 2014.

The battery and intelligent power supply system encompasses either one or two hot-swappable, medical-grade lithium batteries and an innovative tilting battery holster, and features the unique ability to charge the batteries on or off the cart, which offers medical staff continuous mobile power and greater flexibility.

"Over the past eighteen months, our new products engineering team has been collaborating with the Scott-Clark team to develop a first-class flexible solution with continuous mobile power to serve both new production and retrofit opportunities in the medical cart industry. With their industry knowledge and market access, Scott-Clark is an ideal partner to help us quickly penetrate the market and realize these exciting new business opportunities," said Michael D. Popielec, Ultralife's President and Chief Executive Officer. "This technically advanced application of our multi-kilowatt module platform is a clear demonstration of our strategy to leverage the proven military-grade reliability of our batteries and chargers to diversify our business into commercial markets. We look forward to the revenue growth opportunities the new medical cart products and business partner relationship will provide."

Richard Flynn, President of Scott-Clark Medical stated, "Ultralife's engineering, design, and test capability coupled with their reputation as a leader in the development of advanced battery technology solutions for demanding applications led us to partner with the company to enhance the initial power design we came to them with for our medical carts. Based on the very positive feedback we received from customers who tested prototypes, we decided to expand our relationship with Ultralife and we are confident that the medical cart customers will embrace this new power supply technology. Ultralife is proving to be a great choice for us to best serve this growing market."

About Ultralife Corporation

Ultralife Corporation 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.

Headquartered in Newark, New York, the company's business segments include: Battery & Energy Products and Communications Systems. Ultralife has operations in North America, Europe and Asia. For more information, visit www.ultralifecorp.com.

About Scott-Clark Medical

Scott-Clark Medical, a leading provider of medical carts and mobile workstations, remains instrumental in leading the development of products that enable point-of-care information services in the medical arena. Through a constant effort to improve and adapt Workstations on Wheels to the developing requirements of healthcare, Scott-Clark sees to match useful products to changing workflows.

The company's headquarters are in Galesburg, MI. For more information, visit www.scott-clark.com.


Ultralife Corporation

Philip Fain

(315) 210-6110


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