Acquisition Expands Ultralife’s Communications Systems Portfolio

Ultralife Corporation (NASDAQ: ULBI) has acquired substantially all of the assets and assumed substantially all of the liabilities of the tactical communications products business of Science Applications International Corporation (SAIC) (NYSE: SAI) for a total of approximately $5.7 million in cash, effective as of March 20, 2009. For the fiscal year ended January 31, 2009, SAIC’s communications products business generated revenue of approximately $7 million. Ultralife anticipates that this acquisition will be accretive in 2009.

The tactical communications products business, located in Virginia Beach, Virginia, designs, develops and manufactures tactical communications products including amplifiers, man-portable systems, cables, power solutions and ancillary communications equipment that will be sold by Ultralife under the current products’ brand name, AMTI. The business has built a reputation for innovative design and manufacturing excellence evidenced by the high level of performance and reliability of its fielded products. Customers include global militaries, special operations forces, law enforcement and the ISR (Intelligence, Surveillance & Reconnaissance) community.

“This acquisition is the perfect strategic fit for our communications systems business, as it provides Ultralife with direct entrée into the handheld radio/amplifier market with well-designed, durable products that complement Ultralife’s communications systems offerings,” said John D. Kavazanjian, Ultralife’s president and chief executive officer. “Adding a well-respected line of superior military communications system products and a first-class design team will strengthen our competitive position in the U.S. and international government/defense sectors.

“In particular, AMTI amplifiers carry various standardization and interoperability certifications, including the Joint Interoperability Test Command certification, which are important prerequisites for meeting today’s customer requirements.” Kavazanjian concluded, “The acquisition also adds tactical communications products to our portfolio of systems offerings to sell through our established distribution channels.