ULTRALIFE CORP — Director's Dealing 2006

Oct 3, 2006

SEC Form 4 — Statement of Changes in Beneficial Ownership

Issuer: ULTRALIFE BATTERIES INC (ULBI)
CIK: 0000875657
Period of Report: 2006-09-29

Reporting Person: GRACE BROTHERS LTD (10% Owner)

Non-Derivative Transactions

Date	Security	Code	Shares	Price	A/D	Holdings After	Ownership
2006-09-29	Common Stock	P	100	$9.91	Acquired	3654794	Direct
2006-09-29	Common Stock	P	1200	$9.92	Acquired	3655994	Direct
2006-09-29	Common Stock	P	799	$9.93	Acquired	3656793	Direct
2006-09-29	Common Stock	P	3300	$9.9318	Acquired	3660093	Direct
2006-09-29	Common Stock	P	300	$9.94	Acquired	3660393	Direct
2006-09-29	Common Stock	P	2350	$9.95	Acquired	3662743	Direct
2006-09-29	Common Stock	P	3319	$9.9858	Acquired	3666062	Direct
2006-09-29	Common Stock	P	400	$10	Acquired	3666462	Direct
2006-09-29	Common Stock	P	500	$10.03	Acquired	3666962	Direct
2006-09-29	Common Stock	P	100	$10.04	Acquired	3667062	Direct
2006-09-29	Common Stock	P	1000	$10.059	Acquired	3668062	Direct
2006-09-29	Common Stock	P	500	$10.06	Acquired	3668562	Direct
2006-09-29	Common Stock	P	600	$10.07	Acquired	3669162	Direct
2006-09-29	Common Stock	P	2003	$10.1095	Acquired	3671165	Direct
2006-09-29	Common Stock	P	1635	$10.11	Acquired	3672800	Direct
2006-09-29	Common Stock	P	300	$10.12	Acquired	3673100	Direct
2006-09-29	Common Stock	P	500	$10.13	Acquired	3673600	Direct
2006-09-29	Common Stock	P	500	$10.15	Acquired	3674100	Direct
2006-09-29	Common Stock	P	700	$10.1786	Acquired	3674800	Direct
2006-09-29	Common Stock	P	1000	$10.18	Acquired	3675800	Direct
2006-09-29	Common Stock	P	900	$10.19	Acquired	3676700	Direct
2006-09-29	Common Stock	P	700	$10.2	Acquired	3677400	Direct
2006-09-29	Common Stock	P	300	$10.2133	Acquired	3677700	Direct
2006-09-29	Common Stock	P	300	$10.23	Acquired	3678000	Direct
2006-09-29	Common Stock	P	100	$10.24	Acquired	3678100	Direct
2006-09-29	Common Stock	P	1600	$10.25	Acquired	3679700	Direct
2006-09-29	Common Stock	P	1500	$10.26	Acquired	3681200	Direct
2006-09-29	Common Stock	P	100	$10.27	Acquired	3681300	Direct
2006-09-29	Common Stock	P	200	$10.28	Acquired	3681500	Direct
2006-09-29	Common Stock	P	1039	$10.29	Acquired	3682539	Direct

Footnotes

F1: This is a continuing Form 4 reflecting the remaining transactions from a previous filing.

F2: A continuing Form 4 will be filed to reflect the remaining transactions.