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	1200	$9.6033	Acquired	3627090	Direct
2006-09-29	Common Stock	P	500	$9.62	Acquired	3627590	Direct
2006-09-29	Common Stock	P	1400	$9.63	Acquired	3628990	Direct
2006-09-29	Common Stock	P	500	$9.64	Acquired	3629490	Direct
2006-09-29	Common Stock	P	400	$9.6475	Acquired	3629890	Direct
2006-09-29	Common Stock	P	1600	$9.65	Acquired	3631490	Direct
2006-09-29	Common Stock	P	308	$9.66	Acquired	3631798	Direct
2006-09-29	Common Stock	P	1000	$9.67	Acquired	3632798	Direct
2006-09-29	Common Stock	P	600	$9.6783	Acquired	3633398	Direct
2006-09-29	Common Stock	P	1600	$9.68	Acquired	3634998	Direct
2006-09-29	Common Stock	P	1400	$9.6843	Acquired	3636398	Direct
2006-09-29	Common Stock	P	1850	$9.6897	Acquired	3638248	Direct
2006-09-29	Common Stock	P	1200	$9.69	Acquired	3639448	Direct
2006-09-29	Common Stock	P	3900	$9.7	Acquired	3643348	Direct
2006-09-29	Common Stock	P	6737	$9.71	Acquired	3650085	Direct
2006-09-29	Common Stock	P	400	$9.72	Acquired	3650485	Direct
2006-09-29	Common Stock	P	100	$9.73	Acquired	3650585	Direct
2006-09-29	Common Stock	P	200	$9.75	Acquired	3650785	Direct
2006-09-29	Common Stock	P	100	$9.78	Acquired	3650885	Direct
2006-09-29	Common Stock	P	300	$9.79	Acquired	3651185	Direct
2006-09-29	Common Stock	P	261	$9.81	Acquired	3651446	Direct
2006-09-29	Common Stock	P	100	$9.82	Acquired	3651546	Direct
2006-09-29	Common Stock	P	600	$9.83	Acquired	3652146	Direct
2006-09-29	Common Stock	P	300	$9.84	Acquired	3652446	Direct
2006-09-29	Common Stock	P	100	$9.85	Acquired	3652546	Direct
2006-09-29	Common Stock	P	400	$9.86	Acquired	3652946	Direct
2006-09-29	Common Stock	P	689	$9.8669	Acquired	3653635	Direct
2006-09-29	Common Stock	P	459	$9.8778	Acquired	3654094	Direct
2006-09-29	Common Stock	P	200	$9.89	Acquired	3654294	Direct
2006-09-29	Common Stock	P	400	$9.9	Acquired	3654694	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.