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	200	$9.225	Acquired	3584148	Direct
2006-09-29	Common Stock	P	100	$9.28	Acquired	3584248	Direct
2006-09-29	Common Stock	P	2000	$9.2995	Acquired	3586248	Direct
2006-09-29	Common Stock	P	100	$9.34	Acquired	3586348	Direct
2006-09-29	Common Stock	P	1600	$9.35	Acquired	3587948	Direct
2006-09-29	Common Stock	P	100	$9.37	Acquired	3588048	Direct
2006-09-29	Common Stock	P	400	$9.39	Acquired	3588448	Direct
2006-09-29	Common Stock	P	2920	$9.399	Acquired	3591368	Direct
2006-09-29	Common Stock	P	4900	$9.4	Acquired	3596268	Direct
2006-09-29	Common Stock	P	231	$9.4087	Acquired	3596499	Direct
2006-09-29	Common Stock	P	100	$9.41	Acquired	3596599	Direct
2006-09-29	Common Stock	P	200	$9.415	Acquired	3596799	Direct
2006-09-29	Common Stock	P	1649	$9.42	Acquired	3598448	Direct
2006-09-29	Common Stock	P	600	$9.425	Acquired	3599048	Direct
2006-09-29	Common Stock	P	2999	$9.43	Acquired	3602047	Direct
2006-09-29	Common stock	P	600	$9.4317	Acquired	3602647	Direct
2006-09-29	Common Stock	P	4300	$9.44	Acquired	3606947	Direct
2006-09-29	Common Stock	P	200	$9.445	Acquired	3607147	Direct
2006-09-29	Common Stock	P	3700	$9.45	Acquired	3610847	Direct
2006-09-29	Common Stock	P	300	$9.4567	Acquired	3611147	Direct
2006-09-29	Common Stock	P	903	$9.4589	Acquired	3612050	Direct
2006-09-29	Common Stock	P	4700	$9.46	Acquired	3616750	Direct
2006-09-29	Common Stock	P	3500	$9.4691	Acquired	3620250	Direct
2006-09-29	Common Stock	P	1000	$9.47	Acquired	3621250	Direct
2006-09-29	Common Stock	P	1300	$9.5	Acquired	3622550	Direct
2006-09-29	Common Stock	P	1200	$9.51	Acquired	3623750	Direct
2006-09-26	Common Stock	P	200	$9.52	Acquired	3623950	Direct
2006-09-29	Common Stock	P	200	$9.53	Acquired	3624150	Direct
2006-09-29	Common Stock	P	200	$9.545	Acquired	3624350	Direct
2006-09-26	Common Stock	P	1540	$9.6	Acquired	3625890	Direct

Footnotes

F1: A continuing Form 4 will be filed to reflect the remaining transactions.