ULTRALIFE CORP - Director's Dealing 2006

SEC Form 4 — Statement of Changes in Beneficial Ownership

Issuer: ULTRALIFE BATTERIES INC (ULBI)
CIK: 0000875657
Period of Report: 2006-09-26

Reporting Person: GRACE BROTHERS LTD (10% Owner)

Date	Security	Code	Shares	Price	A/D	Holdings After	Ownership
2006-09-26	Common Stock	P	400	$9.02	Acquired	3475797	Direct
2006-09-26	Common Stock	P	800	$9.0486	Acquired	3476597	Direct
2006-09-26	Common Stock	P	5667	$9.05	Acquired	3482264	Direct
2006-09-26	Common Stock	P	400	$9.06	Acquired	3482664	Direct
2006-09-26	Common Stock	P	500	$9.07	Acquired	3483164	Direct
2006-09-26	Common Stock	P	400	$9.0775	Acquired	3483564	Direct
2006-09-26	Common Stock	P	800	$9.08	Acquired	3484364	Direct
2006-09-26	Common Stock	P	500	$9.094	Acquired	3484864	Direct
2006-09-26	Common Stock	P	1000	$9.096	Acquired	3485864	Direct
2006-09-26	Common Stock	P	41865	$9.1	Acquired	3527729	Direct
2006-09-26	Common Stock	P	700	$9.11	Acquired	3528429	Direct
2006-09-26	Common Stock	P	300	$9.12	Acquired	3528729	Direct
2006-09-26	Common Stock	P	2100	$9.13	Acquired	3530829	Direct
2006-09-26	Common Stock	P	2700	$9.14	Acquired	3533529	Direct
2006-09-26	Common Stock	P	9900	$9.15	Acquired	3543429	Direct
2006-09-26	Common Stock	P	200	$9.16	Acquired	3543629	Direct
2006-09-26	Common Stock	P	200	$9.18	Acquired	3543829	Direct
2006-09-26	Common Stock	P	100	$9.19	Acquired	3543929	Direct
2006-09-26	Common Stock	P	4000	$9.1992	Acquired	3547929	Direct
2006-09-26	Common Stock	P	36019	$9.2	Acquired	3583948	Direct