Ultralife Batteries, Inc. Awarded New U.S. Army
Lithium Battery Production Contract
biz.yahoo.com
NEWARK, N.Y., April 13 /PRNewswire/ -- Ultralife Batteries, Inc. (Nasdaq: ULBI - news) today announced that it has been awarded a new three year contract to provide its BA-X372/U primary (disposable) lithium-manganese dioxide batteries to the U.S. Army. The initial contract order is valued at $572,000 and has the potential to reach approximately $2.5 million per year should the Army exercise its option to purchase additional batteries, which it has done on previous contracts. The contract was awarded by the U.S. Army Communications and Electronics Command (CECOM) in Ft. Monmouth, New Jersey. This is the third major contract Ultralife has received for this battery since 1994. Production is expected to begin in May with the first deliveries in June.
The BA-X372/U is a 6-volt cylindrical battery consisting of two lithium-manganese dioxide cells connected in series (1.3 inches high by 0.65 inches in diameter and weighing 0.7 ounces) and provides a capacity of more than 460 milliampere-hours. These batteries are primarily used to provide the memory back-up power for the most widely used military ``Singars' radio. The lightweight, compact batteries offer the Army many benefits including the ability to operate safely over a wide temperature range. They also are environmentally friendlier than other batteries the Army could have selected.
James Sullivan, Ultralife Vice President of Sales, stated: ``The receipt of this contract is a further verification of Ultralife's technical competence in advanced battery technology and demonstrates our commitment to produce a reliable and cost effective product for the U.S. Armed Forces.'
Ultralife Batteries, Inc., an ISO-9001 quality certified company, manufactures and markets a comprehensive line of high-performance lithium batteries. The company's primary (disposable) lithium batteries are used in a wide variety of consumer, industrial, and military products. The company's advanced solid polymer rechargeable batteries are being commercialized for cellular telephones, notebook computers and many other portable electronic products. Key customers include Fyrnetics, Fyrnetics, Maple Chase, Sears, Radio Shack, Eveready and the national defense agencies of the United States and the United Kingdom.
This document contains certain forward-looking statements and information that are based on the beliefs of management as well as assumptions made by and information currently available to management. The statements contained in this document relating to matters that are not historical facts are forward- looking statements that involve risks and uncertainties, including, but not limited to, future demand for the Company's products and services, the successful commercialization of the Company's advanced rechargeable batteries, general economic conditions, government and environmental regulation, competition and customer strategies, technological innovations in the primary and rechargeable battery industries, changes in the Company's business strategy or development plans, capital deployment, business disruptions, raw materials supplies, and other risks and uncertainties, certain of which are beyond the Company's control. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may differ materially from those described herein as anticipated, believed, estimated or expected. A more detailed description of such uncertainties is contained in the Company filings with the Securities and Exchange Commission, such as the Company's Annual Report on Form 10-K for the fiscal year ended June 30, 1999.
Detailed information on Ultralife is available at the Company's web site, ultralifebatteries.com.
SOURCE: Ultralife Batteries, Inc.
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If the past is any guide, these Army contracts tend to be high margin for Ultralife. - DPR
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