Ultralife Batteries Receives Military Battery OrdersMay 01, 2002 by Jeff Shepard
Ultralife Batteries Inc. (Newark, NY) announced that it has been awarded a five-year production contract by the US Army Communications and Electronics Command (CECOM) to provide three types of primary (non-rechargeable) lithium-manganese dioxide batteries to the US Army. The contract provides for order releases approximately every six months over a five-year period with a maximum potential value of up to $32.0 million.
Combined, these batteries comprise what is called the Small Cell Lithium-Manganese Dioxide Battery Group under CECOM's NextGen II acquisition strategy. A major objective of this acquisition is to maintain a domestic production base of a sufficient capacity to meet peacetime demands and have the ability to surge quickly to meet deployment demands. Ultralife also intends to bid on two additional NextGen II five-year battery procurements, the Large Cylindrical and Rectangular Battery Groups.
Ultralife President and CEO John Kavazanjian said, "We are delighted to have achieved this major milestone in our company's history. This contract will provide five years of stable revenue that will enhance our ability to achieve and sustain profitability and revenue growth. It also contributes significantly to the important and rapidly growing military segment of our business."