Ultralife Batteries reports $7.9 million reduction in McDowell Research purchase price

NEWARK, N.Y., 10 Oct. 2007. Ultralife Batteries Inc. has agreed with the sellers of McDowell Research to reduce the purchase price relating to Ultralife's acquisition of McDowell Research in July 2006. The negotiated reduction of $7.9 million reduces the total purchase price from approximately $28.4 million to $20.5 million.

NEWARK, N.Y., 10 Oct. 2007.Ultralife Batteries Inc. has agreed with the sellers of McDowell Research to reduce the purchase price relating to Ultralife's acquisition of McDowell Research in July 2006. The negotiated reduction of $7.9 million reduces the total purchase price from approximately $28.4 million to $20.5 million.

Under the May 1, 2006 acquisition agreement, Ultralife acquired McDowell Research for a purchase price of approximately $25 million consisting of $5 million in cash and a $20 million convertible note held by the sellers, plus an additional $3.4 million for a purchase price adjustment based on the value of certain assets acquired as of the closing.

In the first quarter of 2007, Ultralife paid $1.5 million of the outstanding purchase price adjustment with $1.9 million remaining as an accrued liability.

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