China and its first volume shipment of the new version of our 9-volt lithium batteries and saw continued activity and is lithium-thionyl chloride line particularly in the automated meter reading segment.

Ultralife China is also seeing several new customers as well and has some very strong Thin Cell product. The Thin Cell packages, our industry leading lithium manganese oxide chemistry in a foil limited package with total flexibility in size and thickness down to as lowest 0.6 millimeters. The unique offerings it seem great interest in Tracking/RFID and smart card application.

Communications Systems sales were robust $30 million fueled by shipments on the SATCOM-On-The-Move order that we received early in the second quarter. Shipment on this order will be completed for early in the fourth quarter.

In Energy services, while we have seen increases in project activity, capital expenditure delays late in the quarter caused revenue to be lighter than we had expect. We still expect to see some pickup with traditionally a slow fourth quarter in energy services.

New products continue to be an important part of our sales and margin growth. We recently released our newest version of our 2590 family, the high capacity version. We now to feel the rechargeable battery above the capacity of non-rechargeable sulfur dioxide BA-5590 battery, over 7 amp-hour, and to keep our non-rechargeable products ahead of that curve, we also released our new 13 amp-hour D cell.

The capacity more than 15% higher and already industry late leading D cell, we now can construct versions of our BA-5590 with that cell. Bringing its industry leading capacity for the 11 amp hours to 13 amp hours and do the same with other products take advantage of this new capability.

In Communications Systems, we have also extended our product line. Our A320 pocket amplifier for handheld radios has now passed (inaudible) communication security testing including the DAMA SATCOM protocol and together with higher stock in radio, it now comprises the first handheld radio system ever to be certified by the US Military for use in satellite communications. This will enable the soldier on the ground not only the extended range that the pocket amplifier brings, but the ability to access SATCOM capability that previously could only be gotten for vehicle systems in the mobile environment.

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