George, There are two types of Ultra-Orthodox in Israel. There are the ones that were living in Gaza and the West Bank. These ultra-orthodox serve in the army. There are also the ones that learn all day in Meah Shearim and Bnei Brak and generally don't give the Palestinians problems. These ultra-orthodox don't serve in the army. I think you're mixing the two groups up with each other.
One student killed, three wounded at Arizona campus during fight (a)
from the article: Draft deferrals for yeshiva students surpass 50,000 mark in 2006