  Using the low-resolution mode of the Space Telescope Imaging Spectrograph
(STIS) aboard the \emph{Hubble Space Telescope} (HST), we have obtained
spatially resolved spectra of 20 ultracool dwarfs. 18 of them belong to 9 known
very low-mass binary systems with angular separations in the range 0.37-0.098
arcseconds. We have derived spectral types in the range dM7.5 to dL6 from the
PC3 index, and by comparing our STIS spectra with ground-based spectra of
similar spectral resolution from Mart{\'\i}n et al. (1999). We have searched
for H$_\alpha$ emission in each object but it was clearly detected in only 2 of
them. We find that the distribution of H$_\alpha$ emission in our sample is
statistically different from that of single field dwarfs, suggesting an
intriguing anticorrelation between chromospheric activity and binarity for
M7--M9.5 dwarfs. We provide measuments of the strength of the main photospheric
features and the PC3 index, and we derive calibrations of spectral subclasses
versus F814W and K-band absolute magnitudes for a subset of 10 dwarfs in 5
binaries that have known trigonometric parallaxes.
