Apple has released details on how it plans to deal with battery-related issues on the iPad. For a $99 service fee, Apple will replace the entire iPad unit, should your device qualify for a battery replacement.
iPads whose battery has been diminished to a point of unacceptable charge capacity are eligible for the $99 service replacement iPad unit. Predictably though, Apple has a laundry list of exceptions for this replacement program and users should take note of instances that will not be covered:
the product is not operating correctly as a result of a component failure
Of course, since this unit will be completely new to you, users should be sure to have a backup of their iPads made on iTunes before taking their devices into a local Apple Store, Apple Authorized Service Provider, or sending their iPads to Apple Technical Support. Apple expects mail-in replacements to be fulfilled within a week.