VLNC Valence Technology, Inc. (MM)

Valence Technology, Inc. (Nasdaq:VLNC), a leading U.S.-based global manufacturer of advanced energy storage solutions for commercial applications today affirmed the inherent safety of its lithium phosphate chemistry for automotive electric batteries, as demonstrated in cell penetration and cell crush testing.

"Since 2004, Valence Technology has utilized a patented lithium phosphate chemistry in our batteries. This chemistry offers many advantages, including an enhanced safety factor over other lithium chemistries such as lithium metal, lithium metal oxides and lithium mixed metal oxide batteries. While there are dozens of different chemistries under the rechargeable 'lithium ion' umbrella, we firmly believe that our lithium phosphate chemistry offers one of the safest solutions currently available," said Robert L. Kanode, president and chief executive officer of Valence Technology.

Valence is a leading supplier of lithium batteries for the commercial electric fleet market in North America and Europe, and its energy storage solutions are deployed in a host of innovative applications including industrial, marine and health care equipment.

Batteries by their nature are designed to store high energy and thereby can present a risk if that energy is released. Valence employs safety circuitry external of the cell and internal cell safety features to reduce the risk of release of the energy in some situations. However, due to the inherent nature of some cathode materials used in batteries, some risk may be presented which can not be controlled through the use of safety circuitry and internal cell features. The Underwriters Laboratories (UL) crush test and industry's Japan Storage Battery Association (JSBA) nail penetration test are designed to simulate such additional cell risk factors. Not only does Valence provide safety circuitry external of the cell and internal cell safety features, its cells made with Valence's proprietary cathode materials also pass these crush and nail penetration tests.

More information about Valence's battery safety and third party tests can be found on the "Safety" section of Valence's website www.valence.com.

About Valence Technology, Inc.

Valence Technology is a global leader in the development and manufacture of safe, long-life lithium iron magnesium phosphate advanced energy storage solutions and integrated command and control logic. Headquartered in Austin, Texas, Valence enables and powers some of the world's most innovative and environmentally friendly applications, ranging from commercial electric vehicles to industrial and marine equipment. Valence Technology today offers a proven technology and manufacturing infrastructure that delivers ISO-certified products and processes that are protected by an extensive global patent portfolio. In addition to the corporate headquarters in Texas, Valence Technology has its Research & Development Center in Nevada, its Europe/Asia Pacific Sales office in Northern Ireland, manufacturing facilities in China, and global fulfillment centers in North America and Europe. Valence Technology is traded on the NASDAQ Capital Market under the ticker symbol "VLNC." For more information, visit www.valence.com.

The Valence Technology, Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=10210

Safe Harbor Statement

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including, among other things, our statements regarding the comparative safety of lithium phosphate chemistry, lithium metal, lithium metal oxide and lithium mixed metal oxide solutions. Risk factors that could affect our actual results are discussed in our periodic reports filed with the Securities and Exchange Commission, including our Annual Report on Form 10-K for the fiscal year ended March 31 and Quarterly Reports on Form 10-Q and other documents filed with the Securities Exchange Commission. The reader is directed to these statements for a further discussion of important factors that could cause our actual results to differ materially from those in our forward-looking statements. We disclaim any intent or obligation to update these forward-looking statements.

CONTACT: IR Contact:
         Bob Gray
         Valence Technology, Inc.
         512.527.2921
         investor@valence.com
         
         PR Contact:
         Jeff Fox
         The Blueshirt Group
         415.828.8298
         jeff@blueshirtgroup.com