Valence Technology Lithium Phosphate Batteries Pass First Phase of Ford Test Program in Germany

Smith Electric Delivery Vehicles Studied for European Urban Market

AUSTIN, Texas--()--Valence Technology, Inc. (NASDAQ: VLNC), a leading U.S. based global manufacturer of advanced energy storage solutions, today announced its lithium phosphate batteries earned favorable first phase reviews during a large electric vehicle assessment program being conducted by Ford-Werke GmbH in Cologne, Germany.

As part of the colognE-mobile study, Smith Electric Vehicles in the UK manufactured and delivered 10 Smith Edison™ electric vehicles to Ford in February 2010. The study has been underway for 15 months and Ford recently announced that the vehicles are meeting reliability, practicality, and ease-of-use goals.

The all-electric Smith Edison uses the Ford Transit chassis, has a 1,000-kilogram (2,200 lbs) payload and utilizes Valence’s patented lithium phosphate batteries. The Edison vehicles utilized in this program have a range of up to 165 kilometers (102 miles) with a top speed of 80 km/hour (50mph), powered by a 90kW (122hp) 3-phase AC induction motor.

“Several hundred Smith all-electric commercial vehicles are in operation throughout Europe. The Edison project is further evidence of the ability of Smith and Valence to develop reliable alternative power delivery fleets to meet market needs,” stated Geoff Allison, managing director Europe, Smith Electric Vehicles.

“Valence is pleased to partner with Smith Electric and Ford on the Edison, a zero-emission vehicle that is perfectly suited for light deliveries in European urban areas. We are gratified that the test results affirm the suitability and reliability of our technology and are proud to continue to be at the forefront in bringing innovation to the commercial vehicle market,” said Valence Chief Technology Officer K.C. Lim, Ph.D.

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 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.

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 a zero-emission vehicle that is perfectly suited for light deliveries in European urban areas, suitability and reliability of our technology, and continuing to be at the forefront in bringing new innovation to the commercial vehicle market. Our actual results could vary substantially from these forward-looking statements as a result of a variety of factors including: the impact of our limited financial resources on our ability to execute on our business plan, commercially exploit our technology, respond to unanticipated developments, and compete effectively in the marketplace. These and other 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 and 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.

Contacts

Valence Technology, Inc.
IR Contact:
Bob Gray, 512-527-2921
investor@valence.com
or
PR Contact:
The Blueshirt Group
Jeff Fox, 415-828-8298
jeff@blueshirtgroup.com

Contacts

Valence Technology, Inc.
IR Contact:
Bob Gray, 512-527-2921
investor@valence.com
or
PR Contact:
The Blueshirt Group
Jeff Fox, 415-828-8298
jeff@blueshirtgroup.com