Valence Technology Batteries to be used in Clean-Tech's All-Terrain Vehicles

Business Wire, June 13, 2005

AUSTIN, Texas -- Clean-Tech has chosen for its all-terrain vehicles (ATVs) U-Charge Power Systems from Valence Technology, Inc. (Nasdaq:VLNC), developer of Saphion(R) technology, the basis of the industry's first commercially available safe, phosphate-based lithium-ion batteries.

"We looked at other battery alternatives to power the electric/fuel-cell hybrid ATVs we're developing, but selected Valence's Saphion systems because they are the most technologically advanced batteries available today," said Seth Seaberg, chief executive officer of Clean-Tech. "The U-Charge Power Systems, which come in a convenient 12V modular design, can be easily integrated into our 48V and 72V platforms. And, they offer fast charge capability, great energy density, and require virtually no maintenance. These are critical characteristics in allowing us to develop the best automotive systems in the least amount of time."

Clean-Tech has ordered 150 units of the U24 and U27 U-Charge models from Valence and will deliver an initial order of ATVs this month to Corolla Outback Adventures, which provides tours on the North Carolina coast. "By the end of the 2005 tourist season, thousands of ordinary people will have had the opportunity to drive the first practically deployed electric/fuel-cell hybrid vehicles in the U.S., and we're pleased that Valence is a part of this project," said Seaberg.

U-Charge Power Systems are based on Valence's Saphion technology, which uses a phosphate-based cathode material rather than metal-oxides that are found in other lithium-ion batteries. Saphion batteries are intrinsically safe and environmentally friendly. And, when compared to lead-acid batteries, they offer superior run-time and deliver greater energy density, reliability and longer life.

About Clean-Tech

Clean-Tech, based in Los Angeles, Calif. is a small volume automotive manufacturer, specializing in advanced hydrogen fuel cell, battery and hybrid-powered ultra light duty vehicles with current real-world applications. Clean-Tech also provides contract-based systems integration services for public, private and utility fleets and R&D companies. For more information, visit www.clean-tech.com.

About Valence Technology, Inc.

Valence Technology is a leader in the development and commercialization of Saphion(R) technology, the industry's first commercially available, safe, large-format Lithium-ion rechargeable battery technology. Valence holds an extensive, worldwide portfolio of issued and pending patents relating to its Saphion technology and Lithium-ion rechargeable batteries. The company has facilities in Austin, Texas, Henderson, Nevada and Suzhou and Shanghai, China. Valence is traded on the Nasdaq SmallCap Market under the symbol VLNC and can be found on the Internet at www.valence.com.

Safe Harbor Statement

The information contained herein includes "forward-looking statements." Valence Technology, Inc. cautions readers not to put undue reliance on forward-looking statements. These forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and actual results may differ materially from those described herein, for the reasons, among others, discussed in our reports filed with the Securities and Exchange Commission.