Valence Offers Dell Users a Battery Alternative with the Safety of Phosphates; Saphion® Technology Based N-Charge™ Power System Offers Up to 10 hours of Battery Life

Business Wire, August 24, 2006

AUSTIN, Texas -- Dell laptop users who are waiting for replacement batteries can turn to the Valence N-Charge(TM) power system to provide their power. The N-Charge Power System offers users up to 10 hours of battery and the safety provided by Valence's (NASDAQ:VLNC) patented Saphion(R) technology.

Unlike traditional cobalt oxide Lithiom-ion batteries, Valence batteries are made using a patented phosphate based cathode material. Phosphates are stable in overcharge or short circuit conditions and have the ability to withstand high temperatures without major incident. Using Saphion technology means Valence batteries in normal use and conditions are unlikely to be subject to "thermal runaway" that can cause fires. As a result, Saphion technology possesses safety characteristics that are fundamentally superior to those of cobalt oxide Lithium-ion batteries.

Valence's N-Charge power system is a universal, external battery that provides up to 10 hours of continuous runtime for notebook or tablet PCs such as those from Dell. Valence offers two models of batteries. The VNC-65 offers up to five hours of runtime and the VNC-130 offers up to 10 hours of runtime. Either of these batteries could be used as the primary power source for the laptop instead of the internal battery. More importantly, the N-Charge Power System provides a safe, long lasting adjunct to traditional laptop batteries offering easy-to-use, anytime, anywhere power.

Valence's N-Charge power system is regularly deployed for a wide variety of uses in educational settings, including K-12 schools, and healthcare settings, including hospitals, where all day run time of laptops is required.

N-Charge Power Systems can be ordered directly from Valence (www.valence.com) or 888-VALENCE. The N-Charge Power System is also available through a variety of computer suppliers including Dell, CDW, InfoLogix, Insight and PC Connection.

About Valence Technology, Inc.

Valence Technology develops and markets intelligent battery systems based on its Saphion(R) technology, the industry's first commercially available, safe, large-format Lithium-ion rechargeable battery technology. Valence Technology 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, Las Vegas, Nevada, and Suzhou, China. Valence Technology is traded on the Nasdaq Capital Market under the symbol VLNC and can be found on the Internet at www.valence.com.

Forward-Looking Statements

Some information included in this press release contains forward-looking statements, within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Act of 1934. Such statements include information relating to business activities and project development. These statements can sometimes be identified by the use of forward-looking words such as "may," "will," "anticipate," "estimate," "except," "scheduled," or "intend" and similar expressions. Such forward-looking information involves important risks and uncertainties that could significantly affect anticipated results in the future and, accordingly, such results may differ materially from those expressed in any forward-looking statements made by or on behalf of Valence Technology. These and other risk factors that could affect actual results are discussed in Valence's periodic reports filed with the Securities and Exchange Commission, including its Report on Form 10-Q for the quarter ended September 30, 2005, and the reader is directed to these statements for a further discussion of important factors that could cause actual results to differ materially from those in the forward-looking statements. The forward-looking statements included in this press release are made only as of the date of this release. Valence Technology does not undertake any obligation to update or supplement any forward-looking statements to reflect subsequent events or circumstances and cannot assure that projected results or events will be achieved.