Valence Rides into Batteries 2008 with Positive Momentum in the European Motive Market

Business Wire, Oct 8, 2008

Building on increased demand for its lithium phosphate energy storage solutions, this week's conference also marks the launch of the company's new web site

AUSTIN, Texas -- This week at the 10th Annual Batteries 2008 conference in Nice, France, Valence Technology, Inc. (NASDAQ: VLNC), will showcase its safe lithium phosphate energy storage solutions as the company continues to see growth within Europe's expanding motive market. As a silver sponsor of Batteries 2008, members of the Valence team will be on hand including a presentation by Yazid Saidi, Director of Material Research, about the next generation of phosphate-based materials and the role they will play in hybrid electric vehicles (HEVs), plug-in electric vehicles (PHEVs) and other applications.

Valence's leadership at Batteries 2008 follows a recent announcement that it has expanded its relationship with Oxygen SpA, a leading Italian electric scooter manufacturer, to supply lithium phosphate battery systems to power Oxygen's all-electric Cargoscooter.

"Batteries 2008 is coming at a very exciting time for Valence as we are seeing increased interest and activity within the European motive and commercial vehicle market for our innovative lithium phosphate energy storage solutions," said Alastair Johnston, Vice President of Worldwide Sales & Marketing. "Recent announcements with companies such as Oxygen demonstrate not only the broad applications for our technology, but also that more and more companies understand the inherent advantages of the lithium phosphate chemistry over traditional battery technologies."

Valence's lithium phosphate energy storage solutions easily out-perform lead-acid batteries with the best energy-to-weight ratios and is inherently safe with virtually no emissions. When compared to traditional battery technologies, Valence's energy storage solutions offer the best combination of performance, safety, cost and reliability.

Batteries 2008 will also mark another significant milestone for Valence as the company launches its new brand identity. In addition to new logo design for the company, Valence recently unveiled a redesigned and enhanced web site. The site is designed for customers and partners to have easy access to Valence's products, to serve as a resource on lithium phosphate and to highlight the company's growing market opportunities. The new web site can be viewed at www.valence.com.

About Valence Technology, Inc.

Valence Technology is an international leader in the development of lithium phosphate energy storage solutions. The company has redefined lithium battery technology and performance by marketing the industry's first safe, reliable and rechargeable lithium phosphate battery. Founded in 1989, Valence today offers a proven technology and manufacturing infrastructure that delivers ISO-certified products and processes that are protected by an extensive global patent portfolio. Headquartered in Austin, Texas, Valence has facilities in Nevada, China and Northern Ireland. Valence 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. Actual results may vary substantially from these forward-looking statements as a result of a variety of factors. The risk factors that could affect actual results are discussed in our periodic reports filed with the Securities and Exchange Commission, including our Report on Form 10-K for the year ended March 31, 2008, 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.