Valence Expands Relationship with Oxygen to Supply Lithium Phosphate Energy Storage Solutions for its Cargoscooter

AUSTIN, Texas--(BUSINESS WIRE)--Valence Technology, Inc. (NASDAQ: VLNC), an international developer of safe lithium phosphate energy storage solutions, announced today that it has expanded its relationship with Oxygen SpA, a company based in Padua, Italy, and a leader in the development, production and distribution of light electric vehicles. As part of a recently signed $2 million purchase order, Valence will supply lithium phosphate battery systems over the next four months to power Oxygen’s innovative, all-electric Cargoscooter. Shipments to Oxygen have already begun.

"With over 500 Cargoscooters already on the road utilizing our energy storage technology, we are delighted to build on this successful relationship with Oxygen,” said Alastair Johnson, Vice President, Worldwide Sales and Marketing for Valence. “This purchase order signals Oxygen’s commitment to incorporate Valence solutions across their product line.”

Oxygen’s Cargoscooters are designed specifically for the delivery market and for inner-city use. By combining Valence’s lithium phosphate battery technology with Oxygen’s lightweight and functional design, the Cargoscooter reduces energy costs and maintenance needs, increases efficiency and driver’s safety, and eliminates air and noise pollution. Significantly less costly to operate and maintain than equivalent gas powered vehicles, the Cargoscooter can run up to 120 kilometers (74 miles) on a single charge and reach a top speed of 45 km/hour while carrying cargo of up to 90 kg (200 lbs).

“We have been so pleased with the delivery and performance of Valence’s energy storage solutions over the last three years, we released this purchase order as a vital aspect for the continued success and growth of our Cargoscooter,” said Antonio Croppo, CEO of Oxygen. “Now being used across Europe by numerous customers including postal delivery, food and grocery delivery, courier services and law enforcement, our Cargoscooter has built a reputation as a high-performance, clean-running and cost-effective transportation solution.”

Valence’s lithium phosphate energy storage solution easily out-performs lead-acid and nickel-zinc batteries with 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.

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

About Oxygen S.p.A.

Oxygen specializes in the development, manufacturing, sales and distribution of environmentally friendly, technologically advanced light electric vehicles (LEV). Its advanced electric transporters compete directly with gas equivalent products, offering equal to superior overall performance, while reducing costs and eliminating vehicle fuel consumption and emissions. Oxygen’s commercial vehicles address the needs of postal and parcel delivery companies, police organizations, food delivery chains, and traditional and e-commerce retailers. The company’s corporate office is based in Padua, Italy. Oxygen vehicles are assembled and tested at its partner’s Peugeot Motorcycles (PMTC, PSA Group) plants in Belfort, France. For more information, visit www.oxygenworld.it.

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.