Valence Technology, Wrightbus Sign Multi-Year Battery Supply Agreement

AUSTIN, Texas--(BUSINESS WIRE)--Valence Technology, Inc. (NASDAQ: VLNC), a leading U.S.-based developer and manufacturer of advanced energy storage solutions, today announced the signing of a multi-year supply agreement with Wrightbus, the United Kingdom's leading independent supplier of hybrid buses for public transportation systems. Building on a relationship between the parties since 2005, this agreement establishes Valence Technology as the battery supplier of choice for Wrightbus’ future hybrid product range.

“Valence’s selection as a key supplier to Wrightbus speaks to our product’s performance as well as market acceptance of our advanced energy solutions. Fleet manufacturers, such as Wrightbus, are choosing Valence Technology to help meet their evolving customer needs and requirements for lower emission vehicles”

With multiple Valence-powered Wrightbus hybrid buses already on roads in the U.K. & Ireland, this new agreement secures the relationship between the two companies through 2016. Valence expects this initial contract to generate between $19 million to $24 million in battery sales over the six-year term of the agreement, subject to market demand.

"Valence’s selection as a key supplier to Wrightbus speaks to our product’s performance as well as market acceptance of our advanced energy solutions. Fleet manufacturers, such as Wrightbus, are choosing Valence Technology to help meet their evolving customer needs and requirements for lower emission vehicles,” said Robert L. Kanode, president and CEO, Valence Technology.

"The teams from Wrightbus and Valence Technology have been working together since 2005. Since that time, it has become clear that Valence’s technology has proven to be an excellent complement to our buses. The relationship has only strengthened as we develop our future hybrid product range throughout the U.K. and Europe," said Wright Group Product Development Director, Damian McGarry.

The Valence product features a 600-Volt Valence Technology lithium phosphate battery system that powers the electric drivetrain. The advanced battery system provides a high power solution that can be recharged through an on-board diesel generator or regenerative braking while in transit.

The battery system, in conjunction with the efficiencies of the Siemens ELFA drive, enables these buses to demonstrate a number of key features required by the next generation of hybrid bus. These benefits include greater than a 35% reduction in emissions, as well as more than a 35% increase in fuel efficiency versus even the most efficient diesel powered buses.

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. Actual results may vary substantially from these forward-looking statements as a result of a variety of factors, including how many of its batteries are purchased under the supply agreement; Valence’s ability to remain internationally competitive in terms of price, quality, delivery and service with respect to its battery products; Valence's ability to scale its manufacturing process in order to deliver on any purchase orders; and Valence’s ability to gain, maintain and expand further commercial acceptance of its products and technologies. The risk factors that could affect 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 year ended March 31, 2010, and our Quarterly Reports on Form 10-Q, 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.