Valence Technology Announces It is Supplier of Lithium Phosphate Battery Packs for...

Valence Technology Announces It is Supplier of Lithium Phosphate Battery Packs for the OEMtek 100 MPG Toyota Prius Plug-In Hybrid Add-On

OEMtek Begins Shipments of Valence Battery-Equipped Add-On for
Prius Conversions to Plug-In Hybrid Electric Vehicle
AUSTIN, Texas--(Business Wire)--
Valence Technology, Inc. (NASDAQ: VLNC) today announced by the end
of February, it plans to ship an additional 600 custom modules of
Valence's safe, Lithium Phosphate energy storage systems for
installation and conversion of Toyota Prius hybrid vehicles into
Plug-In Hybrid Electric Vehicles. Valence previously supplied OEMtek
with 300 modules which are now being shipped to customers.

OEMtek's plug-in hybrid will average 90 miles per gallon at
freeway speeds of 60 miles per hour for an average distance of 47
miles on a single charge. For urban driving the vehicle and will
average more than 150 mpg at speeds under 35 mph for 30 miles on a
single charge.

"Valence has been a supportive partner in the development and
production of our custom modules, providing OEMtek the quality and
consistency we mandate from a battery cell manufacturer. We spoke with
a number of other battery companies and Valence was responsive and
capable to meet our delivery needs," said Cindi Choi, vice president
of business development for OEMtek. "We are also very excited about
Valence's promising future technology developments that could allow
OEMtek to deliver a system to our customers that has increased energy
capacity and reduced size and weight."

"We are extremely pleased to see OEMtek starting to perform
conversions using the custom modules we have worked together on for
the past year," said Robert L. Kanode, president and CEO of Valence
Technology. "OEMtek is one of more than 100 companies we have been
working with for an extended period of time to increase Valence
visibility as a major force in the battery industry."

The OEMtek battery system, called BREEZ(TM) (Battery Range
Extender EZ) fits over the tire in the trunk of the Prius, but does
not use any of the trunk space. The OEMtek BREEZ system is comprised
of safe, Lithium Phosphate cells, providing a capacity of 277 volts
and 34 amp hours, and a weight of about 209 pounds.

Initially the OEMtek product will only be available in California,
where more than 500,000 Toyota Prius vehicles have been sold. OEMtek
plans to install about 40 BREEZ systems in Toyota Prius's starting in
March and will ramp up to 100 monthly conversions by the end of 2008.
OEMtek plans to start Ford Escape Plug-In Hybrid conversions in late
2008.

About Valence Technology, Inc.

Valence Technology developed and markets the industry's first
commercially available, safe, large-format family of lithium phosphate
rechargeable batteries. Valence Technology holds an extensive,
worldwide portfolio of issued and pending patents relating to its
lithium phosphate rechargeable batteries, the only intrinsically safe
lithium rechargeable battery. The company has its headquarters in
Austin, Texas, and facilities in Las Vegas, Nevada, Mallusk, Northern
Ireland and Suzhou, China. Valence is traded on the Nasdaq Capital
Markets under the ticker symbol VLNC and can be found on the internet
at www.valence.com.

About OEMtek

OEMtek is a Silicon Valley-based venture that designs, integrates
and distributes components, advance electronics and systems for
electric and plug-in hybrid vehicles. OEMtek is located in Milpitas,
California. www.oemtek.com.

Safe Harbor Statement

This press release contains forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995,
including our statements that we are positioned to realize better
execution, improve gross margins, continue to reduce production costs
and expenses, realize a strong year in both customer orders and
revenue and our financial guidance. Actual results may vary
substantially from these forward-looking statements as a result of a
variety of factors. Among the important factors that could cause
actual results to differ are: the impact of our limited financial
resources on our ability to execute on our business plan and the need
to raise additional debt or equity financing to execute on that plan;
our uninterrupted history of quarterly losses; our ability to service
our debt, which is substantial in relationship to our assets and
equity values; the pledge of all of our assets as security for our
existing indebtedness; the rate of customer acceptance and sales of
our products; the continuance of our relationship with a few existing
customers, which account for a substantial portion of our current and
expected sales in the upcoming year; the level and pace of expansion
of our manufacturing capabilities; the level of direct costs and our
ability to grow revenues to a level necessary to achieve profitable
operating margins in order to achieve break-even cash flow; the level
of our selling, general and administrative costs; any impairment in
the carrying value of our intangible or other assets; our execution on
our business strategy of moving our operations to Asia and our ability
to achieve our intended strategic and operating goals; the effects of
competition; and general economic conditions. These and other 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, 2007, 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.

for Valence Technology, Inc.
Pierpont Communications, Inc.
Helen Rodriguez, +1 512 448-4950
Media Relations
or
Pierpont Investor Relations
A. Pierre Dubois, +1 512 527-2921
Director of Investor Relations
or
UK Company Contact:
Valence Technology Inc.
Mark Donaghy, +44 28 9084 5401
Global Marketing Manager

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