Valence Technology & Tennant Company Sign Supply Agreement for Lithium Phosphate Energy Storage Solutions

Valence Technology`s U-Charge XP Line to Power New Line of Compact Floor
Scrubbers

AUSTIN, Texas & MINNEAPOLIS--(Business Wire)--
Valence Technology, Inc. (NASDAQ: VLNC), an international developer of safe
lithium phosphate energy storage solutions, today announced a two-year supply
agreement with Tennant Company (NYSE: TNC), a leading U.S.-based manufacturer of
commercial and industrial floor maintenance equipment. Building on a
collaborative development process, Valence Technology will provide lithium
phosphate batteries for installation in Tennant`s newest compact floor scrubber.
This compact, low-profile floor scrubber offers an alternative for traditional
lead-acid battery and plug-in powered models. National testing of the new
lithium phosphate powered scrubber will commence in November 2009 with full
production scheduled for early 2010.

Under terms of the supply agreement, the new Tennant compact floor scrubbers
will be powered by the Valence Technology U-Charge XP line of energy storage
solutions, which are complemented by Valence`s custom Battery Management System
(BMS) to monitor battery health and performance.

"Growing acceptance of our safe lithium phosphate energy storage solutions
across industrial applications reflects the performance, reliability,
flexibility and immediate availability of our family of U-Charge XP systems,"
said Robert L. Kanode, president and CEO of Valence Technology. "We are pleased
to announce this supply agreement as it reflects the hard work and collaboration
of both the Tennant and Valence Technology teams. This partnership with Tennant
epitomizes our approach to work with our customers from initial introduction to
final adoption and educate customers on the benefits of our technology over
traditional lead acid batteries."

"In the past, larger and heavier power solutions have limited the ability to
develop smaller scrubber solutions capable of replacing the `mop and bucket`
method of cleaning," said Steve Ulvi, VP for Global Sourcing of Tennant Company.
"Valence Technology has removed this barrier by creating a smaller, lighter
lithium phosphate battery. As a result, Tennant has been able to leverage
Valence`s leading-edge technology to build a smaller, more versatile floor
scrubber. We are excited to collaborate with a company committed to creating
innovative solutions to solve real-world customer challenges."

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. 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 the United States Valence Technology has facilities in Austin,
Nevada, China and Northern Ireland. Valence Technology is traded on the NASDAQ
Capital Market under the ticker symbol VLNC. For more information, visit
www.valence.com.

About Tennant Company

Minneapolis-based Tennant Company (NYSE: TNC) is a world leader in designing,
manufacturing and marketing solutions that help create a cleaner, safer world.
Its products include equipment for maintaining surfaces in industrial,
commercial and outdoor environments; and specialty surface coatings for
protecting, repairing and upgrading concrete floors. Tennant's global field
service network is the most extensive in the industry. Tennant has manufacturing
operations in Minneapolis, MN.; Holland, MI.; Uden, The Netherlands; the United
Kingdom; São Paulo, Brazil; and Shanghai, China; and sells products directly in
15 countries and through distributors in more than 80 countries. For more
information, visit www.tennantco.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 the quantity of batteries purchased under the supply
agreement. 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, 2009, 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.

Valence Technology IR Contact:
Pierpont Investor Relations
A. Pierre Dubois, 512-527-2921
investor@valence.com
or
Valence Technology PR Contact:
Allyn Media
Kyle Tarrance, 214-871-7723
ktarrance@allynmedia.com
or
Tennant Company PR Contact
Kathryn Lovik, 763-540-1212
Director of Communications
kathryn.lovik@tennantco.com

Copyright Business Wire 2009