Valence Technology and Electric Vehicles International Reach Exclusivity Agreement

Valence Technology Inc. Will Be the Exclusive Battery Supplier to Electric
Vehicles International (EVI) for Their Medium Duty and Walk-In Fully Electric
Trucks
AUSTIN, Texas & STOCKTON, Calif.--(Business Wire)--
Valence Technology, Inc. announced today at the Grand Opening ceremony for EVI`s
new US headquarters and production facility in Stockton, California, that it
reached an exclusive supply agreement with leading electric vehicle manufacturer
EVI.

"We are pleased to have secured a deal with Valence Technology for their
patented Lithium-Iron Magnesium Phosphate battery systems," said Ricky Hanna,
CEO of Electric Vehicles International. "We have introduced today our new
state-of-the-art electric commercial vehicles, the MD-EVI and the WI-EVI, and we
know that being able to offer the best and most reliable battery technology out
there will give us the edge over any competitors."

"The Valence U-Charge energy storage systems offers EVI the flexibility to offer
three distinctive electric trucks from class 4 (15,000 lbs) to class 6 (25,950
lbs). Customers also have the flexibility to select specific operating ranges
from 60 to 115 miles to fulfill their specific service needs," said Robert L.
Kanode, President and CEO of Valence Technology. "We are pleased to offer EVI
the safety, flexibility, reliability and freedom to sell their superior product
in 20 countries with Valence Technology`s extensive patent estate. EVI`s abuse
testing of the U-Charge system has validated the safety, reliability and
continuous delivery of energy throughout an extended life that EVI commercial
customers demand. Therefore, we are pleased to offer EVI and their customers a
5-year warranty on our battery systems."

Since 2005, Valence has shipped nearly 80 megawatt-hours of energy, or the
equivalent of approximately 4,000 electric cars. Valence Technology`s energy
storage solutions can be found in commercial electric vehicles from EVI, Smith
Electric and PVI (in partnership with Renault Trucks), as well as in Brammo
electric motorcycles, Oxygen scooters, Segway personal transporters, Tennant
floor scrubbers and other advanced alternative transportation solutions.

Carl E. Berg is a principal shareholder of both Valence and EVI.

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 iron magnesium 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 EVI - Electric Vehicles International. Electric Vehicles International
(EVI) is a leading manufacturer of electric vehicles for multiple applications
covering a diverse range of transportation options for today`s
environmentally-aware and cost-conscious customers. EVI focuses on providing
highly effective solutions using the newest electric motor and controller
technologies as well as delivering the highest standards of reliability and
efficiency. The portfolio ranges from a two-person light-duty vehicle to
medium-duty, class 6 vehicles. For more information about EVI, visit
www.evi-usa.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 or
whether any batteries are purchased under the supply agreement, 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 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.

PR Contact:
Automotive PR of America
Axel E. Catton, 201-845-5418
or
IR Contact:
Pierpont Investor Relations
A. Pierre Dubois, 512-527-2921

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