Valence Technology Ready To Power Mercedes Taxi Fleet

The Plug-in Electric Mercedes eVito Taxi Prototype Utilizes Valence Technology
to Carry Six People 120 Miles on a Single Charge and a Fleet Can Be on the Road
in Time for the 2012 London Olympic Games
AUSTIN, Texas--(Business Wire)--
Valence Technology today announced it is pleased to provide the safe lithium
phosphate energy storage systems for the new plug-in electric Mercedes eVito
Taxi. This prototype is a tailpipe-free cab designed to fulfill the zero
pollution vision of London mayor Boris Johnson. Road testing will begin
immediately to customize the vehicle for specific London taxi driving
requirements. For taxi use, the top speed of 75 miles per hour may be reduced
and regenerative braking optimized, increasing the projected range beyond 120
miles.

A consortium, involving Mercedes-Benz UK and Zytek Automotive Technology has
utilized Valence`s dynamic energy system to develop a tailpipe-free taxi. The
goal of the consortium is to deliver a pollution-free fleet of taxis in time for
the 2012 London Olympic Games.

"This is a real game-changer for fleet vehicles," said Robert L. Kanode,
President & CEO, Valence Technology. "Valence has been transporting Londoners
for over 4 years in double deck hybrid buses. The eVito Taxi is a logical next
step for the city, and Valence is ready to immediately fulfill Mercedes' high
volume energy storage needs with our proven, safe lithium phosphate technology.
We are confident the eVito test will demonstrate the same outstanding
performance we have consistently delivered in Valence powered electric vehicle
fleets on the road today."

About the Mercedes eVito Taxi.

The Mercedes eVito Taxi features a 35kWh Valence Technology lithium iron
magnesium phosphate intelligent battery system and a 70kW Zytek electric drive
train. The conversion from the Mercedes Vito IC to a zero emissions EV has left
the internal space of the taxi unaffected leaving plenty of luggage and
passenger space. The project partners converted the Mercedes Vito to a fully
electric taxi (the eVito) to fully comply with the demanding requirements of the
London Carriage Office to be classified as a London Taxi.

About Valence Technology, Inc.

Valence Technology is an international leader in the development of safe,
long-life lithium iron magnesium phosphate energy storage solutions and provides
the enabling technology behind some of the world`s most innovative and
environmentally friendly applications. 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 Technology is strategically
aligned by five business segments: Motive, Marine, Stationary, Industrial and
Military. 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. 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.

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IR Contact:
Pierpont Investor Relations
A. Pierre Dubois, 512-527-2921
investor@valence.com
or
PR Contact:
Allyn Media
Kyle Tarrance, 214-871-7723
ktarrance@allynmedia.com

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