Valence Technology Announces Expansion of its Lithium-ion Battery Line

Complement the new U-Charge RT and XP Power Systems, Valence Technology will offer battery management systems (U-BMS) and a battery discharge indicator (U-BDI). The U-BMS can be used with 12-volt to 450-volt applications to provide smart battery-to-battery balancing, battery system monitoring, direct control of external disconnects and remote battery system control. The U-BDI is a companion device that displays the state-of-charge for U-Charge RT Power System models.

Production of two models of the U-Charge RT Power System began last year and Valence Technology began delivering these systems to Graham-Field Health Products in October 2005. Production is anticipated to begin on other U-Charge RT and XP Power System models over the next six months.

About Valence Technology, Inc.

Valence Technology develops and markets intelligent battery systems based on its Saphion(R) technology, the industry's first commercially available, safe, large-format Lithium-ion rechargeable battery technology. Valence Technology holds an extensive, worldwide portfolio of issued and pending patents relating to its Saphion technology and lithium-ion rechargeable batteries. The company has facilities in Austin, Texas, Las Vegas, Nevada, and Suzhou and Shanghai, China. Valence Technology is traded on the Nasdaq Capital Market under the symbol VLNC and can be found on the Internet at www.valence.com.