Valence Technology Presents at All Electric Combat Vehicle Conference

AUSTIN, Texas--June 9, 2005--Valence Technology, Inc. , developers of Saphion(R) technology, the first commercially available safe, phosphate-based lithium-ion battery, announced its participation on June 15, 2005, at the 6th Annual All Electric Combat Vehicle (AECV) Conference in Bath, England.

Military equipment is subjected to rigorous climates and geographies, making superior safety, performance and reliability essential characteristics for batteries used in these applications.

"The cathode material used in a battery has a profound effect on its safety. Most oxide-based lithium-ion batteries are susceptible to thermal runaway and internal safety circuitry will not necessarily prevent these events," said Dean Bogues, vice president of marketing and sales for Valence Technology, Inc. "That's why Saphion lithium-ion batteries are constructed using a safe, phosphate-based cathode material. In addition to their safety characteristics, Valence batteries offer high rate capability and exceptional cycle life, which are critical in electric vehicle applications, such as those used by the military."

For more information on the AECV Conference, visit their web site at: www.aecv2005.org.uk.

About Valence Technology, Inc.

Valence Technology is a leader in the development and commercialization of Saphion(R) technology, the only safe large format Lithium-ion rechargeable battery technology. Valence 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, Henderson, Nevada and Suzhou and Shanghai, China. Valence is traded on the Nasdaq SmallCap Market under the symbol VLNC and can be found on the Internet at www.valence.com.