Valence Technology and FengFan Group Establish Joint Venture in China to Manufacture Valence's Saphion Lithium-ion Batteries

    AUSTIN, Texas--Nov. 12, 2002--Valence Technology Inc. , a leader in the development and commercialization of Saphion(tm) technology and Lithium-ion polymer rechargeable batteries, and FengFan Group Ltd., the manufacturer of the largest capacity rechargeable batteries in China, today announced that they have entered into a joint venture agreement.
    Under the agreement, the companies will establish a joint venture company in China to manufacture Valence's Saphion(tm) Lithium-ion batteries for all applications globally.
    "One of our goals has long been to provide our customers with access to advanced battery technology, such as Lithium-ion, to meet current and emerging market needs. Valence's Saphion technology is the perfect choice for us to achieve this objective," stated Chen Ming Li, chairman and president of the FengFan Group Ltd. "Its high performance, low cost, safety and flexibility characteristics, make Saphion the strongest contender for large format lithium-ion applications."
    "As part of our ongoing strategy, we have been aggressively pursuing manufacturing partnerships in low-cost regions such as China," stated Stephan Godevais, chairman and chief executive officer of Valence Technology Inc. "When we initiated our discussions with FengFan, our priority was to find a company with a strong management team and extensive manufacturing experience. As one of the top manufacturers of large format batteries in China, FengFan quickly emerged as our number one choice."

    About Valence Technology Inc.

    Valence is a leader in the development and commercialization of Saphion(tm) technology and Lithium-ion polymer rechargeable batteries. Valence has more than 807 issued and pending patents worldwide, including 262 issued in the U.S. The company has facilities in Austin, Texas, Henderson, Nev., and Mallusk, Northern Ireland. Valence is traded on the Nasdaq SmallCap Market under the symbol VLNC and can be found on the Internet at www.valence.com.

    About FengFan Co. Ltd.

    FengFan is the leading manufacturer of high-performance, maintenance-free sealed batteries for cars, motorcycles and industrial applications in China with a 44-year history of product development and sales. FengFan's "Sail" line of batteries is acknowledged as the leading product in its category by the Chinese State Bureau of Commerce and Technology and is exported to over 20 countries worldwide. It is the leading OEM vendor to major automobile manufacturers including Shanghai Volkswagen, FAW-VW, Dongfeng Citroen Automobile, Beijing Cherokee, Nanjing Iveco, Steyr of China Heavy Duty Trucks and Tianjin Charade. The company is headquartered in Baoding, China.

    Forward-Looking Statement

    The information contained herein includes "forward-looking statements." The company cautions readers not to put undue reliance on forward-looking statements. Such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and actual results may differ materially from those described herein, for the reasons, among others, discussed in our reports filed with the Securities and Exchange Commission.