Valence Receives New Order for K-Charge System from EVI

AUSTIN, Texas--Jan. 2, 20047, 2004--Valence Technology Inc. , a leader in the development and commercialization of Saphion(R) technology, the only safe large format Lithium-ion rechargeable battery technology, today announced that following the evaluation of K-Charge(TM) system prototypes, Electric Vehicles International (EVI), a leading manufacturer of electric delivery trucks and shuttle buses, has purchased additional K-Charge systems for use in its electric delivery vehicles.

"EVI is breaking new ground in the electric vehicle market, and working with the team over the past several months has been a rewarding experience," stated Stephan Godevais, chairman and CEO of Valence. "We were able to demonstrate to EVI the safety and performance advantages of our Saphion technology and are very excited to take this next step."

"Our tests of the K-Charge prototypes were a success and the product met our expectations," said B. Samra, president of EVI. "We are eager to equip more of our delivery trucks with the K-Charge system, a product that possesses such significant advantages in terms of performance, safety and maintenance costs."

About Valence Technology Inc.

Valence 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(R) technology and Lithium-ion rechargeable batteries. 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 Electric Vehicles International LLC

Electric Vehicles International, with headquarters in Anderson, Ind., designs and manufactures electric trucks, trams and buses for use in inner city applications. Since 1989, the company has developed and manufactured innovative product solutions for inner city transportation worldwide.

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.