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Valence Technology and Oxygen Sign Supply Agreement

AUSTIN, Texas & STAVANGER, Norway--Valence Technology Inc. , a leading manufacturer and supplier of lithium iron magnesium phosphate energy storage solutions, has today been named as a supplier of battery systems to Oxygen SpA of Padua, Italy. Oxygen develops and markets a range of light electric vehicles and has targeted the European postal delivery service market with its zero-emission electric-powered CargoScooter.

The three year supply agreement, which was announced today at the EVS-24 event in Stavanger, Norway, is for the supply of Valence battery systems to support Oxygen’s sales of its electrically powered scooters to its customers, including those in the postal delivery market.

Oxygen scooters for Europe boast Italian engineering and design and are assembled by its partner Peugeot Motorcycle (PMTC), part of the PSA Group, in France. Oxygen has announced that by 2010 it expects to double its supply to Swiss Post, Correos (Spain) and Poste Norge as well as its other main institutional customers. Oxygen is also considering entry to the US market with potential production to be carried out in North America.

The Oxygen Cargoscooter powered by Valence’s batteries is significantly less costly to operate and maintain than equivalent petroleum powered vehicles. It can run up to 120 kilometers (74 miles) on a single charge and reach a top speed of 45 km/hour while carrying cargo of up to 90 kg (200 lbs). The model continues to find favor with the main European private and institutional delivery companies, including postal delivery, food and grocery delivery, courier services, and law enforcement.

Alastair Johnston, Valence’s Vice President, Worldwide Sales and Marketing, said: “Oxygen has set the standard for the electric delivery of post in Europe far ahead of its competitors, and we are proud to have contributed the enabling technology which has made this possible. This is another in a series of supply agreements we have signed with vehicle makers in the last 12 months as our technology has been evaluated and gained acceptance in the motive and stationary markets. These supply agreements underline our growing leadership in the automotive sector. Our development of safe energy storage solutions based on lithium iron magnesium phosphate technology is being recognized as one of the best options available by a wide range of vehicle makers as they provide eco-friendly solutions to transportation needs.”

Commenting on the new contract, Antonio Croppo, CEO of Oxygen, said: “Valence has been one of our core technical partners for more than three years and we have been delighted by its service and technology, hence our commitment to sign a supply agreement. We expect to grow our business significantly in the years ahead and Valence will play a key role in our growth.”