VLNC Valence Technology, Inc. (MM)

Valence Technology, Inc. (NASDAQ: VLNC) today announced it is working toward a long-term agreement with Securaplane Technologies, Inc. to develop a customized lithium-phosphate battery pack for use in aviation power applications. The deal would make Securaplane one of the first suppliers to offer safe, lightweight, lithium-phosphate technology for aircraft applications. Benefits of lithium-phosphate include reduced maintenance needs, a long life cycle, robust charging, enhanced monitoring and control and an environmentally friendly design. �We believe the combination of Securaplane�s charging, packaging and high-level integration design with Valence�s expertise in lithium-phosphate battery technology can help us develop a superior product that meets stringent aviation regulations for safety,� said Mike Boost, chief technology officer of Securaplane. �We look forward to partnering with Valence and making a positive impact in avionics by being one of the first to bring the benefits of lithium-phosphate to the aircraft industry.� Under this agreement, both parties have consented to work towards finalizing a long-term contract where Valence will be the sole provider of rechargeable lithium-phosphate batteries for Securaplane�s aviation energy storage systems including select mainship and emergency backup power applications. �Securaplane has been a leading supplier of avionics products for commercial and business aircraft for more than 20 years and has one of the fastest growing battery product lines,� said Robert L. Kanode, president and CEO of Valence. �Securaplane has relationships with virtually all aircraft manufacturers and a history of introducing new technologies to the industry. Through the proposed partnership with Securaplane, we believe Valence further positions itself as an industry leader in lithium-phosphate battery technology and further expands our portfolio of companies utilizing and trusting our safe and reliable energy storage technology.� About Valence Technology, Inc. Valence Technology developed and markets the industry's first commercially available, safe, large-format family of lithium phosphate rechargeable batteries. Valence holds an extensive, worldwide portfolio of issued and pending patents relating to its lithium phosphate rechargeable batteries. The company has its headquarters in Austin, Texas, and facilities in Las Vegas, Mallusk, Northern Ireland, and Suzhou, China. Valence is listed on The NASDAQ Capital Market under the ticker symbol VLNC and can be found on the internet at www.valence.com. About Securaplane Securaplane Technologies, Inc. is a leading supplier of avionics products for commercial, military and business aircraft including Airborne Video and Security Systems, Power Reserve and Conversion Equipment, and essential Wireless Technologies. Securaplane is part of the Pacific Scientific Aerospace Group. More information can be found at Securaplane�s web site, www.securaplane.com. Safe Harbor Statement This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including our statements that we are positioned to realize better execution, improve gross margins, continue to reduce production costs and expenses, realize a strong year in both customer orders and revenue and our financial guidance. Actual results may vary substantially from these forward-looking statements as a result of a variety of factors. Among the important factors that could cause actual results to differ are: the impact of our limited financial resources on our ability to execute on our business plan and the need to raise additional debt or equity financing to execute on that plan; our uninterrupted history of quarterly losses; our ability to service our debt, which is substantial in relationship to our assets and equity values; the pledge of all of our assets as security for our existing indebtedness; the rate of customer acceptance and sales of our products; the continuance of our relationship with a few existing customers, which account for a substantial portion of our current and expected sales in the upcoming year; the level and pace of expansion of our manufacturing capabilities; the level of direct costs and our ability to grow revenues to a level necessary to achieve profitable operating margins in order to achieve break-even cash flow; the level of our selling, general and administrative costs; any impairment in the carrying value of our intangible or other assets; our execution on our business strategy of moving our operations to Asia and our ability to achieve our intended strategic and operating goals; the effects of competition; and general economic conditions. These and other risk factors that could affect actual results are discussed in our periodic reports filed with the Securities and Exchange Commission, including our Report on Form 10-K for the year ended March 31, 2007, and the reader is directed to these statements for a further discussion of important factors that could cause actual results to differ materially from those in the forward-looking statements.