Valence Announces Product Advisory for Users of N-Charge(R) Portable Energy Storage Solutions

  
    
  
  
    
      Valence Technology Inc. (NASDAQ: VLNC) today announced that it will 
      discontinue manufacture and sales of its N-Charge ® 
      Power System on July 31, 2008, in line with the company’s 
      previously stated strategy to focus on the large-format energy storage 
      market.
    
    
      “Response to the N-Charge system has been 
      positive,” said Bob Kanode, president and CEO 
      of Valence. “However, our decision to 
      discontinue the N-Charge product helps us to focus our resources more 
      effectively on the large-format energy storage market where we expect to 
      see significant growth opportunities.”
    
    
      Affected products are the VNC130 (1001153) and VNC65 (1001152) and 
      associated accessories and peripherals.
    
    
      In an effort to offer support to customers while they transition to a 
      new power solution, Valence will accept orders via its website (www.valence.com) 
      for the VNC130 until July 31, 2008. Shipments will be made in as timely 
      a manner as possible depending on the current production schedules and 
      shipping lead-time. Estimated lead-time can be quoted at time of order. 
      N-Charge adapter cables will be available for sale until July 31, 2009 
      or as supplies last. The VNC65 will be discontinued immediately.
    
    
      Valence will continue to support its 12-month limited warranty. The 
      company will also continue to provide customer care and technical 
      support via the toll free number 1-888-VALENCE (1-888-825-3623) or email 
      at [e-mail].
    
    
      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 Technology 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, Nevada, Mallusk, Northern 
      Ireland, and Suzhou, China. Valence is traded on the Nasdaq Capital 
      Markets under the ticker symbol VLNC and can be found on the internet at www.valence.com.
    
    
      Safe Harbor Statement
    
    
      Some information included in this press release contains forward-looking 
      statements, within the meaning of Section 27A of the Securities Act of 
      1933 and Section 21E of the Securities Act of 1934. These statements can 
      sometimes be identified by the use of forward-looking words such as “may,” 
      “will,” “anticipate,” 
      “estimate,” “except,” 
      “forecast,” “outlook,” 
      “scheduled,” or “intend” 
      and similar expressions. These statements reflect the current views, 
      beliefs and assumptions of Valence, and are subject to various risks and 
      uncertainties that could cause actual results to differ materially from 
      expectations. Among the important factors that could cause actual 
      results to differ materially from those in the forward-looking 
      statements is the actual level of product that Smith Electric Vehicles 
      purchases under the supply agreement; and Valence’s 
      ability to scale its manufacturing and other capacity to fulfill its 
      obligations under the contract if such expectations are met; as well as 
      other factors detailed in Valence’s filings 
      with the Securities and Exchange Commission, including its Annual Report 
      on Form 10-K and Quarterly Reports on 10-Q. Valence does not undertake 
      any obligation to update or supplement any forward-looking statements to 
      reflect subsequent events or circumstances and cannot assure that 
      projected results or events will be achieved.