Valence Technology Batteries Power Fuel-Efficient School Bus

  
    
  
  
    
      Students may soon be traveling to school in a fuel-efficient bus using 
      Valence Technology, Inc. (NASDAQ:VLNC) batteries. Enova Systems 
      (AMEX:ENA) (AIM:ENV) (AIM:ENVS), a leading supplier of efficient, 
      environmentally friendly Hybrid Electric powered systems, has ordered 
      U-Charge® XP Power 
      Systems based on Saphion® 
      phosphate technology from Valence. Enova Systems, in collaboration with 
      IC Corporation, the nation’s largest school 
      bus manufacturer, recently won a bid with Advanced Energy, a Raleigh, 
      N.C.-based nonprofit corporation, to provide up to 21 hybrid school 
      buses to 11 states. Enova is providing the hybrid drive systems for the 
      nationwide hybrid school bus initiative and is evaluating Valence 
      batteries to power the new line of buses.
    
    
      The project provides operational benefits to school districts, while 
      also providing the reduced emissions desired by the U.S. Environmental 
      Protection Agency and a valuable return on investment to school boards. 
      The hybrid school bus is expected to attain a 100 percent increase in 
      fuel efficiency, which becomes even more essential with rising fuel 
      costs affecting the school districts.
    
    
      “We selected Valence’s 
      Saphion® 
      phosphate batteries for their inherent safety, which addresses the 
      limitations of traditional lithium-ion chemistries particularly in large 
      batteries like those needed for hybrid vehicles,” 
      said John Dexter, Director of Operations and Planning, Enova Systems. “In 
      addition to safety, Saphion technology delivers the power and energy 
      that these buses demand. We are excited to offer school districts 
      clean-running, safe and cost-effective transportation.”
    
    
      The hybrid school bus project features Enova’s 
      post transmission 80-kilowatt hybrid drive system coupled with Valence’s 
      U-Charge Power System. The system is based on a parallel architecture, 
      allowing the system to utilize both diesel and electric power in a 
      highly efficient manner.
    
    
      The U-Charge Power System uses Valence’s 
      patented Saphion® 
      phosphate lithium-ion technology which provides long run-time, 
      exceptional cycle life, and safety. Saphion technology combines the 
      power of lithium-ion with the safety of phosphates, a combination that 
      is powerful yet chemically and thermally stable.
    
    
      The hybrid drive system recovers kinetic energy during regenerative 
      braking; charging the batteries while the bus is slowing down. This 
      ability to charge the batteries provides additional power for 
      acceleration, making school busses ideal candidates for hybrid 
      technology because of the frequent stops and starts they perform along 
      their daily routes.
    
    
      “We’re proud to 
      have the U-Charge XP Power System selected to support the nationwide 
      hybrid school bus initiative,” said Dean 
      Bogues, President of Worldwide Sales & Marketing, Valence Technology, 
      Inc. “Valence’s 
      Saphion batteries offer an alternative for transportation and fleet 
      customers looking to compete against the rising fuel costs and reduced 
      emissions standards to deliver the best combination of performance, 
      safety, cost and reliability.”
    
    
      The U-Charge XP Power System U24 model is a 12.8-volt nominal battery 
      designed in the BCI Group 24 size and operates at standard 12-volt 
      lead-acid voltage ranges. This battery is capable of delivering 1500 
      watts continuous through a full discharge cycle and can handle peak 
      loads up to 3800 watts. The U-Charge XP Power System can charge in less 
      than two hours and power is stored at a high charge efficiency. Each U24 
      model includes integrated battery monitoring electronics and is used in 
      conjunction with a U-BMS or application specific battery management 
      system. As many as 30 of the U-Charge XP Power System batteries can be 
      connected in a series for high voltage applications such as pure 
      electric vehicles, hybrid electric vehicles, marine applications, and 
      power back-up applications.
    
    
      About Enova Systems, Inc.
    
    
      Enova Systems is a leading supplier of efficient, environmentally 
      friendly digital power components and systems products. The company's 
      core competencies are focused on the development and commercialization 
      of power management and conversion systems for mobile and stationary 
      applications. Enova applies unique 'enabling technologies' in the areas 
      of alternative energy propulsion systems for medium and heavy-duty 
      vehicles as well as power conditioning and management systems for 
      distributed generation systems. The company develops, designs and 
      produces drive systems and related components for electric, 
      hybrid-electric, and fuel cell powered vehicles. For further 
      information, contact Enova Systems directly, or visit its Web site at www.enovasystems.com.
    
    
      About Valence Technology, Inc.
    
    
      Valence Technology developed and markets Saphion® 
      technology, the industry’s first commercially 
      available, safe, large-format Lithium-ion phosphate rechargeable battery 
      technology. Valence Technology holds an extensive, worldwide portfolio 
      of issued and pending patents relating to its Saphion technology and 
      lithium-ion rechargeable batteries. The company has facilities in 
      Austin, Texas; Las Vegas, Nevada; Mallusk, Northern Ireland and Suzhou 
      and Shanghai, China. Valence is traded on the Nasdaq SmallCap Market 
      under the 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. Such statements 
      include information relating to business activities and project 
      development. These statements can sometimes be identified by the use of 
      forward-looking words such as “may,” 
      “will,” “anticipate,” 
      “estimate,” “except,” 
      “scheduled,” or “intend” 
      and similar expressions. Such forward-looking information involves 
      important risks and uncertainties that could significantly affect 
      anticipated results in the future and, accordingly, such results may 
      differ materially from those expressed in any forward-looking statements 
      made by or on behalf of Valence. These and other risk factors that could 
      affect actual results are discussed in our periodic reports filed with 
      the SEC, including our Annual Report on Form 10-K for the year ended 
      March 31, 2006, 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. The 
      forward-looking statements included in this press release are made only 
      as of the date of this release. 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.
    
  
Students may soon be traveling to school in a fuel-efficient bus
using Valence Technology, Inc. (NASDAQ:VLNC) batteries. Enova Systems
(AMEX:ENA) (AIM:ENV) (AIM:ENVS), a leading supplier of efficient,
environmentally friendly Hybrid Electric powered systems, has ordered
U-Charge(R) XP Power Systems based on Saphion(R) phosphate technology
from Valence. Enova Systems, in collaboration with IC Corporation, the
nation's largest school bus manufacturer, recently won a bid with
Advanced Energy, a Raleigh, N.C.-based nonprofit corporation, to
provide up to 21 hybrid school buses to 11 states. Enova is providing
the hybrid drive systems for the nationwide hybrid school bus
initiative and is evaluating Valence batteries to power the new line
of buses.

   The project provides operational benefits to school districts,
while also providing the reduced emissions desired by the U.S.
Environmental Protection Agency and a valuable return on investment to
school boards. The hybrid school bus is expected to attain a 100
percent increase in fuel efficiency, which becomes even more essential
with rising fuel costs affecting the school districts.

   "We selected Valence's Saphion(R) phosphate batteries for their
inherent safety, which addresses the limitations of traditional
lithium-ion chemistries particularly in large batteries like those
needed for hybrid vehicles," said John Dexter, Director of Operations
and Planning, Enova Systems. "In addition to safety, Saphion
technology delivers the power and energy that these buses demand. We
are excited to offer school districts clean-running, safe and
cost-effective transportation."

   The hybrid school bus project features Enova's post transmission
80-kilowatt hybrid drive system coupled with Valence's U-Charge Power
System. The system is based on a parallel architecture, allowing the
system to utilize both diesel and electric power in a highly efficient
manner.

   The U-Charge Power System uses Valence's patented Saphion(R)
phosphate lithium-ion technology which provides long run-time,
exceptional cycle life, and safety. Saphion technology combines the
power of lithium-ion with the safety of phosphates, a combination that
is powerful yet chemically and thermally stable.

   The hybrid drive system recovers kinetic energy during
regenerative braking; charging the batteries while the bus is slowing
down. This ability to charge the batteries provides additional power
for acceleration, making school busses ideal candidates for hybrid
technology because of the frequent stops and starts they perform along
their daily routes.

   "We're proud to have the U-Charge XP Power System selected to
support the nationwide hybrid school bus initiative," said Dean
Bogues, President of Worldwide Sales & Marketing, Valence Technology,
Inc. "Valence's Saphion batteries offer an alternative for
transportation and fleet customers looking to compete against the
rising fuel costs and reduced emissions standards to deliver the best
combination of performance, safety, cost and reliability."

   The U-Charge XP Power System U24 model is a 12.8-volt nominal
battery designed in the BCI Group 24 size and operates at standard
12-volt lead-acid voltage ranges. This battery is capable of
delivering 1500 watts continuous through a full discharge cycle and
can handle peak loads up to 3800 watts. The U-Charge XP Power System
can charge in less than two hours and power is stored at a high charge
efficiency. Each U24 model includes integrated battery monitoring
electronics and is used in conjunction with a U-BMS or application
specific battery management system. As many as 30 of the U-Charge XP
Power System batteries can be connected in a series for high voltage
applications such as pure electric vehicles, hybrid electric vehicles,
marine applications, and power back-up applications.

   About Enova Systems, Inc.

   Enova Systems is a leading supplier of efficient, environmentally
friendly digital power components and systems products. The company's
core competencies are focused on the development and commercialization
of power management and conversion systems for mobile and stationary
applications. Enova applies unique 'enabling technologies' in the
areas of alternative energy propulsion systems for medium and
heavy-duty vehicles as well as power conditioning and management
systems for distributed generation systems. The company develops,
designs and produces drive systems and related components for
electric, hybrid-electric, and fuel cell powered vehicles. For further
information, contact Enova Systems directly, or visit its Web site at
www.enovasystems.com.

   About Valence Technology, Inc.

   Valence Technology developed and markets Saphion(R) technology,
the industry's first commercially available, safe, large-format
Lithium-ion phosphate rechargeable battery technology. Valence
Technology holds an extensive, worldwide portfolio of issued and
pending patents relating to its Saphion technology and lithium-ion
rechargeable batteries. The company has facilities in Austin, Texas;
Las Vegas, Nevada; Mallusk, Northern Ireland and Suzhou and Shanghai,
China. Valence is traded on the Nasdaq SmallCap Market under the
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.
Such statements include information relating to business activities
and project development. These statements can sometimes be identified
by the use of forward-looking words such as "may," "will,"
"anticipate," "estimate," "except," "scheduled," or "intend" and
similar expressions. Such forward-looking information involves
important risks and uncertainties that could significantly affect
anticipated results in the future and, accordingly, such results may
differ materially from those expressed in any forward-looking
statements made by or on behalf of Valence. These and other risk
factors that could affect actual results are discussed in our periodic
reports filed with the SEC, including our Annual Report on Form 10-K
for the year ended March 31, 2006, 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. The forward-looking statements included in
this press release are made only as of the date of this release.
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.