Valence and Securaplane Ink Exclusive Memorandum of Understanding

  
    
  
  
    
      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.