Valence Technology Receives $13 Million Battery Order from Smith Electric Vehicles

Valence Technology, Inc. (NASDAQ: VLNC), a leading U.S. based global manufacturer of advanced energy storage solutions, today announced a purchase order from Smith Electric Vehicles U.S. to deliver $13 million of energy storage modules for Smith’s line of all electric commercial trucks through the remainder of 2010.

“On the heels of President Obama’s recent visit to Smith’s Kansas City manufacturing facility, Valence is proud to participate in the administration’s goal to increase the commercialization of electric vehicles while simultaneously stimulating our economy and reducing our dependence on fossil fuels,” said Robert L. Kanode, President and CEO of Valence Technology.

“The order demonstrates, yet again, the strong relationships Valence has built with our customers. The flexibility and immediate availability of our proven U-Charge® system continues to fulfill the high performance energy needs our customers require, offering economies of scale and unchallenged access to major world markets. Our U-Charge® lithium phosphate energy storage solutions are setting the standard for electric powered applications in the commercial fleet market with proven in-field performance and the ability to provide a quiet, pollution-free experience,” continued Kanode.

“Fleet truck customers demand vehicles to meet rigorous reliability and performance standards. Valence products have exceeded these standards for us both in the lab and on the road,” said Bryan Hansel, CEO of Smith Electric U.S.

Smith Electric Vehicles is the nation’s top manufacturer of zero-emissions commercial trucks. Smith produces the Newton, the world’s largest battery-electric-powered truck with a top speed of 50 mph, a range in excess of 100 miles on a single charge, and a payload of up to 16,280 lbs.

Valence Technology is a global leader in the development and manufacture of safe, long-life lithium iron magnesium phosphate energy storage solutions and integrated command and control logic.

These combine to provide the advanced energy systems that enable technologies behind some of the world’s most innovative and environmentally friendly applications, ranging from commercial vehicles to various industrial and marine equipment.

Founded in 1989, Valence Technology today offers a proven technology and manufacturing infrastructure that delivers ISO-certified products and processes that are protected by an extensive global patent portfolio.

Headquartered in Austin, Texas, Valence Technology is strategically aligned by five business segments: Motive, Marine, Stationary, Industrial and Military. In addition to the corporate headquarters in Texas, Valence Technology has its Research & Development Center in Nevada, its Europe/Asia Pacific Sales office in Northern Ireland and global fulfillment centers in North America and Europe. Valence Technology is traded on the NASDAQ Capital Market under the ticker symbol “VLNC.”