Valence is the battery supplier for EnergyCS, CalCars' Southern California
partner for development of PRIUS+

http://biz.yahoo.com/bw/050329/295343.html?.v=1

Plug-In Hybrid Vehicle Powered by Valence Battery Unveiled at EVS 21
Tuesday March 29, 9:30 am ET
New Concept Car Developed With EnergyCS Offers Dramatically Better Gas
Mileage and More Zero Emission Driving Than Existing Hybrids

MONACO & AUSTIN, Texas--(BUSINESS WIRE)--March 29, 2005-- At the 21st
Worldwide International Battery, Hybrid and Fuel Cell Electric Vehicle
Symposium & Exhibition (EVS 21) being held next week, Valence Technology
Inc. (Nasdaq:VLNC - News), a leader in the development of large-format
Lithium-ion rechargeable batteries, and EnergyCS, developers of integration
control systems, will showcase a new concept plug-in hybrid electric vehicle.

Powered by the Valence U-Charge(TM) Power System, the plug-in hybrid
electric vehicle (PHEV) is a fully functional concept car based on a 2004
Toyota Prius. Because the Valence battery offers much more energy than
batteries traditionally used in hybrid vehicles, it allows significant
amounts of zero-emission driving with the concept PHEV. With a fuel
efficiency that can reach up to 180 miles per gallon for an average commute
of 50-60 miles per day, the PHEV has superior gas mileage, which means
fewer trips to the gas station. Using the U-Charge system, the PHEV offers
the best of both worlds: zero-emission electric mode (up to 33 mi/h, 53
km/h) and an efficient gas motor for long trips.

Valence will exhibit in EVS 21 Booth C128 and the Valence-EnergyCS PHEV
will be on display at the Ride and Drive area throughout the EVS 21 show.
The vehicle will also be part of the Rallye Monte-Carlo Fuel Cell & Hybrid
on April 2.

"Valence's phosphate-based Lithium-ion batteries have substantially higher
energy density than competing batteries for hybrid electric vehicles. And,
unlike other types of Lithium-ion batteries, our Saphion technology offers
the longevity and safety needed for both hybrid and pure electric
vehicles," said Stephan Godevais, president and CEO of Valence Technology.
"The Valence-EnergyCS plug-in hybrid vehicle is a breakthrough in the
industry. It allows renewable energy to displace gasoline, reducing our
reliance on fossil fuels, which is increasingly important given today's
environment and economic concerns."

The U-Charge battery system used in the Valence-EnergyCS PHEV is based on
Valence's Saphion® technology, the only one like it on the market today. It
replaces toxic heavy metals with phosphates, creating an energy storage
battery that is chemically more stable, and therefore safer, than
traditional oxide-based Lithium-ion batteries. Saphion technology's
chemistry yields a battery that is not only environmentally friendly, but
requires virtually no maintenance and offers long life and low total cost
of ownership.

About EnergyCS

Energy Control Systems Engineering (EnergyCS) is a privately held company
based in Monrovia, California. It provides leading-edge consulting, design
and prototyping services for system integration, management and monitoring
of electrochemical energy systems such as batteries and fuel cells. The
company is focused on and particularly interested in applications in the
areas of EV and HEV transportation and alternative energy on systems from
24 to 1000 VDC.

About Valence Technology Inc.

Valence is a leader in the development and commercialization of Saphion®
technology, the only safe large format Lithium-ion rechargeable battery
technology. Named in 2004 as a Top 100 Innovative Company by Red Herring,
Valence 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, Henderson, Nevada
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

The information contained herein includes "forward-looking statements." The
company cautions readers not to put undue reliance on forward-looking
statements. These forward-looking statements are not guarantees of future
performance and involve risks and uncertainties, and actual results may
differ materially from those described herein, for the reasons, among
others, discussed in our reports filed with the Securities and Exchange
Commission.
Contact:

Valence Technology Inc., Austin
Investor Contact:
Judy Racino, 512-527-2921
judy.racino@...
or
Media Contact:
Lois Paul & Partners LLC, Austin
Daphne Kent, 512-638-5305
daphne_kent@...


Source: Valence Technology Inc.