Valence's news release,
http://home.businesswire.com/portal/site/google/index.jsp?ndmViewId=news_view&ne\
wsId=20050721005058&newsLang=en

was picked up, among other places, at:
<http://www.theautochannel.com/news/2005/07/21/138057.html>http://www.theautocha\
nnel.com/news/2005/07/21/138057.html

July 21, 2005 10:00 AM US Eastern Timezone

Valence Technology Batteries Helps Drive Move to Hybrid Vehicles by
Tripling Fuel Efficiency

PHOTO CAPTION The plug-in hybrid concept vehicle featured in this b-roll
can be driven for longer periods of time in electric mode and offers
dramatically improved gas mileage over normal hybrid vehicles. This is
possible because of its lithium-ion batteries from Valence Technology and
its ability to use AC power to recharge.


AUSTIN, Texas--(BUSINESS WIRE)--July 21, 2005--Valence Technology Inc.
(Nasdaq:VLNC)

WHAT: Rising energy costs, more stringent emissions laws worldwide,
and a call to action through President Bush's latest energy plan
are driving the adoption of hybrid vehicles in the U.S. A
significant factor driving this market is safe, cost-effective,
reliable battery power.

WHO: Valence Technology Inc. and EnergyCS have developed a prototype
"plug-in hybrid electric vehicle" (PHEV) that uses Valence's
safe, environmentally friendly lithium-ion batteries providing
up to three times the fuel efficiency of a standard Toyota
Prius.

AVAILABLE BROADCAST-QUALITY VIDEO:

Gas station signs and pump; concept PHEV in motion and still;
new battery pack developed by EnergyCS and Valence Technology
that powers the PHEV; sound bites from Dean Bogues, vice
president at Valence Technology Inc.; testing of Valence
Technology's Saphion lithium-ion batteries; animated video
depicting how a battery works; Valence Technology logo.



Details:

The U.S. hybrid and EV battery market is expected to reach $4.5 billion in
2008 -- an increase of almost 65% from 2003(a). Valence Technology Inc.
(Nasdaq:VLNC), provider of Saphion(R) technology, the industry's first
commercially available, safe, large-format lithium-ion rechargeable battery
technology, is at the forefront powering a variety of hybrid and electric
vehicles.

When auto manufacturers first developed hybrid vehicles, the only viable
battery technology was nickel-metal-hydride. While some hybrids using these
types of batteries can offer 50 miles per gallon, new battery technology is
now available to enable even greater fuel efficiency and fewer emissions.
Today, hybrid auto manufacturers have access to advanced batteries that use
a phosphate-based lithium-ion chemistry to provide much more energy with
less weight while meeting automobile safety standards.

A New Take on Hybrid Vehicles

A concept PHEV powered by Valence Technology batteries was recently
demonstrated in Europe and the U.S. Based on a 2004 Toyota Prius, the PHEV
has a fuel efficiency that can average up to 150 miles per gallon for a
daily commute of 50-60 miles per day. The car reduces fuel consumption and
emissions, replacing gasoline with clean, regenerable energy. This is
possible because the nickel-metal-hydride battery was replaced with Valence
Technology's Saphion lithium-ion batteries, which provide more than 18
times the energy. As a result, the PHEV can be driven longer in
zero-emission electric mode and offers dramatically improved gas mileage,
which means fewer trips to the gas station.

In addition, the concept PHEV can be plugged into a standard 110V AC
electrical outlet in order to charge the battery, which currently costs as
little as $.33-$1.00 in the U.S. However, if a user chooses not to charge
the battery through renewable power-grid energy, the car operates as a
normal hybrid.

Batteries: Enablers for Hybrid Vehicles

Battery technology is playing a key role in enabling hybrid and electric
vehicles to become more ubiquitous. While the adoption of hybrid vehicles
is faster for industrial and commercial fleets, such as taxis and delivery
vehicles, consumer adoption is not far behind -- especially in countries
with more significant environmental concerns and even higher fuel costs
than in the U.S.

Based on its proprietary Saphion lithium-ion battery technology, Valence
Technology's batteries replace toxic heavy metals with phosphates, creating
an energy storage battery that is chemically more stable, safe and
environmentally friendly than traditional oxide-based batteries. Valence
Technology's batteries are also maintenance-free and offer longer life,
better energy storage characteristics and lower overall ownership costs
when compared to other battery types, such as lead-acid and
nickel-metal-hydride.

About Valence Technology Inc.

Valence Technology developed Saphion(R) technology, the industry's first
commercially available, safe, large-format lithium-ion rechargeable
batteries. 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."
Valence Technology Inc. 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.

(a) Source: Business Communications Technology

NOTE TO EDITORS & PRODUCERS: Broadcast-quality video of concept plug-in
hybrid vehicle and Valence's battery technology can be requested by sending
an e-mail to judy.racino@... or fax to 512-527-2910. Please include
the following information with your request: name, station call letters,
address, city, state, zip code, phone number (this is required by the
shipping company), and e-mail address.

Contacts


Valence Technology Inc., Austin
Reader Contact:
info@... or 888-825-3623
or
Investor Contact:
512-527-2921 or investor@...
or
Media Contact:
Lois Paul Partners LLC
Daphne Kent, 512-638-5305
daphne_kent@...