VLNC Valence Technology, Inc. (MM)

U-Charge Power Systems Enable Extended Range, Lighter Weight for Power Wheelchairs Valence Technology, Inc. (Nasdaq:VLNC) today announced the delivery of its U-Charge(R) Power Systems to Graham-Field Health Products, a major manufacturer and distributor of healthcare products. These battery systems are based on Valence's proprietary Saphion(R) technology, the industry's first commercially available, safe, large-format lithium-ion rechargeable battery technology. Per an agreement announced in July 2004, Graham-Field has the exclusive right to resell Valence's U-Charge Power System in the power wheelchair and medical scooter markets within the U.S. "Using U-Charge Power Systems, we have been able to dramatically improve the performance and reduce the weight of our new power wheelchair models. We can now provide users with the ability to be completely mobile for an entire day, and lifting chairs in and out of vehicles becomes a much easier task," said Irwin Selinger, president and CEO of Graham-Field. Saphion technology enables the creation of large-format batteries and eliminates safety and environmental concerns associated with oxide-based battery technologies. The U-Charge Power Systems are designed as direct replacements for lead-acid batteries used in deep cycling applications. "Our U-Charge battery systems offer more energy and last much longer than lead-acid batteries, yet are lighter weight and maintenance-free. From a total cost of ownership perspective, our battery systems are an optimal alternative to lead-acid batteries for a number of motive and industrial applications," said Dr. James Akridge, president and CEO of Valence Technology, Inc. About Graham-Field Health Products GF Health Products, Inc., headquartered in Atlanta, GA, is a major manufacturer and distributor of healthcare products for the homecare, long term care and acute care markets. Its products include standard and power wheelchairs, homecare and long term care beds, patient aids, diagnostics and specialty seating products. About Valence Technology, Inc. Valence Technology develops and markets battery systems using Saphion(R) technology, the industry's first commercially available, safe, large-format Lithium-ion 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, and Suzhou and Shanghai, China. Valence is traded on the Nasdaq Capital 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 may contain forward-looking statements, within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Act of 1934. 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 Technology. Factors that could cause actual results to differ include the demand for our products, competitive factors in the businesses in which we compete, continued use and acceptance of our Saphion technology, and the level and pace of expansion of our manufacturing capabilities. These and other risk factors that could affect actual results are discussed in Valence's periodic reports filed with the Securities and Exchange Commission, including its Report on Form 10-Q for the quarter ended June 30, 2005, 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. Valence Technology 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.