VLNC Valence Technology, Inc. (MM)

Valence Technology, Inc. (NASDAQ: VLNC) today announced that Tom Gaither, General Manager, Valence Energy Technology China, has assumed responsibilities for all Worldwide Operations following the departure of Ricky Hanna, Vice President of Worldwide Operations. Gaither, 58, will continue working from the company�s Suzhou, China location and report directly to Robert L. Kanode, president and CEO of Valence Technology, Inc. �We have full confidence in Tom, whose significant manufacturing experience has prepared him for expanded responsibilities,� stated Kanode. �Since joining us in 2006, Tom has been a valued member of our operations management team. More recently, he was integral in laying the foundation for the company�s recently announced manufacturing expansion plan to meet anticipated demand for its energy storage systems. Concurrent with his oversight of the expansion which remains on schedule, he will manage China manufacturing operations, supplier sourcing, and coordination of all shipment and fulfillment to our European and North American distribution centers.� Prior to joining Valence Technology, Tom served as Director of Technical Operations for Enhanced Messaging Systems in Southlake, Texas, a manufacturer of infrastructure products for the paging industry. During this period, he was responsible for establishment of the manufacturing function and the day to day operation of all aspects of product manufacturing including material procurement, outsourcing, production, quality assurance and customer support. Prior to Enhanced Messaging Systems, Tom spent 22 years with Motorola designing automation for the manufacture of cellular infrastructure equipment and two way mobile communications products. 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 Technology holds an extensive, worldwide portfolio of issued and pending patents relating to its lithium phosphate rechargeable batteries, the only intrinsically safe lithium rechargeable battery. The company has its headquarters in Austin, Texas, and facilities in Las Vegas, Nevada, Mallusk, Northern Ireland and�Suzhou, China. Valence is traded on the Nasdaq Capital Markets under the ticker symbol VLNC and can be found on the internet at www.valence.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.