VLNC Valence Technology, Inc. (MM)

Valence Technology, Inc. (Nasdaq:VLNC), a leading U.S. based global manufacturer of advanced energy storage solutions, today announced it is supplying the lithium phosphate battery for Heathrow Airport's first electric bus.

Optare Solo EV with regenerative braking, powered by Valence Technology

A photo accompanying this release is available at http://www.globenewswire.com/newsroom/prs/?pkgid=10574

The all-electric Optare Solo, which went into service on September 5th, shuttles British Airways' staff between Terminal 5 at Heathrow and the British Airways' headquarters at Waterside. Operated by Flights Hallmark, the Solo is the first all-electric bus in operation at a UK airport.

"We are very excited about the introduction of the all electric Solo at Heathrow. Flights Hallmark and British Airways are exceptional companies and global leaders in sustainability initiatives. We are confident they will quickly appreciate the many benefits of the Solo EV," stated Optare CEO Jim Sumner.

"Valence is proud to continue to be at the forefront of innovation in the development of electric vehicles that are environmentally friendly and cost efficient. Through our partnership with Optare and their work with forward looking companies like British Airways and Flights Hallmark, we are gratified to be part of high visibility projects such as the Solo that give further credibility to our technology and demonstrate the growing momentum for the electric fleet market," stated Valence president and chief executive officer Robert L. Kanode.

Covering a daily route of between 50 to 60 miles, the green-branded Solo is expected to log nearly 18,000 miles per year, reducing CO2 emissions by an estimated 20 tons compared to a diesel-powered bus.

The Optare Solo's electric drive is powered by a 600-volt Valence U-Charge lithium iron magnesium phosphate battery system. The system provides a total capacity of 85 kWh and can be recharged through regenerative braking in transit and plug-in power at its base at Heathrow.

About Valence Technology, Inc.

Valence Technology is a global leader in the development and manufacture of safe, long-life lithium iron magnesium phosphate advanced energy storage solutions and integrated command and control logic. Headquartered in Austin, Texas, Valence enables and powers some of the world's most innovative and environmentally friendly applications, ranging from commercial electric vehicles to industrial and marine equipment. 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. 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." For more information, visit www.valence.com

The Valence Technology, Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=10210

Safe Harbor Statement:

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Actual results, including realization of any revenues from the sale of batteries to Optare, may vary substantially from these forward-looking statements as a result of a variety of factors. Other risk factors that could affect our actual results are discussed in our periodic reports filed with the Securities and Exchange Commission, including our Annual Report on Form 10-K for the year ended March 31, 2011, and our Quarterly Reports on Form 10-Q, 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.

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         Valence Technology, Inc.
         512.527.2921
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