Valence Technology Announces First Full Valence Licensee

Agreement Represents First License Resulting from Recently Announced

Licensing Program



Apr 17, 2001, 01:00 ET from Valence Technology, Inc.

    HENDERSON, Nev., April 17 /PRNewswire/ -- Valence Technology, Inc.
 (Nasdaq: VLNC), a leader in the development and commercialization of lithium-
 ion polymer rechargeable batteries, today announced that it has entered into a
 technology transfer agreement with Elite Ionergy, Co., Ltd. (EIC), a
 privately-held Taiwanese manufacturer and marketer of lithium-ion polymer
 batteries.  This agreement will allow EIC to expand its existing license to
 use technology, purchased by Valence in December 2000 from Telcordia to
 include Valence's internally developed patented technology covering the
 manufacture and use of lithium-ion polymer batteries. This expanded license
 will provide EIC with full access to Valence's proprietary materials,
 processing techniques, production scale-up know-how and machine design
 necessary for volume production of lithium-ion polymer batteries, including
 all existing PLiON(TM) technology.
     As part of this agreement, Valence Technology will receive an initial
 $500,000 licensing fee and quarterly royalty payments based on net revenues
 derived from the sale of lithium-ion polymer batteries manufactured by EIC
 using Valence's proprietary technology. Royalty payments will range between
 2% - 6% based on volume and battery material.
     William H. Chu, Chairman & CEO of EIC said, "EIC is developing
 manufacturing capability of 1 million lithium-ion polymer batteries per month
 in its Taiwan facility with plans of expanding production ultimately to
 6 million batteries per month in 3 years.  Production is anticipated to start
 in the second half of 2001.  We believe that Valence Technology's intellectual
 property will represent one of the key factors supporting our successful entry
 and expansion into the lithium-ion polymer battery market.  We believe
 Valence's proprietary materials, consulting, and production scale-up know-how
 will enable us to compete more effectively against traditional manufacturers
 of lithium-ion batteries.  We look forward to begin working immediately with
 Valence in anticipation of the launch of our lithium-ion polymer batteries
 currently scheduled for late 2001."
     Michael Mahan, Sr. Vice President of Marketing & Sales and Licensing
 stated, "This agreement represents our first full Valence license since the
 acquisition of the Bellcore technology from Telcordia in December 2000.  Since
 that time, Valence has been in discussions with several of the licensees
 acquired in the Telcordia transaction, including EIC, as well as several new
 potential licensees interested in manufacturing lithium-ion polymer batteries.
 We are proud to have EIC as the founding member of our group of Valence global
 licensees."
     Valence Technology acquired 15 existing licensing agreements in December
 of 2000. Since that time, Valence has been in discussions with licensees
 acquired in the Telcordia as well as several new potential licensees
 interested in manufacturing lithium-ion polymer batteries. Valence
 Technology's patent portfolio for lithium-ion polymer battery technology
 consists of over 790 issued and pending worldwide, including 284 issued in the
 U.S.
 
     About Elite Ionergy Co. Ltd.
     Established in June 1999, Elite Ionergy is a private enterprise developing
 production capability to address world market demand for lithium-ion polymer
 batteries in the computing, communications and consumer markets. Located in
 Kuan-Yin Industrial District, Tao-Yuan Hsien, Taiwan, EIC has 15,650 square
 meters of production area in a four-story office and manufacturing facility.
 EIC is presently in the final stages of pre-production development process
 review and anticipates production later this year.
 
     About Valence Technology, Inc.
     Valence is the leader in the design, manufacture and marketing of
 rechargeable lithium-ion polymer batteries.  In December 2000, Valence
 acquired Telcordia Technologies Inc.'s remaining patents in lithium-ion
 polymer battery technology.  Valence operates facilities in Henderson, Nevada
 and Mallusk, Northern Ireland. Valence is traded on the Nasdaq National Market
 under the symbol VLNC.  Valence can be found on the Internet at
 http://www.valence.com
 
     The information contained herein includes forward-looking statements that
 involve risks and uncertainties. In particular, the establishment, development
 and potential success of product development and production outcomes are
 subject to risks and uncertainties both within and outside Valence's control.
 Among the factors that could cause actual results to differ are the ability of
 Valence to integrate licensing into its operations, including the management
 of the existing Telcordia licenses. These risk factors are described from time
 to time in Valence's SEC reports, including on Form 10-K for the year ended
 March 31, 2000 and on Form l0-Q for the quarters ended June 30, 2000,
 September 30, 2000 and December 31, 2000 to which readers are referred.
 
 

SOURCE Valence Technology, Inc.
    HENDERSON, Nev., April 17 /PRNewswire/ -- Valence Technology, Inc.
 (Nasdaq: VLNC), a leader in the development and commercialization of lithium-
 ion polymer rechargeable batteries, today announced that it has entered into a
 technology transfer agreement with Elite Ionergy, Co., Ltd. (EIC), a
 privately-held Taiwanese manufacturer and marketer of lithium-ion polymer
 batteries.  This agreement will allow EIC to expand its existing license to
 use technology, purchased by Valence in December 2000 from Telcordia to
 include Valence's internally developed patented technology covering the
 manufacture and use of lithium-ion polymer batteries. This expanded license
 will provide EIC with full access to Valence's proprietary materials,
 processing techniques, production scale-up know-how and machine design
 necessary for volume production of lithium-ion polymer batteries, including
 all existing PLiON(TM) technology.
     As part of this agreement, Valence Technology will receive an initial
 $500,000 licensing fee and quarterly royalty payments based on net revenues
 derived from the sale of lithium-ion polymer batteries manufactured by EIC
 using Valence's proprietary technology. Royalty payments will range between
 2% - 6% based on volume and battery material.
     William H. Chu, Chairman & CEO of EIC said, "EIC is developing
 manufacturing capability of 1 million lithium-ion polymer batteries per month
 in its Taiwan facility with plans of expanding production ultimately to
 6 million batteries per month in 3 years.  Production is anticipated to start
 in the second half of 2001.  We believe that Valence Technology's intellectual
 property will represent one of the key factors supporting our successful entry
 and expansion into the lithium-ion polymer battery market.  We believe
 Valence's proprietary materials, consulting, and production scale-up know-how
 will enable us to compete more effectively against traditional manufacturers
 of lithium-ion batteries.  We look forward to begin working immediately with
 Valence in anticipation of the launch of our lithium-ion polymer batteries
 currently scheduled for late 2001."
     Michael Mahan, Sr. Vice President of Marketing & Sales and Licensing
 stated, "This agreement represents our first full Valence license since the
 acquisition of the Bellcore technology from Telcordia in December 2000.  Since
 that time, Valence has been in discussions with several of the licensees
 acquired in the Telcordia transaction, including EIC, as well as several new
 potential licensees interested in manufacturing lithium-ion polymer batteries.
 We are proud to have EIC as the founding member of our group of Valence global
 licensees."
     Valence Technology acquired 15 existing licensing agreements in December
 of 2000. Since that time, Valence has been in discussions with licensees
 acquired in the Telcordia as well as several new potential licensees
 interested in manufacturing lithium-ion polymer batteries. Valence
 Technology's patent portfolio for lithium-ion polymer battery technology
 consists of over 790 issued and pending worldwide, including 284 issued in the
 U.S.
 
     About Elite Ionergy Co. Ltd.
     Established in June 1999, Elite Ionergy is a private enterprise developing
 production capability to address world market demand for lithium-ion polymer
 batteries in the computing, communications and consumer markets. Located in
 Kuan-Yin Industrial District, Tao-Yuan Hsien, Taiwan, EIC has 15,650 square
 meters of production area in a four-story office and manufacturing facility.
 EIC is presently in the final stages of pre-production development process
 review and anticipates production later this year.
 
     About Valence Technology, Inc.
     Valence is the leader in the design, manufacture and marketing of
 rechargeable lithium-ion polymer batteries.  In December 2000, Valence
 acquired Telcordia Technologies Inc.'s remaining patents in lithium-ion
 polymer battery technology.  Valence operates facilities in Henderson, Nevada
 and Mallusk, Northern Ireland. Valence is traded on the Nasdaq National Market
 under the symbol VLNC.  Valence can be found on the Internet at
 http://www.valence.com
 
     The information contained herein includes forward-looking statements that
 involve risks and uncertainties. In particular, the establishment, development
 and potential success of product development and production outcomes are
 subject to risks and uncertainties both within and outside Valence's control.
 Among the factors that could cause actual results to differ are the ability of
 Valence to integrate licensing into its operations, including the management
 of the existing Telcordia licenses. These risk factors are described from time
 to time in Valence's SEC reports, including on Form 10-K for the year ended
 March 31, 2000 and on Form l0-Q for the quarters ended June 30, 2000,
 September 30, 2000 and December 31, 2000 to which readers are referred.
 
 SOURCE  Valence Technology, Inc.