Lithium Iron Magnesium PhosphateSafety and Performance Redefi ned

CorporateOverview

www.valence.com

motive stationary industrial military

Motive

Commercial Vehicles • Buses • Trucks • Vans • Taxis • RVs

Passenger Cars Scooters Motorcycles Trains/Trams

Valence’s technology powers a variety of hybrid electric vehicles (HEVs), plug-in hybrid electric vehicles (PHEVs) and electric vehicles (EVs).

Stationary

Back-up/UPS APU Starters Hybrid Gensets Switch Gear

Valence is currently workingwithmanylarge utility companies. Theobjectiveistoreplace the lead acid batteries with a lighter, lower maintainence, higher performance solution.

Industrial

Floor Cleaners UtilityVehicles Forklifts ElectricTrolleys Wheelchairs Robotics

Valence has developed solutions for light tractionmarketswithindustrial and retail applications.

Military

Defense Homeland Security

Valence lithium phosphate energy storage systems are in use in a variety of military applications, such as communications, survey equipment, robotics and submarines.

MarketsValenceoperatesinseveralmarkets.Ourindustryexpertsunderstandmarkettrendsandcustomerneeds across four sectors.

OverviewValenceTechnology,Inc.isaninternationalleaderinthedevelopmentoflithiumironmagnesiumphosphateenergystoragesolutions.Thecompanyhasredefinedlithiumbatterytechnologyandperformancebymarketingtheindustry’sfirstsafe,reliableandrechargeablelithiumphosphatebattery.

Founded in 1989, Valence offers a proven technology and manufacturing infrastructure that delivers ISO-certifiedproductsandprocessesthatareprotectedbyanextensiveglobalpatentportfolio.

HeadquarteredinAustin,Texas,ValencehasfacilitiesinNevada,ChinaandNorthernIreland.ValenceistradedontheNASDAQCapitalMarketexchangeunderthetickersymbolVLNC.

Products & ServicesValencehasemergedfromastrongtechnologyandIPbasetobecomethe commercial leader in the supply of safe, high volume lithium phosphate products.Weexcelinfourdifferentareas:

Development and manufacture of advanced lithium iron magnesium phosphate cathode materials

Designandmanufactureofprogrammablelithiumironmagnesiumphosphatepacksandfullcustom systems

On-siteapplicationsengineeringintegrationservices Global fulfillment, service and support.

Valence manufactures complete solutions, from cathode materials to cells, modules and energy storage systems. We also have a global team of applications engineers who provide support and integration services.

u-charge®

Providing the power of lithium, the unsurpassed safety of phosphate, and the optimized energy storage of intelligent packs,Valence’sU-Charge® Power System family of products has now been installed in more than 100 applications since it was launched in 2005, offering proven performance.

U-Charge® solutions can now be found in an array of electric vehicleapplicationssuchascars,trucks,vans,buses,scootersandboats.Ithasalsobeenprovidingenergystorage solutions in a range of stationary applications, includingtelecomsback-upandUPS.

www.valence.com

BatteryManagementSystem(BMS)

U-Charge® Family

BatteryDischarge Indicator(BDI)

Intellectual PropertyWith over 400 international patents, Valence holdsanextensivedomesticandworldwideIPportfolioforphosphatecathodematerials,thecriticaltechnologypathwayfornextgeneration energy storage. Ourcurrentfocusisonlithiumironmagnesiumphosphate and we hold many patents in thatimportantcategory.WealsoholdextensiveportfoilioofpatentsonnextgenerationmaterialsLithiumVanadium-basedPhosphate(LVP)andLithiumVanadium-basedFluorophosphates(LVPF).

ThepatentsalsoextendtoValence’sinnovativesingle-steppreparativemethod,knownastheCarbothermalReduction(CTR)process,akeystep for large scale, low-cost manufacturing.

History 1989 – Founded in San Jose, CA 1992–ListedonNASDAQ(VLNC) 1995–LicensedBellcore“flatcell”

technology 1999–Startedmanufacturing,inIreland,of Bellcorecells,LithiumCobaltand LithiumManganese

2002–LaunchedfirstcommercialLithium Phosphate(LP)technology

2005–LaunchedGen1-automotive12V modules

2006–LaunchedGen2-12Vand18V modules, with significantly

improvedBatteryManagement System

2009 – Planned launch of Gen 3 - Epoch technologyformingthebackboneof

thenextgenerationofLPenergy storage systems

Global Fulfillment CentresValencehassetupglobalfulfillmentcentersinRotterdam(Europe)andDallas(NorthAmerica)whichwillenableustopassthebenefitsoflocalinventoryontoourcustomerbase.Thislocalinventorywillimprovedeliverytimes,reducecostsandmaximizecustomersupplychainefficiency.Customerswithsupplyagreements in place with Valence will not only receive local fulfillment, but also have local applications engineering support as part of our tiered customer services program.

Oxygen-EuropeElectricscooter-Upto120km.Postaldeliveries across Europe

PVI-EuropeMaxitytruck-upto80kmcommercialworkhorseplatformforRenaulttrucks

Brammo-NorthAmericaEVBike-Upto50mph

Segway-NorthAmericaOver85,000custompacksshipped

WrightBus-EuropeHybridEVbusoperatingacrossLondon

Gomaco-NorthAmericaPure electric trolley bus for shopping & residential

Smith EV - EuropeCommercial Electric Vehicles - 50 to 100 miles range with top speed of 50mph

Customers & ApplicationsByenablinghigh-performance,safe,cost-effectiveandenvironmentally friendly energy storage solutions for large format applications,ValenceTechnologyisreachingmarketsnottraditionallyserved by lithium ion batteries.

Valencehasagrowinglistofcustomersworkinginawiderangeofapplications.Ourfocushasbeenon“returntobasecommercialfleetvehicles”,andwearedeliveringvolumeordersthatarebeingintegrated into EV and HEV solutions today!

Valence is now starting to focus on passenger vehicles and the stationaryenergystoragemarkets.

Valence MilestonesMore than 100 global customers are actively testing our products across a range of applications. Since 2005 Valence has shipped over 200,000 battery modules or 70 megawatt-hours of stored energy; this is the equivalentofthousandsofvehicles:

= 16,000 scooters

= over 6,500 microcars

= 3,500 4 door fully electric cars

=over1,5003.5metrictontrucks

=over80012metrictontrucks

= 2,000 hybrid buses

=approximately150(182-ft)hybridyachts

OEM RelationshipsOverthepastfewyears,ValencehasstronglyfocusedontheMotivemarket,andwehavedevelopedstrongrelationshipswithanumberofOEMcustomers.

Electric OEMs OEM Link Smith............................ Ford PanelTex.......................Isuzu Micro-vett..................... Fiat TheWrightGroup.........Volvo Oxygen.........................PSAPeugotCitroen Venturi.......................... PSA Peugot Citroen PVI................................Renault Zytek.............................Daimler

Traditional OEMs Fiat Renault PSA Peugot Citroen Daimler Iveco Skoda LandRover MAN Volkswagen Volvo GM BMW

EVI-NorthAmericaIndustrialutilityvehicleforNorthAmericandistribution

Paneltex-EuropeRefrigeratedDeliveryVanforSupermarketdeliveries in Europe

ICCorporation-NorthAmericaAmerica’s1stHybridSchoolBus

Saphion® technology is our energy storage platform. Commercially introduced in 2002, Saphion® refers to the processes and materials used in developing our novel lithium iron magnesiumphosphatecathodematerials.Thistechnology is incorporated in the cells that power our range of energy storage modules.

EpochTM technology is our energy management platform.Introducedin2007,EpochTM is the cell control logic enabling integration of electronics, fi rmware and software which offers enhanced featuresinourenergystoragesolutions.Thisadvanced battery management architecture maximizesmodulelifeandperformancethroughenhanced measurement and control capabilities, while providing a robust communications protocol.Itisahighlyconfigurabletechnologythat enables rapid deployment in custom form factors.

TechnologyValence offers two unique technology platforms offering integrated storage and management solutions.

Oxygen.........................PSAPeugotCitroen Venturi.......................... PSA Peugot Citroen Oxygen.........................PSAPeugotCitroen Venturi.......................... PSA Peugot Citroen PVI................................Renault Zytek.............................Daimler

OperationsValenceEnergyTech(VET)wasestablishedinMay2004withaninitialinvestmentof$15M.Twofacilities,locatedincloseproximitytoeachotherwithintheSuzhouIndustrialPark,havemorethan 100,000 sq. ft. of manufacturing space and employover400staff.TheISO9001Certifiedplants are Valence’s manufacturing facilities forcathodematerialsandpackmanufacturing.VETdeploysSPC(StatisticalProcessControl)methods of manufacturing and is currently workingtowardsTS16949accreditation.

TomeetevergrowingforecasteddemandValenceunderwentanextensivecapacityexpansionprogramduring2008.Thecompanyhasinvested$4Minupgradingthetwofacilitiesto enable a ramp-up capacity to 100+ metric tons of cathode material per month and almost 20 megawatt-hourspermonthofbatterymodules.Investmentsincludestateoftheartfurnaces,weldingstations, wet ball mills and spray dryers.

Focusingonhigh-capacityequipmentandautomation,Valencehasmaximizedfloorspaceusageandminimizedheadcount.Ourcathodepowderandpackprocessesareeasilyscalabletomeetexpectedfuturedemands.In2009,Valenceplanstodelivernewproductlinesincludingnextgenerationbatteryformats and customized battery trays.

Valence Sales & MarketingValence’sGlobalSalesandMarketingisheadquarteredinMallusk,NorthernIreland,withregionalofficesinFrankfurt,GermanyandAustin,Texas(US).MarketDevelopmentManagersfocusondevelopingstrategicindustrysegments.TheycoverbothourEMEAandourNorthAmericanregions.RegionallybasedInsideSalesteamssupport and serve as primary points of contact.

Valence Europe and Asia Pacific Sales officeMallusk,NorthernIreland

Valence Manufacturing FacilitiesSuzhou, China

Applications Engineering SupportOneofValence’sstrengthsishavingregionallybasedteamsofhighlyexperiencedapplicationsengineers supporting our customer base, assisting not only in the design and development of energy storage solutions, but also in the integration, support and training of our customers as they develop their solutions.

OurEuropeanteam,basedinMallusk,N.Irelandhascurrently7engineers;ourUSteambasedinAustin,Texasiscurrentlycomprisedof4engineers.Theseteamsareexpectedtocontinuetoexpandinlinewith business growth.

Research & DevelopmentValenceisdevelopingsolutionsbothfortodayandfortomorrow.OurhighlyexperiencedR&Dteamofscientists and engineers are developing technology platforms and solutions across our entire business.

We have a team specializing in the development of our proprietary cathode materials. We also have a teamdevelopingournextgenerationofcellsandmoduleformats,aswellasfullelectronicintegrationand custom systems.

www.valence.com

Corporate Headquarters

ValenceTechnology12303TechnologyBlvdSuite 950AustinTexas78727

Tel: 1-888-VALENCE or +1 512-527-2900Fax: +1512-527-2910

Europe/Asia Pacific Sales

ValenceTechnologyUnit63MalluskEnterpriseParkMalluskCo. AntrimNorthernIrelandBT364GN

Tel: +44(0)2890845400Fax: +44(0)2890838912

R & D Center

ValenceTechnology1889 E. Maule AveSuite ALasVegasNevada89119

Tel: +1702-558-1000Fax: +1702-558-1001

Investor Relations

A. Pierre DuboisPierpontInvestorRelations

Tel: +1512-527-2921Email:pdubois@piercom.com

Revision Date February 2009Corporate Brochure

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EuropeanEngineeringApplicationsSupportTeamMallusk,NorthernIreland