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VALENCE TECHNOLOGY AND DELCO REMY SIGN ELECTRIC VEHICLE AGREEMENT;

VALENCE TECHNOLOGY AND DELCO REMY SIGN ELECTRIC VEHICLE AGREEMENT;
 $14.5 Million Pact Expands Prototype Battery Sales to
 Chrysler, Ford, EPRI
 SAN JOSE, Calif. Nov. 12 /PRNewswire/ -- Valence Technology Inc. (NASDAQ: VLNC) today announced that it has signed an agreement with Delco Remy, a division of General Motors Corp. The agreement formalizes Valence Technology's participation with Delco Remy in the development of high-energy lithium polymer batteries for electric vehicles. The program is to be sponsored by the United States Advanced Battery Consortium (USABC) and is subject to Department of Energy (DOE) approval. Today's compact is in addition to Valence Technology's existing $20 million contract with Delco Remy.
 Valence Technology will receive $14.5 million to embark on a 30-month project to apply and extend its existing lithium polymer battery expertise and technology to the development of electric vehicle (EV) power systems under the terms of the grant awarded to the Valence Technology and Delco Remy alliance. The high energy systems developed under the agreement will be tested by USABC for suitability in battery-powered transportation and will be measured in terms of safety, performance, cost, longevity and environmental impact.
 Lev Dawson, chairman and chief executive officer of Valence Technology, stated, "Today's agreement grants access to the Valence developed batteries by all USABC partners, including for the first time Ford and Chrysler, as well as the Electric Power Research Institute (EPRI), which is interested in the research and development of high energy batteries for the utility industry. Valence Technology will be allowed to provide electric vehicle batteries to Ford, Chrysler and EPRI until such time as Delco Remy begins production under its license agreement with Valence Technology. The new agreement provides a potentially much larger market for EV battery sales.
 "The strategic relationship we established last year with Delco Remy, our selection by USABC to participate in the development of this vital technology and the signing of today's agreement are conspicuous milestones in our company's history,'' Dawson said.
 "We are very excited about the tremendous potential for lithium polymer batteries. By using lithium and polymer technologies, we can provide very high energy densities, allowing us to produce lighter, smaller and more powerful batteries than those currently on the market. Using Valence Technology's proprietary solid-polymer technology, we have created a lithium battery with tremendous design flexibility, allowing our batteries to be produced in a continuous process and formed into any shape or size desired," Dawson added.
 At recent ceremonies in Washington, D.C., the USABC announced that five corporations and three national laboratories were chosen to participate in this industry, government research project designed to make electric vehicles practical and environmentally beneficial.
 The USABC was formed in January 1991 as a partnership of General Motors Corp., Chrysler Corp. and Ford Motor Co., with participation from the electric utility industry through the Electric Power Research Institute. In October 1991, USABC officially became a four- year joint industry, government consortium organized to develop a new generation of batteries for electric vehicles.
 Valence Technology Inc. is engaged in R&D to produce advanced, rechargeable battery technologies based on lithium and solid polymer technologies. Basic research is complete and the company has the ability to manufacture limited production quantities at its San Jose, facility. Management believes that its batteries, when commercially introduced, will offer a number of performance characteristics superior to those currently available and offers the greatest applications in a number of electronic consumer products, such as personal computers, cellular telephones, camcorders, hand-held tools, portable electronic entertainment products, as well as automotive applications, including electric vehicles. Valence Technology became a public company in May 1992 with an initial public offering of 4.14 million shares and recently completed an additional secondary offering of 4.6 million shares. Valence stock is traded on the NASDAQ National Market System under the symbol VLNC.
 To receive the latest information about Valence via fax, no cost., call 800-PRO-INFO, code 137.
 -0- 11/12/92 R
 /CONTACT: Lev Dawson, chairman and CEO, 408-365-6125; or Gary Strong, Nick Farina, 312-266-7800 at The Financial Relations Board for Valence Technology Inc/
 (VLNC) CO: Valence Technology Inc. ST: California IN: CPR AUT SU: JVN


EH -- LA016 -- 0311 11/12/92 15:25 EST
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Date:Nov 12, 1992
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