AUSTIN, Texas--(BUSINESS WIRE)--Valence Technology today announced it is pleased to provide the safe lithium phosphate energy storage systems for the new plug-in electric Mercedes eVito Taxi. This prototype is a tailpipe-free cab designed to fulfill the zero pollution vision of London mayor Boris Johnson. Road testing will begin immediately to customize the vehicle for specific London taxi driving requirements. For taxi use, the top speed of 75 miles per hour may be reduced and regenerative braking optimized, increasing the projected range beyond 120 miles.

A consortium, involving Mercedes-Benz UK and Zytek Automotive Technology has utilized Valence’s dynamic energy system to develop a tailpipe-free taxi. The goal of the consortium is to deliver a pollution-free fleet of taxis in time for the 2012 London Olympic Games.

“This is a real game-changer for fleet vehicles,” said Robert L. Kanode, President & CEO, Valence Technology. “Valence has been transporting Londoners for over 4 years in double deck hybrid buses. The eVito Taxi is a logical next step for the city, and Valence is ready to immediately fulfill Mercedes' high volume energy storage needs with our proven, safe lithium phosphate technology. We are confident the eVito test will demonstrate the same outstanding performance we have consistently delivered in Valence powered electric vehicle fleets on the road today.”

About the Mercedes eVito Taxi.

The Mercedes eVito Taxi features a 35kWh Valence Technology lithium iron magnesium phosphate intelligent battery system and a 70kW Zytek electric drive train. The conversion from the Mercedes Vito IC to a zero emissions EV has left the internal space of the taxi unaffected leaving plenty of luggage and passenger space. The project partners converted the Mercedes Vito to a fully electric taxi (the eVito) to fully comply with the demanding requirements of the London Carriage Office to be classified as a London Taxi.

About Valence Technology, Inc.

Valence Technology is an international leader in the development of safe, long-life lithium iron magnesium phosphate energy storage solutions and provides the enabling technology behind some of the world’s most innovative and environmentally friendly applications. Founded in 1989, Valence today offers a proven technology and manufacturing infrastructure that delivers ISO-certified products and processes that are protected by an extensive global patent portfolio. Headquartered in Austin, Texas, Valence Technology is strategically aligned by five business segments: Motive, Marine, Stationary, Industrial and Military. 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.

Safe Harbor Statement

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Actual results may vary substantially from these forward-looking statements as a result of a variety of factors. The 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, 2009, 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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