AUSTIN, Texas--(BUSINESS WIRE)--Valence Technology (NASDAQ: VLNC) today announced the signing of a three-year exclusive supply agreement with Optare PLC (LSE: OPE), a global leader in the manufacturing of single and double-deck buses and mini coaches. Optare has appointed Valence the exclusive supplier of batteries for its newest zero-emissions fleet bus, the fully electric Optare Solo EV. The supply agreement represents up to $3.8 million in battery system sales for Valence Technology.

“This appointment of Valence as the exclusive supplier of batteries is a testament to the quality and proven performance of our dynamic energy systems. More automotive manufacturers are choosing Valence Technology to help make their vision of clean urban transportation a practical reality,” said Robert L. Kanode, president and CEO, Valence Technology. “And thanks to the UK Government’s Green Bus Fund, bus manufacturers are striving to meet stringent carbon reduction quotas while allowing riders to breathe cleaner air by putting more zero-emissions bus fleets on the road.”

The Optare Solo EV bus features a 600-Volt Valence Technology U-Charge^® lithium phosphate battery system that powers the electric drivetrain. Housed on either side of the centrally mounted drivetrain, the Valence Technology advanced battery banks provide a total capacity of 85 kWh and can be recharged through regenerative braking while in transit, and plug-in power while at base.

Compared to fleet vehicles powered by traditional fuels, the Optare Solo EV electric buses stand to save local governments significant costs in routine maintenance each year.

About Valence Technology, Inc.

Valence Technology is a global 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.

About Optare PLC

Optare is a Leeds, United Kingdom-based global bus and mini coach manufacturer. Building on its history of innovation, Optare is now introducing low-carbon buses with reduced weight designs and optimized drive systems that set the benchmark for fuel economy and CO2 reduction. Optare offers a comprehensive range of low carbon solutions from enhanced diesel technology through alternative fuel options and hybrid systems to zero emission electric drivelines across its product range. The company maintains two manufacturing centers in Northern England and has an annual turnover of approximately £90 million. For more information, please visit www.optare.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, including the quantity of batteries purchased or whether any batteries are purchased under the supply agreement. 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.