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N-CHARGE™ POWER SYSTEM


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VALENCE UNVEILS SECOND GENERATION N-CHARGE™ POWER SYSTEM AT DEMO 2004

New Universal Battery Supports Notebooks PCs, Portable DVD Players, Cell Phones, MP3 Players and More.

PHOENIX, AZ, FEBRUARY 16, 2004 – Today, at DEMO 2004, Valence Technology, Inc. (Nasdaq: VLNC), a leader in the development and commercialization of SaphionŽ technology, the only safe large format Lithium-ion rechargeable battery technology, introduced its second generation N-Charge™ Power System, a universal battery that supports a vast array of mobile electronic devices, including notebook PCs, portable DVD players, cell phones, MP3 players and digital cameras.

The second generation N-Charge Power System utilizes Valence's cylindrical Saphion Lithium-ion technology and smart tip technology from Mobility Electronics. The new N-Charge system offers a modular design for the utmost flexibility. It includes a base system that provides up to 5 hours of additional notebook run-time and a snap-on Expansion Pack to double the energy capacity. The N-Charge system supports the most powerful 90 and 120-Watt notebook PCs and is lightweight, compact and easy to transport.

"We are very excited to be back at DEMO this year, showcasing a product which we believe will become the only choice in safe, universal power," stated Stephan Godevais, chairman and CEO of Valence. "Batteries used in mobile device products are quickly reaching their practical energy limit, yet the power to support the advanced functionality of these products remains in great demand. As a result, we are seeing growing interest for a universal battery accessory, especially a safe one, like the N-Charge system."

The N-Charge Power System offers:

Superior run-time: 5-10 hours of laptop power
Uninterrupted power for a variety of mobile devices: notebook PCs, cell phones, PDA’s, digital cameras, portable DVD players, MP3 players
Innovative Modular Design: Upgradeable N-Charge™ Expansion Pack for double the run-time
Safe, environmentally-friendly, Saphion Lithium-ion technology
Rapid recharge and long life cycle capability

"Valence Technology is a part of the Demonstrating Class of 2004 because it continues to develop emerging new power products that help address society's ever-growing need to be totally wireless," said Chris Shipley, executive producer of DEMO. "Valence is back this year with a solution that not only meets a consumer's power needs in an innovative way, but does so safely."

About Valence Technology, Inc.
Valence is a leader in the development and commercialization of SaphionŽ technology, the only safe large format Lithium-ion rechargeable battery technology. Valence holds an extensive, worldwide portfolio of issued and pending patents relating to its SaphionŽ technology and Lithium-ion rechargeable batteries. The company has facilities in Austin, Texas, Henderson, Nevada and Mallusk, Northern Ireland. Valence is traded on the NASDAQ SmallCap Market under the symbol VLNC and can be found on the Internet at www.valence.com.

About DEMO 2004
The annual DEMO conference focuses on emerging technologies and new products, which are hand-selected by executive producer Chris Shipley from across the spectrum of the personal technology marketplace. Top executives from the leading hardware and software technology companies, venture capitalists, journalists from key industry publications and industry analysts attend the DEMO conference to preview the most promising products and technologies for the coming year. DEMO is held in February each year and features approximately 60 new companies, products and technologies. For more information, visit www.demo.com.

Forward-looking Statements
The information contained herein includes "forward-looking statements." The company cautions readers not to put undue reliance on forward-looking statements. Such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and actual results may differ materially from those described herein, for the reasons, among others, discussed in our reports filed with the Securities and Exchange Commission.


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