VLNC Valence Technology, Inc. (MM)

Valence Technology Inc. (NASDAQ:VLNC) announced today it has postponed its fiscal 2006 fourth quarter and year-end earnings announcement, previously scheduled to take place on Tuesday, June 13, 2006. The postponement provides additional time for management and Deloitte & Touche LLP, the company's independent registered public accounting firm, to finalize the year-end 10-K report. Jim Akridge, President and Chief Executive Officer of Valence, commented on the announcement. "It is of utmost importance to Valence that our shareholders receive the most accurate information available regarding our Company's financial performance. Valence will continue its practice of releasing only numbers audited by an independent registered public accounting firm. This ensures Valence does not have to restate earnings in the future." The Valence management team will host a live conference call and webcast to discuss fiscal year 2006 financial results beginning at 4:00 p.m. ET on Thursday, June 29, 2006. Investors and other interested parties may participate in the call by dialing 800-310-6649 at least 15 minutes prior to the call and entering pass code 7514681, or by listening to the live webcast, which can be accessed on the investor relations section of Valence's Web site, www.valence.com. A replay will be available by phone from 6:00 p.m. ET on Thursday, June 29, 2006, through 12:59 p.m. ET on Wednesday, July 5, 2006. To access the replay, please dial 719-457-0820 and enter pass code 7514681. About Valence Technology, Inc. Valence Technology develops and markets intelligent battery systems using its Saphion(R) technology, the industry's first commercially available, safe, large-format Lithium-ion rechargeable battery technology. Valence Technology holds an extensive, worldwide portfolio of issued and pending patents relating to its Saphion technology and lithium-ion rechargeable batteries. The company has facilities in Austin, Texas, Las Vegas, Nevada, and Suzhou and Shanghai, China. Valence Technology is traded on the NASDAQ Capital Market under the symbol VLNC and can be found on the Internet at www.valence.com. Safe Harbor Statement Litigation Reform Act of 1995, including our statements that we are positioned to realize better execution, improve gross margins, continue to reduce production costs and expenses, realize a strong year in both customer orders and revenue and our financial guidance. Actual results may vary substantially from these forward-looking statements as a result of a variety of factors. Among the important factors that could cause actual results to differ are: the impact of our limited financial resources on our ability to execute on our business plan and the need to raise additional debt or equity financing to execute on that plan; our uninterrupted history of quarterly losses; our ability to service our debt, which is substantial in relationship to our assets and equity values; the pledge of all of our assets as security for our existing indebtedness; the rate of customer acceptance and sales of our products; the continuance of our relationship with a few existing customers, which account for a substantial portion of our current and expected sales in the upcoming year; the level and pace of expansion of our manufacturing capabilities; the level of direct costs and our ability to grow revenues to a level necessary to achieve profitable operating margins in order to achieve break-even cash flow; the level of our selling, general and administrative costs; any impairment in the carrying value of our intangible or other assets; our execution on our business strategy of moving our operations to Asia and our ability to achieve our intended strategic and operating goals; the effects of competition; and general economic conditions. These and other risk factors that could affect actual results are discussed in our periodic reports filed with the SEC, including our Annual Report on Form 10-K for the year ended March 31, 2005 and our Quarterly Report on Form 10-Q for the quarter ended December 31, 2005, 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.