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Technology Stocks : VALENCE TECHNOLOGY (VLNC)

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To: John Curtis who wrote (4044)9/1/1998 9:54:00 AM
From: Alex Fleming  Read Replies (2) of 27311
 
MINNEAPOLIS/HENDERSON, Nev., Sept. 1 /PRNewswire/ -- Alliant Techsystems (NYSE: ATK - news) said the U.S. Army Communications Electronics Command (CECOM), Ft. Monmouth, N.J., has awarded Alliant/Valence, LLC a six-month, $200,000 contract to conduct safety and environmental testing of its lithium ion polymer batteries.

Alliant/Valence, LLC is a joint venture between Alliant Techsystems and Henderson, Nev.-based Valence Technology, Inc. (Nasdaq: VLNC - news) that develops and manufactures advanced rechargeable solid polymer electrolyte batteries for the U.S. and international military markets.

Dr. Pat Narendra, managing director, Alliant Power Sources Center, said the tests for the U.S. Army Communications Electronics Command are an important milestone in Alliant/Valence's efforts to introduce lithium ion polymer battery technology into fielded military systems.

''We are developing several standard-sized and unique replacements for older generation primary and rechargeable batteries, and already have demonstrated several configurations for communications systems, training devices, and 'wearable' applications for the Army's 21st Century Land Warrior,'' said Narendra. ''These configurations now will be tested to validate their safety in the rugged battlefield and training environments encountered by our armed forces.''

Lev Dawson, president and chief executive officer, Valence Technology, said the safety and environmental testing for the Army will be conducted simultaneously with tests already underway for the company's commercial lithium ion polymer products.

''The timing of the tests for the U.S. Army CECOM coincides nicely with the timing of our own battery commercialization efforts at our Northern Ireland manufacturing facility,'' said Dawson. ''Valence quality and safety engineers are working with Alliant/Valence LLC engineers to assess the safety and environmental stability of the lithium ion polymer batteries for consumer and military applications. These tests benefit both the joint venture and Valence as each entity progresses toward manufacturing.''

In 1997, Alliant/Valence, LLC was awarded a $1.2 million contract from the U.S. Army Communications Electronics Command to develop and implement flexible manufacturing processes for lithium ion polymer batteries to meet the Army's projected needs over the next decade. The processes to be developed under the CECOM contract will be implemented in the battery manufacturing line at Alliant's Power Sources Center production facility in Horsham, Pa.

Also in 1997, the joint venture company signed a $5.9 million agreement to develop lithium ion polymer batteries to replace zinc-silver oxide batteries currently used in U.S. Navy underwater vehicles such as the MK-30 target, MK-8 Seal Delivery Vehicle (SDV), and the Advanced Seal Delivery System (ASDS). The MK-30 target is used in anti-submarine warfare training missions, while the SDV and ASDS are used to transport Seal units during special operations missions.

A major developer and manufacturer of military and aerospace batteries, Alliant's Power Sources Center (PSC) has produced more than 27 million lithium reserve batteries used in munitions and fuzes throughout the world. PSC is installing a fully automated lithium battery manufacturing line that will be capable of producing more than six million miniature batteries per year.

Power Sources Center is part of Alliant's Defense Systems Group, which reported fiscal year 1998 sales of $242 million. The group employs approximately 1,100 people and has operations in Florida, Minnesota, Pennsylvania, Texas, and Wisconsin.

Valence Technology, Inc. is headquartered in Henderson, Nev., and is engaged in research and development to produce advanced rechargeable batteries based on lithium and polymer technologies. The company is traded on the Nasdaq national market under the symbol VLNC. Valence can be found on the Internet at valence-tech.com.

Alliant Techsystems is a $1.1 billion aerospace and defense company with approximately 6,600 employees. Headquartered in Hopkins, Minn., the company's business groups are Conventional Munitions, Space and Strategic Systems, and Defense Systems. Company news and information can be found on the Internet at atk.com.

SOURCE: Alliant Techsystems

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Valence Technology Inc (Nasdaq:VLNC - news)
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