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To: da_cheif™ who wrote (489)	1/16/2001 9:50:40 AM
From: Chisy	Respond to of 8150

Cheifee, You genius! Chisy Hanil Valence Alliance Announces Five-Year 30 Million Battery Contract With Chinese Company January 16, 2001 07:01:00 AM ET Hanil Valence Also Announces Initial Export Contract With Korean Trading Company Hanil Valence Receives Excellent Rating From Korea Advanced Institute of Science and Technology SEOUL, Korea, Jan. 16 /PRNewswire/ -- Hanil Valence, a Korean-based joint venture between Valence Technology, Inc. VLNC, a leader in the development and commercialization of solid-state lithium-ion polymer rechargeable batteries, and Hanil Cement Co., Ltd. announced today that it has entered into an agreement to provide over 30 million lithium-ion polymer batteries to a Chinese company over the next five years. The agreement is subject to approval by the Chinese government's Ministry of Telecommunications and Post. Certain commercial terms of the contract including price, delivery and payment conditions are to be negotiated within the initial three-month period following execution of the agreement. The name of the Chinese company and the use of the lithium-ion polymer batteries were not disclosed due to confidentiality obligations. Following approval by the Chinese government, the agreement calls for the delivery of a first test supply of 450,000 cells to be provided by Hanil Valence. The battery orders for 2001 and 2002 are 2.25 and 3.6 million, respectively. Beginning in 2003, each year's orders will increase by 50% over the prior year. Hanil Valence expects orders for over 30 million batteries from this Chinese customer during the 5-year term of the contract. Following Valence Technology's acquisition of Telcordia's remaining rights to lithium- ion battery technology which assists in transforming Valence into a licensor of technology, Valence proposes to modify its joint venture manufacturing agreement with Hanil Valence into a licensing and support agreement under which Hanil Valence will license Valence's lithium-ion technology and use certain key materials purchased from Valence. "With this agreement, Hanil Valence will be the first company in Korea to begin large-scale shipments of lithium-ion polymer batteries," said Lev Dawson, Chairman and Chief Executive Officer of Valence Technology, Inc. "The order for 30 million lithium-ion polymer batteries during the five year contract term underlines the increasing interest in Valence's patented PLiON(TM) lithium-ion polymer technology. We expect our licensees to produce steadily increasing volumes of lithium-ion polymer batteries beginning in 2001," concluded Mr. Dawson. Hanil Valence Signs Export Contract with Trading Company Hanil Valence also announced today that it has signed an initial export contract, valued at approximately W400 million with a Korean trading company, which intends on packaging Valence's lithium-ion polymer cells into batteries for worldwide distribution. Hanil Valence hopes to further develop and expand this relationship in the coming months. Hanil Valence Receives Excellent Rating from Korea Advanced Institute of Science and Technology Hanil Valence received an excellent rating in terms of technological and business abilities by the Technological Competitiveness Rating Center of the Korea Advanced Institute of Science and Technology. The award is the first a Korean lithium polymer battery company has received. Also, the company recently passed the quality test of the Korea Electrotechnology Research Institute. About Hanil Valence The Korean-based Hanil Valence joint venture was formed in 1996 to manufacture, package and distribute rechargeable batteries utilizing Valence's patented lithium ion technologies for the Korean markets. In 2000, Hanil Valence built battery production operations that have the capability of producing more than one million cells a month. Currently, Valence Technology and Hanil Cement Co., Ltd. each own 50% of Hanil Valence. About Valence Technology, Inc. Valence is the leader in the design, manufacture and marketing of rechargeable lithium-ion polymer batteries. In December 2000, Valence acquired Telcordia Technologies Inc.'s remaining patents in solid- state lithium-ion polymer battery technology. Valence operates facilities in Henderson, Nevada and Mallusk, Northern Ireland. Valence is traded on the Nasdaq National Market under the symbol VLNC. Valence can be found on the Internet at valence.com The information contained herein includes forward-looking statements that involve risks and uncertainties. In particular, the establishment, development and potential success of product development and production outcomes are subject to risks and uncertainties both within and outside Valence's control. Among the factors that could cause actual results to differ are the approval of the battery contract by the Chinese government's Ministry of Telecommunications and Post and the ability of Valence to integrate licensing into its operations, including the management of the existing Telcordia licenses. These risk factors are described from time to time in Valence's SEC reports, including on Form 10-K for the year ended March 31, 2000 and on Form l0-Q for the quarters ended June 30, 2000 and September 30, 2000 to which readers are referred. © 2001 PRNewswire