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Technology Stocks : VALENCE TECHNOLOGY (VLNC) -- Ignore unavailable to you. Want to Upgrade?

To: J. M. Burr who wrote (23213)	2/16/2001 1:22:07 PM
From: Robert Cohen	Read Replies (2) \| Respond to of 27311

JMB, I hate it when you do that! I find myself in agreement with you again. Valence wants to be known as the major player in the Lithium Polymer industry. To be perceived as such they must change the way that they relate to their investors. I agree with your description of the call. Prior to the meeting I sent managemnt a compilation of questions from the thread and from private emails that I had received. Although to be fair I received no assurances from management that they would be answered. here are the questions I submitted: 1. A status report on each of the following contracts. Please address each individually. European cell phone manufacturer Scandinavian customer Domestic cell phone manufacturer High date rate customer Telematics contract Quantum contract Hanil/Valence China contract 2. Details of licensing relationships. If unable to provide specifics regarding names and fees, then at the least an summary of the deals. 3. Status of the technology. Latest Wh/kg numbers for the product that is currently being produced as well as the numbers for the phosphate product. 4. Production numbers including cells/week as well as yields. If unable to provide yield numbers because of competitive reasons ( ULBI announced their numbers and I thought our competitors were now our customers) then a range would be welcome. 5. A forecast of margins (ULBI forecasted 20-30%) 6. To dispell the comments of Greenberg piece, can the company with the current manufacturing process utilizing the modified Bellcore technology including design chemistry and production equipment produce batteries at high volume, high yields and at a price that will produce acceptable margins. 7.Please discuss the importance of recent patents...recycling, tooling which cuts bi-cells at an angle, phosphate chemestry etc. 8. What problems have occurred that have prevented the company from meeting goals and schedules announced in previous conference calls. 9. Using the large format battery, what Wh numbers are we likely to see in a laptop application. In your beta testing, what configurations are you seeing? Battery in base vs behind screen. Can we approach 100 Wh? 10. Are OEM's reluctant to adopt a non removable/imbedded battery? For contracts which have been already announced, are Valence's customers prepared to accept the product as soon as Valence is able to supply it? How much of the delay in delivery of product for contracts already announced is assignable to Valence, and how much is assignable to its customer? "Why hasn't management been agressive in despelling the views that the technology cannot be produced at high production rates and at a profit? Why has not management outlined a plan to profitability including projected revenues from OEM sales, raw material sales, laminate sales as well as income from licenses and royalties. Forcasts of production numbers and income will allow investors to more clearly tell if the company is progressing rather than relying only on the SEC filings." Judge for yourself if you fell that these issues were addressed. There will be an opportunity at the SM to voice these concerns. I would also like to have the CC include reports from sales, production, R&D etc. Now for the positive side. Valence must in the next 3-4 months demonstrate that they can produce at high volumes at a profit. They must sign several major new licensing deals. They must announce a large order for either a PDA or notebook application. A plus and I mean a big plus would be a major announcement with penetration to the lay press that Valence has developed an new battery material that will revolutionize the portable energy market. I beleive that they will accomplish 3 out of 4. Robert

To: J. M. Burr who wrote (23213)	2/16/2001 2:02:33 PM
From: MGV	Respond to of 27311

"It is the promise of a startlingly new technology that drives interest in VLNC, yet, once again, the company gave us an amorphous conference call that provided few answers and raised a mountain of questions." Correct. It is the promise of exciting new technologies that heightens the effect of emotion and potential for manipulation. When you take away all the noise and emotion from the VLNC forecasts over the years, there is one constant - excuses for missing deadlines hiding behind representations of supposed "breakthroughs" and changes in direction.