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

To: Mark Johnson who wrote (26001)	5/2/2003 4:25:39 PM
From: P. Ramamoorthy	Respond to of 27311

Slides from CIBC conference - 6/12/2002 slide 1 Saphion Technology: A Competitive Edge 1. Cycle life 2. High efficiency 3. No memory effect 4. Flexibility 5. No maintenance 6. Lower cost 7. Increased safety 8. Environmentally friendly bar graph - Inherent voltage Iron oxide vs. iron phosphate (1.2V vs. 3.2V) cobalt oxide vs. cobalt phosphate (3.7v vs. 4.7v) slide 2 Today's Lithium-ion Market (in units shipped in Millions) 2001 2003 est. Growth rate Laptops 25 30 9% PDA's 8 14 30% Cell phones 600 856 19% HPC's 1.2 1.6 16% Smart phones 2.2 10.5 118% slide 3 Untapped Market Opportunity Benefits of Saphion technology are expected to greatly expand the traditional markets for Lithium-ion pie chart 1. Consumer $5 Billions 2. Computer & Communications $8 Billions 3. Vehicular $15 Billions 4. Industrial $25 Billions Total $53 Billions Slide 4 Strategy to drive rapid technology adoption 1. Roll-out Saphion Lithium-ion technology 2. Execute balanced licensing and system sales approach 3. Manufacturing plan to leverage in-house and OEM capabilities 4. Partner with cylindrical cell manufacturers slide 5 Early Product Adoption 1. Launched Unique Saphion Technology 2. Initiated product development with Wistron ($3 Billion PC OEM supplier) 3. Engaged with most Tier 1 OEM's 4. Introduced N-Charge Power system with Hewlett Packard slide 6 N-Charge Power System 1. Up to 10 hours notebook PC use 2. Up to 5 days continuous cell-phone talk time 3. Recharges/powers two mobile devices simultaneously 4. Adaptive Sensing Technology 5. Eliminates need for additional device adaptors on the road 6. Recently shipped N-Charge systems to Hewlett-Packard slide 7 System Sales Strategy 1. Leverage demand for Saphion technology a. N-Charge system sales b. Focus on large accounts c. Demonstrate volume and quality track records d. Target additional design wins with Tier 1 companies 2. Maximize Saphion technology adoption through polymer and cylindrical offerings 3. Confirm the technology and establish Valence as a reliable supplier slide 8 Licensing Strategy 1. License proprietary battery chemistries and manufacturing processes to leading manufacturers 2. Increase Saphion technology adoption a. Partner/license with top tier material manufacturers b. Expand to new markets (consumer, vehicular and industrial applications) slide 9 Manufacturing Strategy 1. Technology transitioned from R&D to manufacturing 2. Ramping volume manufacturing 3. Yield improvements through continuous operations 4. Drive economies of scale with increased production 5. Strategically utilize OEM relationships - cylindrical cells and material production slide 10 New, Experienced Management Team 1. Stephan Godevais - Chairman and CEO May 2001 (Hewlett Packard, Dell, Digital Equipment) 2. Joseph Lamoreux - VP of Small Format Energy Solutions May 2001 (IBM, Dell and Compaq) 3. Kevin Mischnick - VP of Finance July 2001 (E&Y) 4. Deepak Swamy - VP of Licensing Operations July 2001 (Acer, Dell) 5. Terry Standefer - VP of Operations Aug 2001 (Dell, Apple computer) 6. Frough Shokoohi - Chief Technology Officer May 2002 (NTK Powerdex, Gould Electronics) 7. George Adamson - VP of Research and Development Dec 1999 (zinc-air power) slide 11 Fully-funded for growth 1. 10/2002 - $20 Million loan agreement 2. 3/2002 - $30 Million equity line of credit 3. 4/2002 - $16.5 Million equity financing slide 12 Summay Highlights 1. Sole source provider of a differentiated technology 2. An expanded market opportunity 3. A comprehensive strategy 4. New management with strong track record ********************************************************** The above is old but helpful in understanding VLNC's progress toward its goals and how well their strategy has been working. Some questions for the next conference call. Ram