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Valence Technology and Delphi Complete Lithium Battery Research

19 May 1998

Valence Technology and Delphi Complete Joint Lithium Polymer Battery Research Project

    HENDERSON, Nev. and FLINT, Mich., May 18 -- Valence
Technology, Inc. and General Motors' Delphi
Automotive Systems have completed a successful collaboration on lithium
polymer battery development, and will now focus on applications in their
individual markets.  Lithium polymer batteries are very powerful for their
size and weight, and are particularly desirable for portable and mobile
applications.
    "Valence has been a valued partner in helping us achieve this milestone,"
said Ronald M. Pogue, director of Delphi's battery business.  Delphi is
targeting production of lithium polymer batteries for hybrid electric vehicles
by the year 2000, Pogue said.
    "Valence will focus on making batteries for portable consumer electronics,
and intends to bring products to market soon," according to Lev Dawson,
Valence's chairman and chief executive officer.  "Delphi's support has been
invaluable to our success," said Dawson.
    Delphi will retain a license to use Valence-developed lithium polymer
technology for vehicular and stationary load leveling/peak shaving
applications.  Valence will retain a license to use Delphi-developed lithium
polymer technology in all other applications.
    Valence Technology, Inc., with headquarters in Henderson, Nev., USA, is
engaged in research and development to produce advanced rechargeable batteries
based on lithium polymer technologies.  Valence is traded on the Nasdaq
National Market under the symbol VLNC.  Valence can be found on the Internet
at http://www.Valence-Tech.com.  The information contained herein about
Valence Technology, Inc. includes forward-looking statements that involve
risks and uncertainties.  In particular, the establishment, development and
potential success of product development and production outcomes could differ
materially from those presented here, depending on factors both within and
outside Valence's control.  These and other risks are described from time to
time in the Valence SEC reports, including Valence's reports Form 1O-K for the
year ended March 29, 1997, to which readers are referred.
    Delphi Automotive Systems, with headquarters in Troy, Mich., USA, is the
world's most diversified supplier of automotive components and systems, with
208 manufacturing facilities, 46 ventures and 27 technical centers in 36
countries.  Regional headquarters are located in Paris, Tokyo and Sao Paulo.
Delphi can be found on the Internet at http://www.delphiauto.com.