Valence Technology Inc (VLNC) SEC Filing 10-K Annual report for the fiscal year ending Monday, March 31, 2008

Exhibit 99.1

Press Release Dated June 5, 2008

Company Contact:

A. Pierre Dubois

Pierpont Investor Relations

Director of Investor Relations

(512) 527-2921

Valence Technology Reports Fiscal 2008 Fourth Quarter and

Year-End Financial Results

Austin, Texas, June 5, 2008 - Valence Technology, Inc. (NASDAQ:VLNC), a leader in lithium phosphate energy storage systems, today reported financial results for its fiscal 2008 fourth quarter and year ended March 31, 2008.

Summary of results for fiscal 2008 fourth quarter compared to fiscal 2007 fourth quarter:

·                  Revenue increased approximately 62% to $7.8 million compared to $4.8 million.

·                  Gross margin improved to a positive 8.6% or $0.7 million, compared to a negative $0.3 million.

·                  Operating loss was $3.6 million compared to a loss of $4.5 million.

·                  Operating expenses were $4.3 million compared to $4.1 million.

·                  Net loss available to common shareholders was $4.6 million or $0.04 per share, compared to a net loss of $6.0 million or $0.05 per share.

Highlights for fiscal 2008 compared with fiscal 2007 include:

·                  Revenue increased 25% to $20.8 million from $16.7 million last year.

·                  Gross margin increased to 8.8% or $1.8 million, compared to 1.8% or $0.3 million.

·                  Operating expenses declined by $0.4 million, or approximately 2%, compared to the same period last year.

·                  Operating loss was reduced by $1.9 million to $14.4 million.

·                  Net loss available to common shareholders improved to $19.6 million or $0.18 per share, compared to a loss of $22.4 million or $0.22 per share.