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Valence Technology, Inc. (VLNC) New Supply Agreement Expected to Generate up to $24M in Sales by 2016

Valence Technology Inc. is a leading U.S.-based developer and manufacturer of advanced energy storage solutions. The company today announced its multi-year supply agreement with Wrightbus, the United Kingdom’s leading independent supplier of hybrid buses for public transportation systems, which is expected to generate significant revenues over the next six years.

The companies’ working relationship stems from an agreement in 2005, which designates Valence as the battery supplier for Wrightbus’ future hybrid products in the UK and Ireland.

Today’s announced agreement extends the relationship between the two companies through 2016; Valence said it expects the contract to generate between $19 million and $24 million in battery sales through the terms of the agreement, though actual figures are contingent on market demand.

“Valence’s selection as a key supplier to Wrightbus speaks to our product’s performance as well as market acceptance of our advanced energy solutions. Fleet manufacturers, such as Wrightbus, are choosing Valence Technology to help meet their evolving customer needs and requirements for lower emission vehicles,” Robert L. Kanode, president and CEO, Valence stated in the press release.

The Valence technology utilized by Wrightbus is a 600-Volt lithium phosphate battery system that powers the electric drivetrain, providing a high-power solution that can be recharged through an on-board diesel generator or regenerative braking while in transit.

The battery powered buses demonstrate a 35 percent reduction in emissions, and a more than 35-percent increase in fuel efficiency versus even the most efficient diesel powered buses.

“The teams from Wrightbus and Valence Technology have been working together since 2005. Since that time, it has become clear that Valence’s technology has proven to be an excellent complement to our buses. The relationship has only strengthened as we develop our future hybrid product range throughout the UK and Europe,” Wright Group Product Development Director Damian McGarry stated.

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