1. The Power of Lithium & Safety of Phosphate Commercial Evolution Commercial Evolution Robert L. Kanode President & CEO June 7, 2011

2. The Power of Lithium & Safety of Phosphate 2 This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Actual results can vary substantially from these forward-looking statements as a result of a variety of factors. These and other risk factors that could affect actual results are discussed in our periodic reports filed with the Securities and Exchange Commission, including our Annual Reports on Form 10-K and subsequent Quarterly Reports on Form 10-Q and other documents filed with the Securities Exchange Commission. The reader is directed to these statements for a further discussion of important factors that could cause actual results to differ materially from those in the forward-looking statements. We disclaim any intent or obligation to update these forward-looking statements. Safe Harbor Statement

3. The Power of Lithium & Safety of Phosphate 3 Our History 1989 Founded in San Jose, CA. 1992 Listed on Nasdaq VLNC 1995 Licensed Bellcore Flat Cell technology 1998 Manufacture of Bellcore cells, Lithium Cobalt, and Lithium Manganese 2002Launched first commercial Lithium Phosphate (LP) Technology 2004 Launched Segway Custom Pack Exclusive Supplier 2005 Launched 12Volt U-Charge® Scalable Modules 2007 Launched 18Volt U-Charge® Scalable Modules 2010 Launched 36Volt U-Charge® Scalable Modules 2011 Planned Launch of Next Generation High Power Custom Systems Transition to Commercial Sales Extensive Patent Estate Enables Valence to Sell in Major World Markets

4. The Power of Lithium & Safety of Phosphate 4 Serving The World 137.4 MWhrs Shipped-to-Date Worldwide Northern Ireland EU Sales & Application Engineering Austin, TX – HQ Finance, Sales & Marketing, Engineering Suzhou, China Cathode Material, Cell & System Manufacturing Las Vegas, NV Material Research & Legal

5. The Power of Lithium & Safety of Phosphate 5 Global Patent Estate Total Granted Patents (all categories): 267 US: 132 Foreign: 135 Total Pending Patents (all categories): 167 US: 42 Foreign:125 Products & Processes Where Patents are Utilized 214 – Lithium Iron Magnesium Phosphate Chemistry 237 – Lithium Vanadium Phosphate Chemistries 67 - Carbothermal Reduction Process (Cathode Manufacturing) 176 - Miscellaneous (Electronics, Software, Pack Engineering, Other Chemistries, Misc.)

6. The Power of Lithium & Safety of Phosphate 6 Compared to Lead Acid ½ Weight 2X Run Time Longer Life Lower Lifetime Cost Reliable 100% Less Self-Discharge Extended Shelf Life Predictable EOL Performance No Maintenance Compared to Lithium Oxides Safe Longer Life Lower Lifetime Cost Reliable Technology Advantages Valence Lithium Iron Magnesium Phosphate Li(Fe,Mg)PO 4

7. The Power of Lithium & Safety of Phosphate 7 Li 3 V 2 (PO 4 ) 3 Higher Voltage, Power & Energy Safe Longer Life Lower Lifetime Cost Reliable Predictable EOL Performance No Maintenance Technology Advantages Valence Lithium Vanadium Phosphate

8. The Power of Lithium & Safety of Phosphate 8 CharacteristicLiCoO 2 LiMn 2 O 4 Li(Fe,Mg)PO 4 Li 3 V 2 (PO 4 ) 3 Theoretical capacity*140 mAh/g*120 mAh/g163 mAh/g197 mAh/g Voltage3.7V3.8V3.2V3.0 - 4.3V Oxygen bondingVery weakWeakStrong Cycle lifeAveragePoorExcellentGood Application needKey characteristicsMaterials needLVP Specific energy High Ah/kg High voltage Pulse power High voltage Low impedance SafetyOxygen bonding Tightly bound oxygen Cycle lifeManyGood cycle life * Complete extraction of lithium causes performance and safety issues for the oxides Valence Patented Lithium Phosphate Family vs. Lithium Oxides

9. The Power of Lithium & Safety of Phosphate 9 High Power Pulsing OCV: Open Circuit Voltage Application example: 10-second burst of power to accelerate from 0-60MPH P1a 18650 power cell (43mOhm DC) 10-second pulse 17A constant current 45W power output at 10 seconds V OCV = 3.3V; V min = 2.6V V OCV V min

10. The Power of Lithium & Safety of Phosphate 10 Maximum Pulse Power Maximum Pulse Power 18650 Power Cell Example Power optimized 18650 23°C Weight ~40g 35-45 mOhm DC Vmin 1.6V cutoff <10 second pulse length High OCV and low resistance deliver higher pulse power for LVP

11. The Power of Lithium & Safety of Phosphate 11 LVP Structure LVP Structure NASICON for High Power NASICON-related structure NASICON = NA (sodium) SuperIonic CONductor MO 6 octahedra, Corner sharing with PO 4 tetrahedra Li ions in 3-D network of cavities Monoclinic crystal system Space group P2 1 /n Minimal, reversible structural changes during removal and insertion of lithium 100% of lithium may be removed safely, in contrast to the layered materials

12. The Power of Lithium & Safety of Phosphate 12 Proven Safety & Long Life Up to 13 Times Less Expensive Than Lead Acid Valence Patented Lithium Phosphate vs. Enersys Genesis Pure Lead Acid

13. The Power of Lithium & Safety of Phosphate 13 Proven Safety, Performance, Reliability & Lowest Cost

14. The Power of Lithium & Safety of Phosphate 14 Fleet Value Equation L Fleet Value Equation Lifetime Savings $550K/Truck Cumulative EV vs. Diesel Fleet Truck Cost

15. The Power of Lithium & Safety of Phosphate 15 Electric Fleet Benefits 57% Estimated Cost Savings Over 25 Years Decreased Exposure to Fluctuation in Diesel Prices Increased Fleet Reliability Lower Labor and Maintenance Costs to Support Fleet Zero Tailpipe Emissions

16. The Power of Lithium & Safety of Phosphate 16 Commercial Products Powered by U-Charge ® From Personal Transporter to Mass Transit Valence Leads The Way! Tested & Approved by

17. The Power of Lithium & Safety of Phosphate 17 Powered by Valence Exclusively Powered by Valence Next Generation EVs Powered by Valence Custom Systems Top Speed 65 MPH / Maximum Range 125 Miles

18. The Power of Lithium & Safety of Phosphate 18 Motive > Marine > Stationary > Medical > Industrial Stationary IndustrialMedical Valence is Following Lithium Opportunities Into a Variety of Markets Fleets 1 st to Market Valence Technology Moving to Other Markets

19. The Power of Lithium & Safety of Phosphate A Common Sense, Scalable Manufacturing Approach to Serve Global Alternative Energy Markets as they Mature and Standards Develop Robert L Kanode President & CEO

20. The Power of Lithium & Safety of Phosphate 20 REFERENCE

21. The Power of Lithium & Safety of Phosphate 21 Fleet Value Assumptions Diesel Delivery Truck Assumptions Conventional Fleet Truck Initial Cost $70,000 Fuel Economy 7 MPG Diesel Cost $4 / Gallon Diesel Cost Increase 5% / year Maintenance Cost $5,000/ Truck Electric Delivery Truck Assumptions Valence Powered Initial Cost $50,000 (Without Engine and Drive Train) Electric Drive Train Components $32,000 Valence extended range battery pack for fleet service $58,000 Electricity Cost Increase 3% / year Battery Pack Replaced Every 10 Years Replacement Batteries Packs are Estimated to be 33% of Todays Cost in 10 Years. Maintenance Cost $1,500 / year Tax Penalty Due to Higher Initial Price (California Sales tax of 8.25% on the difference)

22. The Power of Lithium & Safety of Phosphate 22 Valence Lithium Iron Magnesium Phosphate (P1a) &. Lithium Vanadium Phosphate Rate Capabilities (LVP) LVP capacity and voltage are higher than P1a at all rates and temperatures LVP capacity is less sensitive to rate and temperature than P1a 23°C 1-C rate

23. The Power of Lithium & Safety of Phosphate 23 Technology & Products Patented Technology Vast IP estate with new patents added every year Significant and recent patent infringement victory vs. Phostech Lithium (Canada) Cathode Materials (LFMP, LVP, LVPF) Manufactured with patented carbo-thermal reduction process Cells Full line of cylindrical and prismatic cells U-Charge ® Modular Storage Systems Scalable up to 1,000 volts Featuring Valence interactive Command & Control System Custom Storage Systems With Valence materials, cells and command & control logic Application Engineering Support Integration of energy storage systems into customers applications Program Command & Control Logic to specific custom needs U-Charge® Scalable Systems