Commercial Evolution Robert L. Kanode President & CEO June 7, 2011

1. Commercial EvolutionRobert L. KanodePresident & CEOJune 7, 2011

2. Safe Harbor Statement 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.

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 • 2002 Launched 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. Serving The World137.4 MWhrs Shipped-to-Date Worldwide Northern Ireland EU Sales & Application Engineering Austin, TX – HQ Finance, Sales & Marketing, Engineering Las Vegas, NV Material Research & Legal Suzhou, China Cathode Material, Cell & System Manufacturing

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. Technology Advantages Valence Lithium Iron Magnesium Phosphate 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 Li(Fe,Mg)PO4

7. Technology Advantages Valence Lithium Vanadium Phosphate Higher Voltage, Power & Energy Safe Longer Life Lower Lifetime Cost Reliable Predictable EOL Performance No Maintenance Li3V2(PO4)3

8. Valence Patented Lithium Phosphate Familyvs. Lithium Oxides * Complete extraction of lithium causes performance and safety issues for the oxides

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

10. Maximum Pulse Power18650 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. LVP StructureNASICON for High Power • NASICON-related structure • NASICON = NA (sodium) SuperIonic CONductor • MO6 octahedra, • Corner sharing with PO4 tetrahedra • Li ions in 3-D network of cavities • Monoclinic crystal system • Space group P21/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. Proven Safety & Long LifeUp to 13 Times Less Expensive Than Lead Acid Valence Patented Lithium Phosphate vs. Enersys Genesis Pure Lead Acid

13. Proven Safety, Performance, Reliability & Lowest Cost

14. Fleet Value EquationLifetime Savings $550K/Truck Cumulative EV vs. Diesel Fleet Truck Cost

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. Commercial Products Powered by U-Charge® From Personal Transporter to Mass Transit Valence Leads The Way! Tested & Approved by

17. Powered by Valence Exclusively Powered by Valence Next Generation EV’s Powered by Valence Custom Systems Top Speed 65 MPH / Maximum Range 125 Miles

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

19. “A Common Sense, Scalable Manufacturing Approach to Serve Global Alternative Energy Markets as they Mature and Standards Develop” Robert L Kanode President & CEO

20. REFERENCE

21. 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 Today’s 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) Fleet Value Assumptions

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. 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