EXHIBIT 99.1
For More Information:
VALENCE TECHNOLOGY, INC.
301 Conestoga Way
Henderson, Nevada 89015
(702) 558-1000
CONTACT: Jay L. King
Vice President and Chief Financial Officer
VALENCE TECHNOLOGY COMPLETES BELLCORE BATTERY TECHNOLOGY ACQUISITION
HENDERSON, Nev., December 27, 2000 -- Valence Technology, Inc. (Nasdaq: VLNC), a
leader in the development and commercialization of lithium-ion polymer
rechargeable batteries, today announced that the Federal Trade Commission (FTC)
has granted early termination of the waiting period under the Hart-Scott-Rodino
Antitrust Improvements Act with respect to the Company's acquisition of all of
Telcordia's BELLCORE lithium-ion polymer battery intellectual property rights
for 3 million newly issued shares of Valence Technology. With receipt of
antitrust notice of early termination, the company has completed the transaction
with Telcordia. "This milestone acquisition, which gives Valence all of
Telcordia's rights in the battery field as they relate to solid-state
lithium-ion polymer batteries, will enable the Company to become the leading
licensor of lithium-ion polymer technology worldwide," said Lev Dawson, Chairman
and Chief Executive Officer of Valence Technology, Inc. "We look forward to
aggressively executing our new licensing business model in the coming year."
On November 9, 2000, Valence Technology announced an agreement to acquire all
rights in lithium-ion polymer battery technology from Telcordia Technologies,
Inc. (formerly Bellcore) for 3 million newly issued shares of Valence common
stock. Following the acquisition, Valence intends to package the acquired
technology with its own internally developed lithium-ion polymer battery
technology, and actively license the package of technology and know-how
worldwide. The transaction will provide Valence all of the Bellcore patent
rights covering lithium-ion, solid state, polymer batteries (also known as
"plastic batteries.")
The purchase includes the acquisition of 42 U.S. patents, 14 U.S. patents
pending, and more than 200 foreign patents issued and pending, 15 Bellcore
licenses with battery manufacturers throughout the world, and all trademark
rights in the mark "PLiON." The addition of the BELLCORE patents brings
Valence's portfolio of patents to over 790 issued and pending worldwide,
including 284 issued in the U.S.
ABOUT VALENCE TECHNOLOGY INC.
Valence is the leader in the design, manufacture and marketing of rechargeable
lithium-ion polymer batteries. In November 2000, Valence announced the
acquisition of the remaining patents in lithium-ion polymer battery technology
from Telcordia Technologies Inc. for 3 million newly issued shares of Valence
common stock. The Company operates facilities in Henderson, Nevada and Mallusk,
Northern Ireland. Valence is traded on the Nasdaq National Market under the
symbol VLNC. Valence can be found on the Internet at http://www.valence.com.
THE INFORMATION CONTAINED HEREIN INCLUDES FORWARD-LOOKING STATEMENTS THAT
INVOLVE RISKS AND UNCERTAINTIES. IN PARTICULAR, THE ESTABLISHMENT, DEVELOPMENT
AND POTENTIAL SUCCESS OF PRODUCT DEVELOPMENT AND PRODUCTION OUTCOMES ARE SUBJECT
TO RISKS AND UNCERTAINTIES BOTH WITHIN AND OUTSIDE VALENCE'S CONTROL. AMONG THE
FACTORS THAT COULD CAUSE ACTUAL RESULTS TO DIFFER ARE THE ABILITY OF VALENCE TO
INTEGRATE LICENSING INTO ITS OPERATIONS, INCLUDING THE MANAGEMENT OF THE
EXISTING TELCORDIA LICENSES. THESE RISK FACTORS ARE DESCRIBED FROM TIME TO TIME
IN VALENCE'S SEC REPORTS, INCLUDING ON FORM 10-K FOR THE YEAR ENDING MARCH 31,
2000 AND ON FORM L0-Q FOR THE QUARTER ENDED SEPTEMBER 30, 2000 TO WHICH READERS
ARE REFERRED.
