Innovative Business Model is Speeding the Introduction of Electric Delivery Vehicles and Buses in Europe
AUSTIN, Texas, May 30, 2012 — Valence Technology, Inc. (Nasdaq:VLNC), a leading U.S.-based global manufacturer of advanced energy storage solutions, announced today that it has signed an extended supply agreement with French based PVI, a market leader in electric industrial vehicles. The recently updated supply agreement, combined with an innovative partnership begun in 2008, is facilitating an increased adoption of electric fleet vehicles throughout Europe. Since launching the program four years ago, more than 120 electric commercial vehicles, including electric trucks and buses built by PVI and powered by Valence lithium phosphate battery systems, are in operation today in several European countries. In addition to the battery systems, Valence has provided a broad range of engineering support to PVI.
“Valence’s long association with PVI is proving successful, due to PVI’s strategy of producing both PVI branded vehicles as well as vehicles for customers such as major truck and bus manufacturers. PVI is developing and introducing advanced commercial vehicles within Europe and we believe this agreement solidifies the value that PVI places on Valence’s battery chemistry and application engineering support,” said Robert L. Kanode, Valence president and chief executive officer.
“PVI’s association with Valence Technology was initiated over four years ago and their advanced battery systems have been invaluable as we introduce all electric vehicles in Europe. Most importantly, the reliability and safety tests we have conducted on Valence equipped vehicles have complied with all expectations for both PVI and also our customers,” stated Michel Bouton, Chief Executive Officer of PVI.
PVI manufactures electric powertrains assembled in various vehicles such as the OREOS all-electric 22 and 42 places buses, a 26-ton all-electric municipal refuse collection truck, as well as an all-electric version of a 3.5-ton LCV marketed by Renault Trucks. The OREOS minibuses and midibuses are deployed throughout France, including such high profile locations such as Paris with RATP, the Parisian Transport Authority. In addition, the 26-ton Refuse Collection truck is enjoying wide acceptance in municipalities through France. The LCV offer also serves as a municipal service vehicle as well as an urban beverage or logistics delivery vehicle. The LCV range is currently sold and serviced through PVI’s Customer and Partner network, Renault Trucks. Each vehicle is powered by Valence’s U-Charge® battery packs.
The OREOS electric buses are environmentally-friendly, quiet, and offer an average range of up to 93 miles without intermediary recharging. The OREOS electric buses enjoy a top speed in excess of 43 miles per hour, while also reducing atmospheric pollution by more than 100 tons of CO2 per year.
The electric power train unit used on the OREOS features all of the latest technological innovations designed and produced by PVI: an electronic control module for greater transmission efficiency and optimal electrical energy regeneration upon deceleration and breaking; and a built-in robotic gear box that provides cutting edge acceleration and gear-change performances on a par with those in the best conventional vehicles. The PVI technology also makes the vehicle exceptionally comfortable and safe to drive on slopes, thanks to the standard in-built release restraint system.
The 26-ton zero emission Refuse Collection truck is specifically designed for operating in town centers. These compact, highly maneuverable and totally silent trucks improve the quality of life for local citizens while providing long term savings against the rising fuel cost of diesel powered trucks.
According to Valence Technology’s vice president of sales and marketing R.J. Adleman, “PVI understands the industrial market’s expectations for the availability of new EV models. PVI is consistently able to design and commercialize vehicles which offer both high reliability and excellent performance in a much shorter time frame than traditional vehicle manufacturers. Their ability to introduce these electric vehicles in a timely manner while maintaining exacting quality standards provides them with a keen market advantage.”
About Valence Technology, Inc.
Valence Technology is a global leader in the development and manufacture of safe, long-life lithium iron magnesium phosphate advanced energy storage solutions and integrated command and control logic. Headquartered in Austin, Texas, Valence enables and powers some of the world’s most innovative and environmentally friendly applications, ranging from commercial electric vehicles to industrial and marine equipment. Valence Technology today offers a proven technology and manufacturing infrastructure that delivers ISO-certified products and processes that are protected by an extensive global patent portfolio. In addition to the corporate headquarters in Texas, Valence Technology has its Research & Development Center in Nevada, its Europe/Asia Pacific Sales office in Northern Ireland, manufacturing facilities in China, and global fulfillment centers in North America and Europe. Valence Technology is traded on the NASDAQ Capital Market under the ticker symbol “VLNC.” For more information, visit lithiumwerks.com.
Safe Harbor Statement
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 including our statements regarding our supply agreement with PVI, speeding the introduction of electric delivery vehicles and buses, increased adoption of electric fleet vehicles in Europe, our long association with PVI proving successful, PVI’s success in the marketplace, PVI’s products and business model, Valence’s battery chemistry and application engineering support and providing a keen market advantage. Actual results may vary substantially from these forward-looking statements as a result of a variety of factors including the market demand for our products and the products of our customer including PVI, our ability to manufacture our products as required by current or future customers including PVI, our ability to obtain required funding for our business, the outcome of any litigation regarding our intellectual property, our ability to effectively protect our intellectual property rights in Europe and other countries, our ability to further develop our intellectual property rights including our patent portfolio and the actual performance characteristics of our products. In addition, patents are geographically territorial and a decision on European patents generally affects the acts of making, using, selling and importing products utilizing such technology in Europe. Other risk factors that could affect our actual results are discussed in our periodic reports filed with the Securities and Exchange Commission, including our Annual Report on Form 10-K for the year ended March 31, 2011, and our Quarterly Reports on Form 10-Q, and 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.
PVI specializes in the development and small and medium batch production of industrial vehicles for urban transport and works. The company has more than 20 years of unique expertise and an indisputable reputation in the field of alternative energy and electric driveline technology in industrial vehicles: street-cleaning vehicles, delivery vehicles, commercial vehicles and buses. This experience is backed up with lessons learned from the daily operation of several hundred electric vehicles in France and Europe.
Through its GEPEBUS division, PVI currently markets OREOS 2X and 4X fully electric urban buses, with 22 and 49 places and equipped with 85 and 170 kWh batteries respectively. PVI also incorporates its electric driveline technology in a LCV chassis marketed by one of the European Leaders in industrial vehicle manufacturing. Together with SITA (SUEZ ENVIRONNEMENT), PVI has also developed a 26t fully electric chassis for urban waste collection; an initial experimental fleet of 34 vehicles will be in operation daily by the end of 2012.
Based on this technological and industrial acquired knowledge, PVI also offers European and global manufacturers and bodybuilder partners electric driveline solutions for industrial vehicles. This driveline technology can be integrated into any 3.5t and 26t industrial vehicles and benefit from the quality and reliability of PVI technology.