Valence and Tyco Enter Telecomm Agreement

June 15, 2004 by Jeff Shepard

Valence Technology Inc. (Austin, TX), a leader in the development and commercialization of Saphion™ technology and lithium-ion polymer rechargeable batteries, announced that is has signed an agreement granting Tyco Electronics Power Systems Inc., a leading worldwide supplier of telecommunications power, the exclusive right to resell Valence's K-Charge™ power system, a Saphion® technology-based, backup power solution, to Tyco Electronics' telecommunications and utility customers. The K-Charge system will be privately labeled for Tyco Electronics and marketed by Tyco Electronics under its company's brand, ELiTE RK™.

Under the terms of the agreement, Tyco Electronics will purchase privately labeled backup power systems from Valence for resale to telecommunications and utility customers worldwide. Valence has granted Tyco Electronics the exclusive right to resell the K-Charge power system in the utility and telecommunications markets for a period of three years. Tyco Electronics' obligation under the agreement is conditioned upon the product meeting specified acceptance criteria, and Tyco Electronics' right to exclusivity is contingent upon Tyco Electronics achieving specified quarterly volume targets.