Valence Technology Victorious in Canadian Patent Infringement Lawsuit

Valence Technology, Inc. VLNC prevailed in a patent infringement lawsuit regarding the Company's carbothermal reduction technology. The lawsuit was filed against Phostech Lithium, Inc. on January 31, 2007. Per the judgment, Justice Johanne Gauthier ruled in Valence's favor, finding infringement of the Valence primary carbothermal reduction Canadian patent, number 2,395,115. Pursuant to the judgment, Valence is entitled to an injunction, an election of either an accounting of profits or damages, reasonable compensation and costs. The determination of damages and costs will be dealt with in a separate Court proceeding. Valence scientists developed the economical process of manufacturing lithium metal phosphates following their discovery of Valence's proprietary lithium iron magnesium phosphate cathode material. The process, referred to as Carbothermal Reduction (CTR), provides an efficient, cost effective, stable and scalable method of producing various lithium metal phosphates useful as cathode materials.