Phostech Continues Operations Despite Negative Judgement of the Canadian Federal Court of Appeal

ST-BRUNO, QUEBEC — (Marketwire) — 08/18/11 — Despite a decision delivered on August 17th 2011 by the Canadian Federal Court of Appeal that a process used by Phostech Lithium at its plant of St-Bruno to manufacture the P1 grade of lithium iron phosphate (LFP), Canada, violated a patent of Valence Technology Inc. there is no significant impact on the business of Phostech Lithium.As already released on July 27th 2011, Phostech is about to finalize the production capacity expansion for its new