Viaspace CEO Reviews 2008 Financial Results

VIASPACE Inc. (OTC Bulletin Board: VSPC), an alternative energy company providing products and technology for renewable and clean energy, said its chief executive, Dr. Carl Kukkonen, reviewed the Company’s 2008 financial performance and outlook for its alternative energy business during an interview yesterday on Wall St. Network’s “The 3 Minute Press Show.” The interview is available here.

On March 31, 2009, VIASPACE filed with the U.S. Securities and Exchange Commission Annual Report on Form 10-K for the year ended December 31, 2008.

VIASPACE’s renewable energy business is based on a worldwide license to grow and cultivate Giant King Grass as a feedstock for cellulosic biofuels–such as ethanol, methanol and green gasoline–that do not rely on food crops such as corn for their production.

Giant King Grass is a fast-growing perennial plant that can be harvested four times a year, and in October 2008 the Company planted its first crop of 1.2 million Giant King Grass seedlings in China’s Guangdong Province. The seedlings survived an unusually cold winter and are now 2 meter-tall plants. VIASPACE expects to have 300 acres growing by September, with additional acreage and plantings under consideration in China and other countries.

Kukkonen commented on an important economic advantage of cellulosic biofuels: “In 2008, the World Bank said that global demand for corn to produce biofuels was causing a surge in corn prices that in turn was driving up food prices. This trend was threatening to push 100 million people into deeper poverty. World Bank President Robert Zoelick indicated that there is a second stage of biofuels that is under development with cellulosic materials…that may be a way of avoiding some of the energy costs but without using current food production.”

VIASPACE’s clean energy business includes the design and manufacture of disposable fuel cartridges, the energy source for fuel cells that are expected to power electronic devices such as notebook computers and cell phones manufactured and sold by companies like Samsung and Toshiba. A fuel cell powered notebook computer is projected to use approximately 100 fuel cartridges during its lifetime. VIASPACE subsidiary Direct Methanol Fuel Cell Corporation is a cartridge partner with Samsung and other companies, and recently completed the second supply contract with Samsung.

On October 21, 2008, VIASPACE acquired a profitable non-core business that for 2008 generated $6.6 million in revenue and $1.2 million in profit. Including the effects of the acquisition since October 21, for full-year 2008 VIASPACE reported revenues of $1.4 million, positive cash flow from operations for the full year 2008, and had $2.66 million in cash and equivalents at year end.

Kukkonen added: “While our core strategy is to develop large and recurring revenue streams from grass and fuel cartridge sales, the acquisition serves more-immediate purposes, one of which is to support the recently announced expansion of the grass business. Based on that and planned future expansion, and ongoing revenue from our Direct Methanol Fuel Cell Corporation subsidiary, we expect significant financial improvement in 2009, compared to 2008. In addition, we have closed some unprofitable product lines, reduced debt and improved our balance sheet.”

About VIASPACE Inc.

VIASPACE is an alternative energy company providing products and technology for renewable and clean energy that reduce or eliminate dependence on fossil and high-risk-pollutant energy sources. The Company provides raw material for cellulosic biofuels and develops and markets fuel cell cartridges, products and technology. VIASPACE subsidiary Direct Methanol Fuel Cell Corporation owns a portfolio of fuel cell patents licensed from Pasadena-based California Institute of Technology (Caltech), which manages NASA’s Jet Propulsion Laboratory, where the direct methanol fuel cell was invented.