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VIASPACE Plants Biofuel & Animal Feed Grass and Signs Land Lease in China
Date:12/10/2008

PASADENA, Calif., Dec. 10 /PRNewswire-FirstCall/ -- VIASPACE Inc. (OTC Bulletin Board: VSPC) announced today that it has planted 1.2 million seedlings of its proprietary fast-growing China Giant King Grass near the IPA factory in Guangdong province in China. Giant King Grass is a natural hybrid perennial grass which is propagated from seedlings rather than seeds. In tropical and subtropical areas such as Southern China, it can yield four crops per year and up to 156 tons of grass per acre per year.

VIASPACE also signed a 15 year lease on agricultural land in Heyuan city in Guangdong Province, China. The lease was signed last week in a ceremony with government officials. The lease is for 100 acres, with an option for an additional 1400 acres in 2009. VIASPACE plans to plant Giant King Grass seedlings in Heyuan early next year.

China Giant King Grass was originally developed as an animal feed for cows, pigs, sheep, goats, rabbits, turkeys and fish. Animal feed provides an immediate market for the grass which is also being grown as a feedstock for production of cellulosic ethanol, methanol, biocrude and green gasoline. VIASPACE expects to generate $20 million in revenue in the next two years including the sale of grass for livestock feed and alternative fuels. Agriculture and alternative energy are two of the national priorities of China.

Dr. Carl Kukkonen, CEO of VIASPACE, commented: "VIASPACE is focusing on green energy with its fuel cartridges for fuel cell powered notebook computers and mobile phones, and on China Giant King Grass as a carbon neutral alternative fuel feedstock. A major advantage of the grass is that it has an immediate market as an animal feed. We project that we can generate significant revenue and profit in the in the next year or two by selling the grass as animal feed. In parallel, we are building capability to grow
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SOURCE VIASPACE Inc.
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