Tuesday, May 25, 2010 – After Market Close 

Green Baron Upgrade to “Stock Pick”

 (OTCBB: VSPC - .016 per share)

www.VIASPACE.com

Common Shares Outstanding / 1,185,977,817

Current Market Cap / $18.975 million

52-Week High / $.0339 per share

52-Week Low / $.0101 per share

Average Price / $.0152 (50-day) .0204 (200-day)

Average Volume / 1,566,046 (50-day) 2,022,278 (200-day)

 

VIASPACE Now Positioned for Hyper-growth through its Low-carbon, Renewable Energy Crop Giant King™ Grass that Can Be Used to Replace Coal In Electricity Generation; Also, a Potential Replacement for Food Crop-based Energy Sources like Corn to Produce Ethanol and Other Transportation Fuels

Strong Recent News Announcements:

May 25: VIASPACE Introduces First Green Energy Product - Green Log™ Fireplace Logs

May 18: VIASPACE Completes Acquisition of Inter-Pacific Arts and Restructures Short-term Debt into Long-term Debt

CEO Carl Kukkonen, "Confidential discussions are proceeding with potential partners/customers that need Giant King Grass to fuel their power plants…”

Company Now on More Solid Foundation; Green Baron Believes VSPC Stock Will Explode Higher as Company Secures Contracts and Additional Land to Grow Giant King™ Grass

Last year on March 18^th, 2009, The Green Baron Report issued its initial profile that focused on VIASPACE Inc. (BB: VSPC) as a new “Stock Alert” at .009 per share.  We stated that “due to its recent acquisition, the Company now operates three businesses that should contribute strongly to profitability over the coming years.”  We believed VSPC had bottomed, and in the first week after release of our profile VSPC went to as high as .014 per share.  Within a month, VSPC announced a partnership with Samsung and the stock hit a high of .0475 per share, a move of over 427% from our profile price of .009 per share.

On two other occasions in 2009, most recently October, we issued updated “Stock Alert” profiles on VIASPACE.  Each time, VSPC rallied higher on strong volume.  We have maintained interest in VSPC ever since, and have waited for the right time to consider an upgrade of the stock to a Green Baron “Stock Pick”.  Our delay up to now was our concern about resolution of a note due for nearly $5 million.  We also wanted to see marked progress on several other fronts.  Our concerns have now been met, and we believe stronger than ever over the future of VIASPACE Inc.

Today, The Green Baron Report has officially upgraded VIASPACE Inc. (BB: VSPC) from a “Stock Alert” to be our 87^th “Stock Pick” since inception.  Percentage gains will be compiled from the most recent trade possible prior to dissemination of this report to the subsequent high and will be monitored at www.thegreenbaron.com  through email updates to members.  Although we have very aggressive short and long term expectations for this stock, we suggest our members try to accumulate as close to the profile price as possible.

TRADER’S NOTES:  VIASPACE is a fully reporting company listed on the OTC Bulletin Board.  VSPC is a very actively traded stock represented by multiple market makers and a tight bid / offer spread of usually a tenth of a cent or less.  Volume continues to average a million and a half shares per day. 

Between September, 2009 and mid-January of 2010, VSPC traded primarily between .02 and .03 per share.  In mid-January, VSPC broke .02 per share and bottomed at .0101 in mid February.  Over the past several months, VSPC has been trading between .013 and .018.  Improving fundamentals, completion of the acquisition, restructuring short-term debt into long-term debt, and commercial launch of the Company’s first green-energy product all point to a break out above .02 per share any day.  For a chart of VSPC over the past 52-weeks, visit:

http://bigcharts.marketwatch.com/quickchart...

VIASPACE is a clean energy company providing products and technology for renewable and alternative energy that reduce or eliminate dependence on fossil and high-pollutant energy sources. Through its majority-owned subsidiary VIASPACE Green Energy Inc., the Company grows Giant King Grass as a low carbon fuel for electricity generating power plants, as a feedstock for bio methane production and cellulosic biofuels, and for other low-carbon, renewable energy products. VIASPACE also develops and markets fuel cartridges, products and technology for methanol fuel cells; and is developing security-related monitoring and detection technology and systems for military/defense and commercial applications.  The Company is also majority owner of Inter-Pacific Arts, a manufacturer and wholesaler of high quality framed art to U.S. retailers.

The Green Baron Report believes VIASPACE Inc. stock VSPC makes sense as an investment right now for the following primary reasons:

1.     Giant King Grass™ - VIASPACE’s proprietary Giant King™ Grass is becoming internationally recognized as a leading biomass candidate to replace coal for electricity generation and for production of nonfood cellulosic biofuels.  Its extremely high yield per acre makes Giant King Grass a cost effective alternative.

2.    Suitable for Power Plants - Customers and potential partners have tested Giant King Grass and found it suitable for their electricity generating power plants and processes.

3.    Large Nursery for Expansion - VIASPACE has invested in expanding its Giant King Grass nursery which is now large enough to support partners in large green-energy projects.

4.    Large Potential Contracts Anytime - The Company is in discussions and has signed confidentiality agreements with many potential international customers and partners.

5.    Green Log™ - The new Green Log fireplace and campfire log product, made with Giant King Grass in its own factory, has been performance-tested and shown to be a strong competitor to conventional brands, and at a lower price point should bring substantial near-term revenue and profits.

6.    Restructuring of Debt Reduces Short-term Risk - VIASPACE has completed the acquisition and converted its short-term debt into long-term debt. The seller has a long-term perspective and has joined the VIASPACE Board of Directors.

7.     Joint Ventures - VIASPACE is pursuing joint ventures with well-known and reliable customers that have a long-term need for Giant King Grass as a fuel or feedstock.  Using this focused approach, rather than simply selling seedlings to all parties, the Company expects to develop profitable business relationships that hold potential for continuing for decades.

8.    Low Share Price and Positive Technical Indicators - The VIASPACE market cap and share price are low and offer a substantial opportunity for growth.

 

VIASPACE Green Energy (VGE) – Renewable Energy 

The VIASPACE Green Energy majority-owned subsidiary grows and markets proprietary Giant King Grass, a renewable cellulosic non-food resource for: 1) producing low-carbon liquid biofuels for transportation, such as cellulosic ethanol, methanol and green gasoline (“grassoline”); and 2) a full or partial substitute for coal to reduce carbon emissions from electricity-generating power plants.  It can also be used to generate bio methane through anaerobic digestion, and Green Log firelogs made from Giant King Grass have just entered the US marketplace.

Giant King Grass is a perennial fast-growing plant that grows up to 13 feet (4 meters) tall and can be harvested several times a year in tropical and subtropical regions with yields up to 167 metric tons (wet) per acre per year. Giant King Grass has much higher yield than competing grasses such as switchgrass and miscanthus.  This means that a given piece of land can produce more fuel at lower cost than the competitors.

VIASPACE Green Energy has leased 250 acres of Giant King Grass under cultivation on its plantation near Guangzhou in Guangdong province in southern China. Initial harvests have been used as nursery stock to provide seedlings, which have supported expansion of planted acreage. This expanded nursery is capable of providing seedlings that could develop more than 10,000 acres of Giant King Grass fields. 

 

From the initial harvests, samples have been sent to potential electric power plant customers and partners, and these harvests have provided the Giant King Grass for the new Green Log™ firelog product. .

Multiple independent analyses conducted by potential customers show that Giant King Grass has excellent energy content of 7,900 BTU per bone-dry pound and also has superior methane production in bio-digesters of more than 1.6 standard cubic feet of methane per pound of fresh grass. Its physical properties are similar to corn straw (stover), and Giant King Grass is suitable to be burned directly in 100% biomass power plants and also made into energy pellets that can be co-fired with coal in existing coal-fired power plants.  Giant King Grass can also be used to produce second-generation cellulosic biofuels, which avoids the use of food crops such as corn as feedstock.

Giant King Grass is a renewable and environmentally friendly alternative to fossil fuels. Burning grass or a biofuel made from grass releases carbon dioxide into the atmosphere. However the next crop of grass absorbs the carbon dioxide during its growth cycle; therefore the entire process is carbon neutral over the 60 -90 day growing cycle. Although carbon dioxide can be released by trucks that transport the grass used to make the biofuel.  If these are carefully managed, Giant King Grass is a very low-carbon fuel source.

Giant King Grass is also a potential replacement for food crop-based energy sources like corn or soy. The US Department of Agriculture estimated that one third of the US corn crop in 2008 was dedicated to ethanol production. The World Bank is concerned that using biofuels made from food is increasing food prices and causing world hunger. Since grass is a non-food crop and can be grown on marginally-fertile land, production of biofuels made from grass should have much less impact on food crops and therefore food prices. Several countries including China have banned biofuels made from food crops.

Transportation applications such as automobiles and trucks require liquid fuels which are easy to store on the vehicle. Giant King Grass can be made into liquid biofuels by gasification or by advanced enzyme fermentation. Biofuels made from nonfood crops are called cellulosic biofuels because the cellulose content is used rather than the sugar content in food crops. Liquid biofuels made from grass have been termed “GRASSOLINE”.  Giant King Grass is a feedstock for cellulosic biofuels.

Giant King Grass is also considered a viable biomass alternative to coal for firing electrical energy generating plants. Many existing coal-fired power plants can be straightforwardly modified to accept up to 30% grass as the feedstock in place of coal in a process referred to as co-firing. This would reduce the carbon emissions of the power plant immediately and is the most near-term solution to beginning to clean up existing and expensive coal-fired power plants. Co-firing biomass with coal is a proven approach and available now, whereas other clean coal technologies such as carbon sequestration are years away and very expensive.

A growing trend is toward simply burning 100% biomass in power plants that have been specially designed with boilers to use biomass feedstock--whether agricultural waste or dedicated crops like grass--instead of coal or fossil fuel. Dedicated biomass power plants are being encouraged and can receive substantial government subsidies in Europe, China, India and other countries. More than 20 dedicated biomass power plants have built in China over the last three years. Coal power plants in the US are being converted to biomass. These biomass power plants use agricultural waste such as corn straw, wheat straw, cotton waste and wood chips as their fuel today. However, there are major problems using agricultural waste, because the fuel supply type and quantity changes with the seasons; it is not consistent in quality, and the supply sources are not reliable. The price of agricultural waste has tripled in China and India because of increasing demand. Biomass power plants prefer a dedicated energy crop such as Giant King Grass to meet at least one half of their fuel needs and provide a consistent and reliable source at a long term negotiated price. New biomass power plant projects are having difficulty obtaining financing if the do not have long term fuel supply contracts.

A single modest 30 megawatt grass-powered electricity generating plant would require approximately 600 tons of grass every day to meet 100% of its fuel requirements. In a tropical or subtropical area this could be produced on approximately 3500 acres of land. In China, 30 megawatts of electricity can supply the electricity needs for approximately 200,000 households.

VIASPACE is pursuing joint ventures with well-known and reliable customers that have a long-term need for Giant King Grass as a fuel or feedstock.  Using this focused approach, rather than simply selling seedlings to all parties, the Company expects to develop profitable business relationships that hold potential for continuing for decades.

 VIASPACE is pursuing business opportunities in China, Indonesia, Thailand, Singapore South America, India, Africa and other regions. The trend to cellulosic low-carbon biofuels is attracting strong political support. The Obama administration is calling for a national low-carbon fuel standard, and recent landmark legislation in California to reduce carbon emissions "would boost the use of biofuels" by "spurring investment in cellulosic low-carbon fuels made from switch grass and other non-food plants.

Direct Methanol Fuel Cell Corp. (DMFCC) – Alternative Energy

Direct Methanol Fuel Cell Corporation develops and manufactures disposable methanol fuel cartridges that provide the energy source for fuel cell powered notebook computers, mobile phones, military equipment and other applications being developed by electronics OEMs, such as Samsung and Toshiba, and other companies.

Fuel cells are electrochemical devices that efficiently and cleanly convert a fuel, such as methanol, into electricity without burning. The fuel cell is permanently built into a notebook computer in the space where the battery is now. A small disposable fuel cartridge is inserted into the computer which provides the fuel for the fuel cell.

The advantages of a fuel cell are longer-lasting power compared to a rechargeable battery, instantaneous recharging by simply replacing the disposable fuel cartridge, non-toxic disposal, and light weight. As a result, methanol fuel cells are being developed by many companies as a new, clean alternative power source for portable electronic devices. Fuel cells offer freedom from the electrical grid which is important for many business and professional applications.

Fuel cell powered notebook computers and mobile phones are projected to use approximately 100 disposable fuel cartridges during their workable lives and represent a recurring and potentially very large revenue stream. It has been projected that up to 22% of notebook computers and 2.5% of mobile phones will be powered by fuel cells in the future, which would result in demand for more than three billion cartridges per year.

Methanol fuel cells and fuel cartridges are efficient, clean and safe and have been approved to be carried on airplanes by the US Department of Transportation and The International Civil Aviation Organization. These approvals are expected to encourage faster and more widespread adoption of fuel cells for portable electronic devices.

Business Partners

Direct Methanol Fuel Cell Corporation and its partners are working to develop the worldwide infrastructure to manufacture, fill and distribute disposable methanol fuel cartridges. This global capability is needed to support widespread adoption of fuel cell powered devices. DMFCC’s cartridge manufacturing partners are experienced and trusted suppliers to a wide range of industries including electronics OEMs.

DMFCC develops custom-designed cartridges for partners’ varying applications while ensuring the finished products meet technical and safety requirements and are available at an attractive price.

DMFCC is partnered with Samsung and other companies engaged in fuel cell development and applications. DMFCC supports the ongoing needs of their customers—including commercial introduction of liquid fuel cells as an economical and environmentally friendly alternative to traditional batteries.

Ionfinity – Monitoring and Detection Systems

Ionfinity is developing next-generation sensors based on new mass spectrometry (MS) technology that can detect and analyze extremely small quantities (or residues) of chemicals and hazardous materials such as explosives, toxic gases, chemical/biological weapons and drugs.

With the incorporation of Ionfinity miniaturization technology, new portable monitoring devices and detection systems are being developed for homeland security, defense, biomedical, industrial process control, agricultural and environmental monitoring and safety applications.

Product Development

Ionfinity is developing a compact, stand-alone chemical-sensing device consisting of: 1) a new and powerful detector called a Differential Mobility Spectrometer; 2) a non-radioactive ionization method that does not fragment or multiply-ionize sampled specimens; and 3) a micro-gas chromatograph for confirmation and enhanced detection capability. The device will detect chemicals and materials of interest at ppt (parts-per-trillion) to ppb (parts-per-billion) levels after 6 seconds. The sensor is self contained with respect to power and communications.

Research & Development and Technology Partners

Ionfinity is involved in ongoing collaborations with California Institute of Technology (Caltech), National Aeronautical and Space Administration (NASA), and NASA's Jet Propulsion Laboratory (JPL). Ionfinity is also involved in partnerships with Sionex Corp. and Imaginative Technologies LLC.

Recent Key Announcements

Tuesday, May 25, 2010 – VIASPACE Introduces First Green Energy Product - Green Log, a New Low-Carbon Fire Log Manufactured from Giant King Grass - IRVINE, Calif. - VIASPACE Inc. (OTC Bulletin Board: VSPC), a clean energy company growing Giant King™ Grass as a low-carbon, renewable energy crop, launched its first renewable energy/biomass product for sale: Green Log™ fireplace and campfire logs manufactured from Giant King Grass.

Green Logs were introduced on May 4-6, 2010, at the National Hardware Show in Las Vegas, which was attended by buyers from hardware stores, big box stores, grocery stores, drugstore chains and other retailers. The U.S. distributor of Green Logs is Georgia-based JJ International, Inc., since 1988 a nationwide supplier of indoor and outdoor products for the home.

VIASPACE Chief Executive Dr. Carl Kukkonen stated: "We believe Green Logs are the first manufactured fire logs to be produced solely from a dedicated renewable energy crop. Green Logs have a zero net-carbon footprint, completely avoid the use of petroleum products which also produce net carbon emissions, and burn up to 66% longer compared to conventional manufactured logs currently being sold.  Since VIASPACE is vertically integrated-- both growing Giant King Grass and manufacturing Green Logs-- we can offer Green Logs as a superior product and at a lower price than competitors.”

Green Logs are VIASPACE’s first product for the renewable energy market and, according to Kukkonen, exemplify the Company’s ability to convert the vast commercial potential of Giant King Grass into beneficial, competitive biomass products.

According to Kukkonen, manufactured fire logs represent a $400 million annual market in North America. With more than 100 million logs—made primarily of wood chips and sawdust—burned each year, he sees a substantial opportunity for Green Logs, which offer the most environmentally friendly manufactured log available. Green Logs also generate greater heat output than conventional logs, and its non-chemical, natural campfire aroma makes it an even more appealing alternative.

Green Logs are manufactured at the Company’s grass plantation and processing facility in China’s Guangdong province. The factory was completed and manufacturing equipment was installed in April. Kukkonen said that Green Log samples have been provided to potential customers with good response.  Orders are being taken with deliveries starting in August. 

Kukkonen added that entering the commercialization stage for Giant King Grass is a timely step for VIASPACE and its majority-owned subsidiary, VIASPACE Green Energy, Inc. (VGE), under which the Company’s renewable energy business is managed.  “Green Logs represent a new retail marketplace for Giant King Grass”, Kukkonen stated.  “Green Logs and other uses of Giant King Grass to provide heat complement our strategy to use Giant King Grass to generate clean electricity from biomass power plants and as feedstock for liquid biofuels known as grassoline to power cars and trucks.”

Further information on Green Logs including pictures and specifications is available on the bottom of the homepage of the VIASPACE website www.VIASPACE.com.

Green Log distributor JJ International, Inc. is located at 131 Bells Ferry Lane, Marietta, Georgia, 30066. Telephone: 1-800-999-6036.  Email: sales@jjinternationalinc.com.  JJ International sells only to retailers and not to the general public. 

Tuesday, May 18, 2010 – VIASPACE Completes Acquisition of Inter-Pacific Arts - Former Controlling Shareholder of Inter-Pacific Arts Joins VIASPACE Board of Directors - IRVINE, Calif., (PRNewswire-FirstCall) - VIASPACE Inc. (OTC Bulletin Board: VSPC), a clean energy company growing Giant King™ Grass as a low-carbon, renewable energy crop, today announced the completion of the acquisition of Inter-Pacific Arts (IPA), a subsidiary of VIASPACE Green Energy (VGE). The acquisition was approved by the VIASPACE board of directors at a meeting on May 13, 2010, and documents were signed on May 14, 2010.

VIASPACE Chief Executive Dr. Carl Kukkonen stated: "We are pleased to bring the acquisition to completion. With the acquisition behind us, we can increase focus on expanding the Giant King Grass business as well as IPA's framed art business. I am also looking forward to providing updates on our renewable energy business, including progress with Giant King Grass plantings, crop status, our first energy product for the biomass market, and the status of our discussions and negotiations with potential customers."

Under terms of the acquisition, which involved an exchange of shares, VIASPACE issued 241,667,000 shares of newly issued common stock of VIASPACE to Mr. Sung Hsien Chang, the former controlling shareholder of IPA and a VGE shareholder; his family members; and a company controlled by Chang. In exchange, VIASPACE received VGE common stock and now holds 6,506,000 shares, or 75.6%, of VGE's outstanding common stock. Chang controls 4.7% of VGE's outstanding common stock, with the remaining VGE stock held by unaffiliated shareholders. Chang also received one share of VIASPACE Series A preferred stock that gives him 50.1% of common stock voting rights subject to cancellation when certain conditions are met.

Also under terms of the acquisition, Chang has been appointed to the board of directors of VIASPACE and may designate up to two appointees to the board. As board member Mr. Amjad Abdallat resigned from the board effective May 14, 2010, the board currently remains at five directors, of which three are independent, outside directors.

Included in the acquisition terms, the $4.8 million plus interest note, issued in 2008 by VIASPACE to Chang, has been converted to a $5.3 million five-year note at 6% annual interest payable in five equal annual payments. The new principal amount of $5.3 million represents the original $4.8 million plus interest accrued through May 14, 2010.

VIASPACE will continue to manage its renewable energy and IPA operations through VGE. Dr. Carl Kukkonen will continue to serve as chief executive of VIASPACE and VGE, Mr. Stephen Muzi will continue to serve as chief financial officer of both companies, and Chang will continue as president of VGE.

The parties entered into additional agreements addressing security and pledges for the promissory note, registration rights, employment agreements and other items. Details of these agreements, the terms mentioned in this release, and other information are included in the Company's Form 8-K filed on May 18, 2010, with the U.S. Securities and Exchange Commission.

Monday, May 17, 2010 - VIASPACE Reports Financial Results for First-Quarter 2010 - Revenues Rise, Operating Expenses Decline, Net Loss Narrows as Company Sets Foundation for Growth of Renewable Energy Business - VIASPACE Inc. announced financial results for the first quarter ended March 31, 2010. 

Total revenue for the quarter was $927,000 and included $757,000 from Inter-Pacific Arts (IPA) and$170,000 from U.S. military contracts for security products. Total revenue for first-quarter 2009 was $820,000 and included $591,000 from IPA,$174,000 from U.S. military contracts for security products, and $55,000 from a commercial fuel-cell contract with Samsung.

For the quarter, cost of revenues was $676,000, compared to $526,000 in first-quarter 2009; the increase due to higher volumes and manufacturing costs related to IPA. Gross profit for the quarter was $251,000, compared to gross profit of $294,000 for first-quarter 2009.

Total operating expenses for the quarter were $922,000, including $894,000 of selling, general and administrative (SG&A) expense and $28,000 for operations. SG&A included $289,000 in stock-based compensation. Total operating expenses for first-quarter 2009 were $1.075 million and included $1.07 million in SG&A and $9,000 for operations. SG&A in 2009 included $572,000 in stock-based compensation. Operating loss for the quarter was $671,000, compared to an operating loss of $781,000 in first-quarter 2009.

For first-quarter 2010 other income, net, was $51,000, compared to other expense, net, of $125,000 for first-quarter 2009.

Net loss for the quarter was $630,000 compared to a net loss in first-quarter 2009 of $851,000. Net loss for first-quarter 2010 was less than $0.01 per share; net loss for first-quarter 2009 was less than $0.01 per share.

VIASPACE Chief Executive Dr. Carl Kukkonen commented: "First-quarter results reflect the ongoing contribution of IPA to revenues as well as cash flow to support the continuing development of our renewable energy business, including acreage expansion, Giant King Grass cultivation, and construction of our grass processing facility. In addition, our efforts to control operating expenses in certain areas are helping to offset the expected increases in expenses and capital investment related to our energy business. As a result, net loss narrowed from last year, and net cash used for operations also declined."

Monday, May 10, 2010 - VIASPACE Presents Giant King Grass at International BIOMASS Conference in Minneapolis - VIASPACE Inc., a clean energy company growing Giant King™ Grass as a low-carbon, renewable energy crop, announced that Chief Executive Dr. Carl Kukkonen made an invited presentation at the International BIOMASS Conference and Expo held May 4-6 in Minneapolis, Minnesota. More than 2000 attendees and 275 exhibitors participated in the Conference and Expo.

Kukkonen's presentation at the conference was entitled "Giant King Grass: Energy Crop for Direct Combustion in Power Plants, Biogas Production and Cellulosic Biofuels". The presentation is available to download on the lower right-hand side of the homepage of the VIASPACE website www.VIASPACE.com.

"The extremely high yield of Giant King Grass and its multiple different energy applications generated a lot of interest," stated Kukkonen. "Because of its high yield, it can meet the cost targets for biomass power plants, energy pellets and as a feedstock for biogas production and liquid cellulosic biofuels."

In addition to the presentation, VIASPACE held a series of business and technical meetings with the global attendees to discuss new opportunities in the southern US and Hawaii, Africa, Israel, and Turkey, and to follow up on project discussions in Indonesia and India.

Monday, April 26, 2010 - VIASPACE Provides Update on Giant King Grass - VIASPACE Inc. today provided an update on its business of growing Giant King Grass as a low-carbon, renewable energy crop.

Giant King Grass is being cultivated on Company-leased land near Guangzhou in Guangdong province in southern China. Initial harvests have been used as nursery stock to provide seedlings, which have supported expansion of planted acreage to about 250 acres currently. This expanded nursery is capable of providing seedlings that could develop more than 10,000 acres of Giant King Grass fields.

From the initial harvests, samples have been sent to potential customers and partners. Samples have also been used to support the Company's product development, and its first Giant King Grass product is expected to be announced shortly.

VIASPACE Chief Executive Dr. Carl Kukkonen stated: "In China, we are directly involved in and control the entire process from land acquisition to manufacturing. We lease the land, hire farmers and other labor, harvest the crops, and manufacture the final product in our new, company-owned factory."

"Considering the rising trend to renewable, low-carbon energy, we are negotiating to obtain more land in China, and we are also seeking to quickly expand outside of China," Kukkonen continued. "Confidential discussions are proceeding with potential partners/customers that need Giant King Grass to fuel their power plants, some of which have land available for setting up Giant King Grass operations in their respective regions. As a result, we are in discussions and meeting with companies from the U.S., Europe, India, Indonesia, Thailand, Singapore, Malaysia and other countries."

Kukkonen said that multiple independent analyses conducted by potential customers show that Giant King Grass has excellent energy content of 7,900 BTU per bone-dry pound and also has superior methane production in bio-digesters of more than 1.6 standard cubic feet of methane per pound of fresh grass. Its physical properties are similar to corn straw (stover), and Giant King Grass is suitable to be burned directly in biomass power plants and made into energy pellets that can be co-fired with coal in existing coal-fired power plants. He also said that Giant King Grass can also be used to produce second-generation cellulosic biofuels that do not use food crops such as corn for their feedstock.

Kukkonen remarked that Giant King Grass is an extremely high yielding perennial grass in tropical and subtropical areas. Its yield is much higher than other energy crops, and it can be harvested in the first year, whereas other crops such as miscanthus or Jatropha may take two to four years before harvest. Being a perennial species, Giant King Grass regrows after each harvest and will do so for many years.

"VIASPACE is pursuing joint ventures with well-known and reliable customers that have a long-term need for Giant King Grass as a fuel or feedstock," Kukkonen added. "Using this focused approach, rather than simply selling seedlings to all parties, the Company expects to develop profitable business relationships that hold potential to continue for decades."

Thursday, April 8 2010 - VIASPACE Subsidiary Ionfinity to Receive Additional $786,000 under U.S. Navy Contract - Navy Exercises Phase II Contract Option -

VIASPACE Inc., an alternative energy company with subsidiary operations in security technology, announced that its security technology subsidiary, Ionfinity LLC, will receive an additional $786,000 in funding from the U.S. Navy under a previously awarded contract.

The Company received notice that the U.S. Navy exercised an option to provide the funding for an additional eighteen months of development work. In October 2008, Ionfinity was awarded a competitively selected Phase II contract for eighteen months and received an initial amount of $492,000. To date, Ionfinity has been awarded $1,278,000 under this U.S. Navy contract.

Ionfinity Chief Executive Officer James Weiss said, "We believe the new sensor we are building will substantially raise the standard for future chemical detection and analysis and at the same time make the sensor's operation and performance much more convenient and timely."

Weiss added that while Ionfinity's new sensor technology has direct application in the security industry, it is also expected to have commercial applications in environmental monitoring, agriculture and medicine.

Through its subsidiary Ionfinity LLC, VIASPACE is developing a sensitive miniaturized "sniffer" in a joint collaboration with NASA's Jet Propulsion Laboratory, Caltech, Sionex and Imaginative Technologies. The development project, entitled "Miniature Electronic Sniffer for Navy Vertical Take off Unmanned Aerial Vehicles (VTUAVs)" was awarded by the U.S. Navy's Small Business Technology Transfer (STTR) Program.

The sensor is a compact stand-alone chemical detection device consisting of: 1) a new and powerful detector called a Differential Mobility Spectrometer; 2) a non-radioactive ionization method that does not fragment or multiply-ionize sampled specimens; and 3) a micro-gas chromatograph for confirmation and enhanced detection capability. The device will detect chemicals and materials of interest at parts-per-billion (ppb) levels within 5 seconds. The hand-held sensor is self contained with respect to power and communications.

Tuesday, April 6, 2010 - VIASPACE Sees Major Market for Giant King Grass in India - CEO Holds Business Meetings and Presents at World Renewable Energy Technology Congress in New Delhi - VIASPACE Inc., sees a large market opportunity for its Giant King Grass in India, where increasing use of agricultural waste and rising prices are causing biomass electrical energy providers to seek other less costly and more reliable sources of fuel.

Chief Executive Dr. Carl Kukkonen recently returned from business meetings with eight biomass energy companies in India. He also made an invited presentation and served on two special interest panels at the World Renewable Energy Technology Congress held March 18-20 at the Le Meridien Hotel in New Delhi.

Kukkonen remarked that biomass power plants in India use agricultural waste such as rice husks, mustard plants, corn straw, cotton straw and many other crop leftovers as fuel. However, due to increasing demand for these materials, agricultural waste is becoming scarce, and prices are rising dramatically. In addition, agricultural waste is seasonal, and its quality as a fuel source varies depending on what crop is available. As a result, power plant owners are aggressively seeking alternative, reliable and lower-cost sources of renewable biomass for fuel.

"I believe this condition has created an attractive opportunity for Giant King Grass to meet the needs of this large market for renewable energy," Kukkonen stated. "The fuel quality of Giant King Grass is superior to current materials being used. The climate in India is also great for growing Giant King Grass, which can be planted and harvested continuously. This 'just-in-time' advantage means simpler fuel logistics and less biomass storage. And based on our experience with cultivating Giant King Grass, it can be grown in India at a lower price than they currently pay for agricultural waste."

According to Kukkonen, one of the Indian companies has already visited the Company's grass operation in China, and confidentiality agreements have been signed with several companies in order to proceed with further steps in business discussions.

India plans to very significantly raise its total output of electric energy. India's population of 1.2 billion people is four times that of the United States; however, India uses only about one-tenth the electricity per capita compared to the United States. An Indian official at the Congress stated that the country's goal is to initially provide electricity to its 40% of poor citizens, and then raise the country's electricity use to near Western country levels, which would require a 40-fold increase in electricity output. However, to achieve that goal using fossil fuels, India's fuel consumption and carbon emissions would be 40 times higher than it is today and generate four times the carbon emissions of the United States. India plans to use large amounts of renewable and low carbon energy to meet its electricity goals.

To promote the use of renewable, low-carbon energy, India provides guaranteed subsidies for electricity generated from biomass and other renewable, low carbon emitting sources. The country already has many direct combustion biomass power plants in the size of 5 to 20 megawatts, and biogas power plants of about 1 to 2 MW each. In addition to the government subsidies, these power plants earn carbon credits which add a substantial amount to their profitability.

Kukkonen's presentation at the Congress was entitled "Giant King Grass for Biomass Electricity Generation, Biogas Production and Cellulosic Biofuels". The presentation provides an update on Giant King Grass and is available to download on the lower right-hand side of the homepage of the VIASPACE website www.VIASPACE.com.

The Congress was sponsored by the Oil and Natural Gas Corporation Ltd. (ONGC), the Indian national oil and gas Company, and by other companies. There were more than 500 attendees from 26 countries.

Management Team

Dr. Carl Kukkonen: CEO, Chairman, Co-Founder – From its founding in 1998, Dr. Carl Kukkonen has led the VIASPACE team, serving as CEO of ViaSpace Technologies LLC, the predecessor of VIASPACE Inc., and serving as CEO and Chairman today.  ViaSpace Technologies incubated several companies based on technologies developed at the NASA Jet Propulsion Laboratory and patents and software licensed from Caltech.

Prior to founding VIASPACE, Dr. Kukkonen was a Caltech employee serving as Director of the Center for Space Microelectronics Technology (CSMT) and Manager of Supercomputing at the NASA Jet Propulsion Laboratory.  At JPL from 1984 to 1998, he managed several technologies and technical subsidiaries.  Dr. Kukkonen established and grew the CSMT into a 250-person operation with a $70M annual budget.

Stephen J. Muzi: CFO and Treasurer – Prior to joining ViaSpace Technologies LLC as Controller in 2000, Mr. Muzi was a Corporate Controller at Southwest Water Company from 1988 to 2000, a NASDAQ company with revenues in excess of $100 million.  In this position, he was responsible for all SEC reporting requirements as well as Board of Director Reporting.  He managed the company’s line of credit banking relationships, risk management program, internal audit program, and income tax requirements.  He also made presentations to investment brokers and analysts.

From 1985 to 1987 Mr. Muzi was a senior auditor with BDO Seidman, a national CPA firm. Mr. Muzi received his BS degree from Rochester Institute of Technology and an MBA from the State University of New York at Buffalo.  He is a Certified Public Accountant.

Green Baron Conclusion

VIASPACE Inc. is better positioned than ever to profit from its proprietary Giant King Grass as a renewable and environmentally friendly alternative to fossil fuels.  The Company has aggressively expanded its nursery to support the anticipated growth and rising demand for green energy.  VIASPACE is actively seeking more land suitable to expand production, and has signed confidentiality agreements with many potential clients and partners that set the stage for large scale contracts.

We believe the acquisition of Inter-Pacific Arts and the commercial launch of Green Logs™ should generate enough cash flow and profits to soon cover the costs of advancing Giant King Grass into large scale production.  And the conversion of short-term debt into long-term debt under fair-market terms has removed much of the financial risk in VIASPACE, particularly over the near to medium term.

Electricity generating power plants have found that Giant King Grass is suitable for their green energy needs. The market is massive, the demand for biomass is rising worldwide, and we believe VIASPACE has the resources and capabilities to grow product in many countries throughout the world and deliver on contracts that will be awarded this year. 

With this outlook not yet reflected in its stock price, the market cap and share value of VSPC is extremely attractive at this level, and we are confident that shareholders will be rewarded soon through accumulation now.  The Green Baron Report believes VSPC will more than double over the near-term even in today’s challenging economic environment and general stock market conditions. The need for energy continues to grow worldwide, and demand for green energy alternatives such as Giant King Grass is beginning to accelerate. With any significant new contracts, we should see VSPC go much higher.

Investor Contact

Dr. Jan Vandersande, Director of Communications

Phone (800)517-8050

Email: IR@VIASPACE .com