VIASPACE Press Release
VIASPACE Completes Acquisition of Inter-Pacific which adds $5 Million in Revenue
PASADENA, CA, October 28, 2008-VIASPACE Inc. (OTCBB: VSPC) today announced the acquisition of a majority interest in Inter-Pacific Arts Corp. (Inter Pacific),a company with ongoing profitable operations generating unaudited 2007 revenues of approximately $5 million, net income of $1.2 million, and $3 million in cash and equivalents. Inter-Pacific has a worldwide license to grow and sell an ultra-fast-growing hybrid grass to be used for production of biofuels and livestock feed in addition to its already profitable consumer products business. Inter-Pacific has initiated commercial farming of the high-yield grass in China where markets for both sustainable biofuels and animal feed are growing rapidly. VIASPACE intends to accelerate development of the biofuel and feed business, which will become a major revenue driver for the Inter-Pacific subsidiary.
With the acquisition, VIASPACE will gain a license for commercial farming and sale of China Giant King Grass, a new hybrid variety of high-yield grass that will be used as feedstock for biofuels including cellulosic ethanol, methanol, biocrude and green gasoline. The fast-growing perennial grass is also ideal for use as animal feed. It can grow up to twelve feet high in sixty days and yield four crops per year in subtropical climates. The high-yield grass business will enable VIASPACE to penetrate the global biofuels industry which generated $25.4 billion in 2007. According to Clean-Energy Trends 2008 published by Clean Edge, Inc., biofuels will reach $81.1 billion by 2017. The new venture will also provide access to the global animal feed market which Feed International reports has grown 14 percent annually for the last ten years.
VIASPACE CEO Dr. Carl Kukkonen states: "Inter-Pacific has begun developing the high-yield grass business in China where alternative energy and agriculture are top national priorities. There is an existing, profitable market for these products that should enable VIASPACE to generate revenue in China and other markets very quickly ".
Dr. Kukkonen continued: "The acquisition of Inter-Pacific opens up exciting growth opportunities for VIASPACE and creates multiple new revenue streams. By leveraging the profits from its established, revenue-positive consumer products line to fund rapid expansion of the grass venture we can develop a self-sustaining business with tremendous value for shareholders. With the projected growth in the high-yield grass business combined with the projected profits from the established consumer products line including other VIASPACE business units, we believe that VIASPACE will profitable in 2009."
VIASPACE acquired Inter-Pacific Arts, a company that imports and markets consumer products in the U.S., and pending regulatory approval, Guangzhou Inter-Pacific Arts Corp. of Guangzhou, China which manufactures the products in a company-owned factory. In business since 2003, Inter-Pacific specializes in high quality, copyrighted, framed artwork sold in U.S. retail chain stores. VIASPACE paid for the acquisition with a combination of stock and debt. The details of the acquisition can be found in the Company's Form 8-K filed October 27, 2008.
About VIASPACE (OTCBB: VSPC) - Founded in 1998 with the objective of transforming proven space and defense technologies from NASA and the Department of Defense into hardware and software solutions that solve today's complex problems, VIASPACE benefits from important patent and software licenses from Caltech, which manages NASA's Jet Propulsion Laboratory. VIASPACE is committed to alternative energy and green technologies. For more information, please see www.VIASPACE.com or contact Dr. Jan Vandersande, Director of Communications, at 800-517-8050 or IR@VIASPACE.com.
Press contact: Dr. Carl Kukkonen 626-768-3360
This news release includes forward-looking statements. These forward-looking statements relate to future events or our future performance and involve known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements. Such factors include without limitation the risks outlined in our periodic filings with the U.S. Securities and Exchange Commission, including our Annual Report on Form 10-KSB, for the fiscal year ended December 31, 2007, as well as general economic and business conditions, the ability to acquire and develop specific projects and technologies, the ability to fund operations, changes in consumer and business consumption habits, competition with larger companies, demand for biofuels and animal feed particularly in China, risks associated with international transactions, crop development, growing, and harvesting related risks, and other factors over which VIASPACE has little or no control.