VIASPACE Press Release
VIASPACE Subsidiary Projects $20 Million in Revenue from New Hybrid Grass
PASADENA, CA, November 3, 2008-VIASPACE Inc. (OTCBB: VSPC) today announced the Company is focused on commercial farming of its new fast-growing hybrid grass to initially capture a significant share of China's $40 billion market for animal feed. The high-yield grass is ideal for feeding livestock as well as producing cellulosic biofuels, which is a growing market. The recent significant rising of Chinese consumption of meat and dairy products has created a tremendous growth in demand for livestock feed. VIASPACE is aggressively pursuing this near-term revenue opportunity and expects the high-yield grass business to generate $20 million in revenue in the next two years, while it develops the biofuels business in the near term.
Dr. Carl Kukkonen, CEO of VIASPACE, commented: "Our recent acquisition of Inter-Pacific, a profitable $5 million revenue-generating company with a worldwide license to cultivate a high-yield grass for agriculture and sustainable energy, has opened the door to tremendous growth and cash flow for VIASPACE. Our first objective is to gain a significant market share of China's rapidly growing animal feed industry and we are also pursuing opportunities with partners worldwide to distribute this innovative new feedstock and biofuels product."
The Company has begun commercial farming of the ultra-fast-growing grass in China's Quangdong Province, a major manufacturing and agricultural center in southern China. The China Giant King Grass is a natural, non-genetically modified hybrid with many advantages over other grasses and crops used for feed. This perennial species can grow up to twelve feet high in sixty days, produce four crops per year in tropical and subtropical climates, and yield seven times more mass than corn. In addition to biofuels usage, the crops can be used to feed dairy cows, pigs, chickens, fish and other livestock in its initial processing.
Dr. Kukkonen continued: "While the high-yield grass will soon be used to produce biofuels including sustainable cellulosic ethanol, we have chosen to also focus on the immediate opportunity to grow and sell this product in China's livestock feed market which has a well established customer base, excellent profit margins, and consistent annual growth rate exceeding 15%."
China's animal feed industry is valued at $40 billion and as population income rises it creates greater demand for meat products, reports Feed International, "Growth Areas in Global Feed Production," January 2008. Also, according to China's National Bureau of Statistics each person now consumes 5% more meat and 10% more milk annually than five years ago. China Daily reports the increasing consumption has created a corresponding spike in demand for feed to produce a growing population of pigs, cows and other livestock. Faced with increasing pressure on domestic supply, China imported approximately $4 billion in soybeans for food and feed in 2007 just released by the American Soybean Association in September 2008.
As announced last week, VIASPACE has acquired Inter-Pacific Arts Corp., 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. VIASPACE has the immediate ability to fund the rapid expansion of the high-yield grass business with cash flow from Inter-Pacific's well established and profitable commercial products division.
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
A picture of the grass is available on the VIASPACE website or by e-mailing Kukkonen@VIASPACE.com
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.