VIASPACE Press Release
VIASPACE CEO DISCUSSES STRATEGY FOR PROFITABILITY
PASADENA, CA, November 25, 2008-VIASPACE Inc. (OTCBB: VSPC) today presented an overview of the company's strategy for future profitability.
VIASPACE CEO Dr. Carl Kukkonen reports, "I want to discuss the changes that we are making to help ensure that the company will reap large profit potential from our green energy business. VIASPACE's recent acquisition of the profitable company Inter-Pacific Arts (IPA) with its license for fast-growing high yield grass will be a key to our success. The acquisition has perplexed some of our investors and I hope that this CEO report will offer some clarity. The IPA profit and positive cash flow is extremely important for the short term, and the grass business is expected to be very profitable in the near future. These new businesses will further diversify VIASPACE--expanding the investor audience to include agricultural and biofuel investors in addition to the current investor base banking on the Direct Methanol Fuel Cell Corporation high-tech fuel-cell potential."
"VIASPACE plans to nurture and expand the IPA framed art business which has generated $5.1 million in sales and $1.5 million in profit (unaudited) in the first three quarters of 2008 (an audit is in progress). The previous owner of IPA has signed on to continue running this business for a minimum of two years. The profits from the framed art business will be reinvested into growing and selling our licensed fast-growing grass for the $40 billion per year animal feed market and as a feedstock for the $25 billion per year biofuels market."
"VIASPACE plans to continue to support its Direct Methanol Fuel Cell Corporation subsidiary (DMFCC), which makes disposable fuel cell cartridges for fuel cell powered portable electronic devices such as notebook computers and mobile phones expected to be introduced into the marketplace by OEMs including Samsung, Toshiba and Panasonic. DMFCC has received cartridge development contracts from Samsung and from CMR Fuel Cells. DMFCC also holds important and valuable direct methanol fuel cell licenses from Caltech and University of Southern California. DMFCC remains an important part of our green energy strategy as this market has enormous potential."
"VIASPACE will significantly reduce its cash needs by major cuts in spending on yet-to-be-profitable business lines. VIASPACE will focus on its profitable framed art business and expand the development of the green energy grass business. Most yet-to-be-profitable business lines will be sold, scaled back or put on hold, and cost reductions will also come from reducing management and staffing from these areas. With the credit meltdown and the stock market crash, it is difficult and very expensive to raise debt or equity capital to fund business lines that are not profitable. VIASPACE has to generate sufficient funds through sales and contracts to cover our operating expenses. We expect that having a positive cash flow will assure VIASPACE's success, and should increase shareholder value. If we reduce our need to issue additional equity for cash, there should be less selling pressure on the stock and we expect that the market will react favorably to our future plans. The VIASPACE Board of Directors feels these changes will help to move VIASPACE forward and the focus on green energy will lead to increased value for our investors."
About VIASPACE (OTCBB: VSPC) - VIASPACE was founded in 1998 and became public in 2005. VIASPACE's direct methanol fuel cell intellectual property was licensed from Caltech, which manages NASA's Jet Propulsion Laboratory where the direct methanol fuel cell was invented. VIASPACE is focused on green energy through its fuel cell cartridges, and the license for fast-growing grass as a feedstock for nonfood crop biofuels, and with current grass markets as feed for dairy cows, pigs, sheep, goats, fish and other animals. For more information, please see http://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