VIASPACE Press Release
VIASPACE SELLS NON-CORE SECURITY BUSINESS LINE FOR $479,000
PASADENA, CA, December 29, 2008-VIASPACE Inc. (OTCBB: VSPC) today announced that it has sold its non-core security business line to Knovitech, Inc for $479,000 in cash and debt forgiveness. Former VIASPACE COO, Amjad Abdallat will be the new Knovitech CEO, and some VIASPACE employees in the security business unit are expected to transfer to Knovitech.
VIASPACE will continue to focus on its green energy business. VIASPACE will retain the newly acquired Inter-Pacific Arts (IPA) which is a profitable company with a license for a new fast-growing grass suitable for the global $25 billion biofuel and $40 billion animal feed markets. VIASPACE previously announced the planting of 1.2 million grass seedlings and the lease of agricultural land in China. VIASPACE will also retain Direct Methanol Fuel Cell Corporation (DMFCC) which produces disposable fuel cartridges for portable electronics expected to be powered by fuel cells. DMFCC is a cartridge supplier to Samsung in Korea and other companies. With this focus; VIASPACE believes that it has a plan to be cash flow breakeven in 2009.
Dr. Carl Kukkonen, CEO of VIASPACE, commented, "Our strategy addresses the near, mid-and long-terms with a combination of current subsidiary profits and large future potential. The ongoing IPA framed art business is growing and profitable. These profits are invested into the grass business which addresses large current markets as an animal feed, as well as very large future markets as a feedstock for nonfood crop, cellulosic, biofuels such as ethanol, methanol and bio-crude. The disposable fuel cartridges produced by Direct Methanol Fuel Cell Corporation will represent a potentially large and recurring revenue stream when the portable electronics OEMs introduce their fuel-cell powered products into the marketplace.
.Kukkonen continued, "I strongly believe in the security business we sold to Knovitech. It should have a bright future, but is not yet profitable. The sale has provided VIASPACE $479,000 in cash and debt forgiveness which allows us to improve our balance sheet and focus on green energy. In this difficult economic environment, we have to be creative and make tough decisions in order to survive and thrive. I believe that the IPA acquisition and our sale of nonprofitable, non-core business lines positions us well for the future."
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 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.