VIASPACE Press Release
VIASPACE CEO ISSUES STRATEGY UPDATE
DISCUSSES RECENT PROFITABLE BUSINESS ACQUISITION
PASADENA, CA, January 21, 2009-VIASPACE Inc. (OTCBB: VSPC) CEO, Dr. Carl Kukkonen today provided an overview of the recently acquired profitable subsidiary Inter-Pacific Arts and how it fits into the overall VIASPACE business plans.
Dr. Kukkonen commented, "VIASPACE acquired Inter-Pacific Arts in late 2008. Inter-Pacific has a profitable ongoing business manufacturing and selling quality framed art in the wholesale market. Inter-Pacific also has a worldwide license to a fast growing grass known as China Giant King Grass that is suitable both as a feedstock for cellulosic biofuels and as an animal feed for cows, sheep, pigs, poultry and fish. 1.2 million grass seedlings were planted in late 2008, and land was leased for commercial growth in China."
"Two weeks ago, we completed the independent audit of Inter-Pacific. The results showed $5.4 million in revenue and $1.1 million in net profit in 2007, and $5 million in revenue and $1 million in net profit for the first nine months of 2008. VIASPACE will include Inter-Pacific revenue and net profits from the date of the acquisition in its future consolidated financial results. Inter-Pacific also has an unaudited cash and cash equivalents of $3 million as of December 31, 2008."
"We believe that the Inter-Pacific business will grow and continue to be profitable in 2009 and beyond. In the fourth quarter of 2008 and thus far in 2009, VIASPACE has significantly reduced its cash expenditures, sold its yet to be profitable security business, and reduced its debt burdens. The Company expects to be cash flow breakeven in 2009. VIASPACE will be focusing on its alternative energy businesses including grass for animal feed and biofuels as well as its direct methanol fuel cell business, and on the profitable framed art business. We are continuing our collaboration with Samsung on fuel cartridges for their direct methanol fuel cell product development."
"Inter-Pacific manufactures high-quality, custom designed framed art and ships to large US retailers. A key to Inter-Pacific's success in the US framed art market is that all of the art is high quality, and purchased in the US. All intellectual property royalties are properly paid-we have no counterfeit products. The art (including prints) are sent to Inter-Pacific's manufacturing facility in Guangzhou, China for custom matting and framing, and containers of framed art are sent directly to wholesalers, distributors and large retailers. Inter-Pacific has designers who work with the customers to choose the art, mattes and frames. Customers appreciate high-quality of the framing and clear plastic corner protectors that do not have to be removed for shelf display. Inter-Pacific also assures customers that it will not sell the same product design to any of its competitors."
The previous owner of Inter-Pacific is now a VIASPACE shareholder and has agreed to remain with the company to grow the framed art business.
Profits from the framed art business are reinvested into the grass business, which is expected to become the dominant source of revenue and income in 2010 or 2011. The Company has begun commercial farming of the ultra-fast-growing grass in China's Guangdong 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.
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%. Therefore we do not have to wait until a cellulosic biofuels plant is constructed before we begin to profit from the grass business. "
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.
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 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