VIASPACE Press Release

VIASPACE Executing on Clean Energy Product Strategy

09/29/2008

New Applications, Product Development and Expansion of Distribution Network

PASADENA, Calif., September 29, 2008 - VIASPACE Inc. (OTC Bulletin Board: VSPC - News), a company commercializing proven technologies from NASA and the US Department of Defense into hardware and software solutions, is executing its energy-based product strategy within the $54 billion clean energy sector. VIASPACE has moved forward with aggressive domestic and overseas marketing of its fuel cell and battery test equipment, expansion of its global network of manufacturers and distributors for its fuel cartridge products, additions of fuel cell test stations and Lithium based batteries to its product portfolio and investigation of opportunities for other alternative energy products.

The VIASENSOR HS-1000 Fuel Cell Humidity Sensor product has generated significant interest in the marketplace and VIASPACE is expanding its customer base in the United States and Asia, including such customers as Ballard, 3M, Scribner Associates and Tokyo Institute of Technology. The VIASENSOR is a proprietary, leading edge, laser-based test device that quickly and accurately determines the level of relative humidity or water vapor flowing in a gas stream, which is vital to the proper function and efficiency of hydrogen fuel cells.

The company has recently received a multi-unit, follow on order from a major automobile manufacturer via its distributor in Japan for the HS-1000, with near term potential for other orders from other automobile manufacturers in Japan and Korea. Based on requests from a major industrial manufacturer in Japan, VIASPACE has made available for sale a higher temperature unit, the HS-2000 VIASENSOR. The company is also investigating the adaptation of the VIASENSOR product for testing automotive exhaust emissions of internal combustion engines. This is a large current market and not dependent on the future adoption of fuel cells.

VIASPACE subsidiary Direct Methanol Fuel Cell Corporation (DMFCC) has announced that it is working with Samsung in developing, manufacturing, distributing and obtaining safety certification for disposable methanol fuel cartridges to provide the energy source for fuel cell-powered products. DMFCC has recently taken orders from other fuel cell manufacturers including Polyfuel, with additional requests for quotation now coming with regularity. DMFCC has expanded its network of global fuel cartridge manufacturing, distribution and sales infrastructure partners that the industry requires including e-Fuel Cell Technologies of Malaysia and Tyco Electronics Corporation in the US. Even though there is uncertainty of the start of manufacturing, major OEMs have been publicly stating roll out dates for hand held and lap top applications of 2009-2010.

VIASPACE has recently expanded its fuel cell instrument product line to include Fuel Cell test stations manufactured by WonATech in Korea, GasHub in Singapore, and other low cost Asian manufacturers. The fuel cell test stations provide excellent cross selling opportunities for the HS-1000 product line. Those new products will be displayed in Fuel Cell shows in the next thirty days and announced this week at the Fuel Cell show in Stuttgart, Germany.

The company has also added both Lithium Ion batteries and Lithium Polymer batteries to its product portfolio via partnerships with HYB of Taiwan and Yoku of Hong Kong. Although only recently added, VIASPACE has already introduced samples to major electric bike manufacturers, with its first success coming from its Light Electric Vehicle (LEV) battery pack, which has been sold to 3rd Millennium Energy LLC of Orange, CA. The pack is based on special cells produced by VIASPACE partner, Yoku of Hong Kong, and it was recently featured at the Interbike 2008 show in Las Vegas. VIASPACE has also recently developed and is now selling the BA-1000 Battery Electrode Health Analyzer, designed to measure the electrochemical and thermodynamic aspects of Lithium Ion batteries, which should aid battery designers in developing safer chemistry batteries. The BA-1000 will be featured in a presentation at Batteries 2008 in Nice, France next week.

Dr. Carl Kukkonen, CEO of VIASPACE, commented, "With energy needs increasing, fuel prices rising and emissions reaching critical levels we are leveraging our expertise to provide fuel cell test equipment, fuel cell cartridges, batteries and battery test equipment and new products and applications designed to conserve energy and reduce emissions. We are actively pursuing the aggressive strategic plans for our energy division, ramping sales of our current products and pursuing new products and applications with short to medium term market potential. This is an exciting time for VIASPACE."

About VIASPACE: Originally 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. For more information, please visit our website at www.VIASPACE.com

Investor Relations contact:
Dr. Jan Vandersande, Director of Communications
800-517-8050
[email protected]

Press contact:
Dr. Carl Kukkonen, CEO
626-768-3360
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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 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, and other factors over which VIASPACE has little or no control.