VIASPACE Press Release

VIASPACE Reports From Fuel Cell Forum in Germany Fuel Cells Win US Department of Defense Prize

10/14/2008

PASADENA, CA.- October 14, 2008-VIASPACE Inc. (OTCBB: VSPC). Dr. Carl Kukkonen, CEO of VIASPACE and its Direct Methanol Fuel Cell Corporation subsidiary reported from the eighth annual F-Cell Forum which was held September 29-30 in Stuttgart Germany as a part of the $54 billion alternate energy market sector. The forum considered stationery, automotive and portable fuel cells, and the fuel infrastructure needed to support commercialization of fuel cell products. At the same time as the F-Cell Forum in Germany, the US Department of Defense held its Wearable Power Prize competition in the US, and fuel cells took the top three prizes over batteries-- two of these three were direct methanol fuel cells.

At the forum, Dr. Kukkonen gave an invited presentation entitled, "Fuel Cartridge Manufacturing and Distribution Infrastructure for Portable Electronics Powered by Micro Fuel Cells". He also discussed VIASPACE products for fuel cell testing including the HS-1000 real-time fuel cell humidity sensor and fuel cell test stations. Dr. Kukkonen emphasized that fuel cells will be hybridized with batteries in most micro and portable applications, and he introduced the VIASPACE lithium ion batteries as candidates for this hybridization, particularly for electric bicycles.

Dr. Kukkonen said, "Europe represents a large potential market for fuel cell powered notebook computers, mobile phones and other devices that will use disposable fuel cartridges. Electric bicycles are also big in Europe. F-Cell 2008 gave us a great opportunity to introduce our products. I received inquiries about cartridges for ethanol fuel cells as well as new methanol-based systems. Hydrogen-based fuel cells were a major topic with speakers covering fuel cells for residential and backup power and for automotive applications. Ford Motor Company presented their three-year operating experience with fuel cell vehicles and there were also presentations by Volkswagen and Honda."

Dr. Kukkonen continued, "At the same time as the F-Cell forum in Germany, the US Department of Defense Wearable Power Prize competition was held in California. The DOD offered a $1 million first prize, $500,000 second prize and $250,000 third price for wearable power systems that could provide 20 W of average power with 200 W of peak power for 96 hours in a package weighing less than 4 kg. Batteries, fuel cells and almost any energy technology were allowed to compete. There were 48 teams entered in the competition from large and small companies and universities. To be a contender the entry had to pass the 96 hour test, the winner was the system with the lowest weight. To many people's surprise, fuel cells took all three prizes. The fuel cells were hybridized with batteries, but battery alone solutions did not make it. First place was taken by a team from DuPont and Smart Fuel Cell in Germany which used a direct methanol fuel cell. A solid oxide fuel cell took second place and another system using the Smart Fuel Cell direct methanol fuel cell took third place."

Dr. Kukkonen concluded, "This competition showed that for longer operating times a fuel cell beats a battery. The batteries that came closest in this competition were special-purpose disposable primary batteries. Rechargeable batteries did not store enough energy to be serious competitors."

About VIASPACE: 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 see www.VIASPACE.com, or contact Dr. Jan Vandersande, Director of Communications at 800-517-8050, or [email protected].

Press contact: Dr. Carl Kukkonen 626-768-3360
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