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VIASPACE Executing on Clean Energy Product Strategy

August 28, 2007

New applications, product development and expansion of distribution network.


PASADENA, CA /PRNewswire-FirstCall/ -- VIASPACE Inc. (BULLETIN BOARD: VSPC) , 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 $55 billion clean energy sector. VIASPACE is moving forward with aggressive domestic and overseas marketing of its fuel cell test equipment, expanding its global network of manufacturers and distributors for its fuel cartridge products, and investigating opportunities for new battery and fuel cell testing products.

VIASPACE established the VIASPACE Energy business unit to accelerate the growth of its fuel cell humidity sensor product line and direct methanol fuel cell cartridge business and to pursue new opportunities identified within the growing alternative energy market. VIASPACE has received positive feedback for its fuel cell power source and humidity sensor technologies from potential customers in several market sectors including major auto manufacturers, automotive test systems providers, fuel cell developers and suppliers to portable electronics OEMs.

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. 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.

As announced, the company recently received an order from the University of Connecticut. Selling into the university market is a significant achievement as more than 400 universities worldwide are actively engaged in fuel cell research and development. VIASPACE is also following up on inquiries from overseas customers in China, Japan, Korea, Taiwan, India, England and Israel.

Based on requests from potential automobile industry customers, VIASPACE Energy is 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) is engaged in developing, manufacturing, distributing and obtaining safety certification for disposable methanol fuel cartridges to provide the energy source for fuel cell-powered products. DMFCC is expanding its original focus on laptop computers, cell phones and other portable electronic devices powered by direct methanol fuel cells to explore additional new cartridge applications including those for medical-based products and heated recreational sportswear.

DMFCC has expanded its network of global fuel cartridge manufacturing, distribution and sales infrastructure partners that the industry requires. As announced, the most recent additions to its partner network include e-Fuel Cell Technologies of Malaysia and Tyco Electronics Corporation in the US. e-Fuel Cell Technologies is a supply chain manager and distributor of consumer electronic and fuel cell products in Malaysia and throughout Southeast Asia. The teaming agreement includes distribution of VIASPACE Energy's line of test equipment and DMFCC's line of fuel cell cartridges and other fuel cell products. The company has also executed a design and certified manufacturer agreement with Tyco Electronics, a U.S.-based global manufacturer of electronic components and systems.

VIASPACE has licensed a broad intellectual property portfolio including 59 issued and 59 pending patents on direct methanol fuel cell technology from Caltech and the University of Southern California. VIASPACE offers patent protection for OEMs and manufacturers of direct methanol and other liquid hydrocarbon fuel cells.

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, 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 Web site.


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