VIASPACE Reports Second-Quarter 2009 Financial Results

Higher Revenues, Expense Reductions; Smaller Losses

PASADENA, Calif., Aug. 17 /PRNewswire-FirstCall/ -- VIASPACE Inc. (OTC
Bulletin Board: VSPC), a clean energy company providing products and
technology for renewable and alternative energy, announced financial results
for the second quarter ended June 30, 2009.

Revenues for the quarter were $1.47 million, including $1.28 million from the
late-2008 strategic acquisition of Inter-Pacific Arts, Inc. (IPA) and $190,000
primarily from military contracts for monitoring and detection systems. Gross
profit for the quarter was $613,000, including $581,000 related to IPA. Both
revenue and gross profit were much larger than for second-quarter 2008, when
revenues were $12,000 and gross profit was $10,000.

Operating expenses for the quarter declined to $1.2 million, compared to $1.9
million in second-quarter 2008, due to lower research and development expense
and lower selling, general and administrative expense. Stock-based
compensation and stock option expense for the quarter was $980,000, compared
to $1.32 million in second-quarter 2008.

Operating loss for the quarter declined significantly to $614,000, compared to
an operating loss of $1.9 million in second-quarter 2008.

For the quarter, other income, net, including noncontrolling interests in
consolidated subsidiaries and income tax expense, was $59,000, compared to
other expense, net, of $30,000 in second-quarter 2008. Included in other
income for 2009 was a gain related to the sale of the Company's humidity
sensor business line during the quarter. Included in other expense for 2008
was discontinued operations related to the humidity sensor business sale and
the security business unit sale.

Net loss for the quarter was $555,000, or $(0.00) per share, compared to a net
loss of $1.9 million, or $(0.00) per share for second-quarter 2008.

Consolidated cash and cash equivalents were $1.6 million on June 30, 2009.

VIASPACE Chief Executive Dr. Carl Kukkonen commented: "Second-quarter growth
reflects continuing revenue contributions from IPA and higher revenues from
Ionfinity's government contracts, which are ongoing. Other business
activities, such as fuel-cell cartridge development with Samsung through our
direct methanol fuel cell subsidiary, are also ongoing and expected to
contribute to year-over-year growth in 2009.

"Our focus remains on expanding our footprint in renewable energy through our
subsidiary, VIASPACE Green Energy. Our strategy is to generate higher
revenues, maintain lower research and development costs and other expenses,
and utilize operating cash flows to internally finance our renewable energy
operations; primarily to develop substantial acreage of Giant King Grass to
meet anticipated large demand for low carbon, non-food, renewable sources to
supply electric power utilities and producers of liquid biofuels known as
grassoline."

During the quarter, cash from operations was used for work related to existing
planted acreage, land development for increasing Giant King Grass production,
and pursuing supply contracts with potential customers, including electric
power suppliers, biofuels manufacturers, and other large-scale customers for
Giant King Grass.

Kukkonen continued: "A recent independent analysis confirmed that Giant King
Grass is an excellent source of renewable, low-carbon energy. Its fast-growing
and high yield-per-acre characteristics make it a desirable economic
alternative to switchgrass and other grasses and plant crops currently being
used or considered for non-petroleum energy. In fact, we are beginning to see
active interest in our Giant King Grass from a number of energy providers
seeking to either increase their use of renewable sources and reduce
dependence on petroleum, or add energy production capacity that is entirely
based on renewable sources."

"As in first and second quarters this year, we expect financial results in
future periods to continue improving over last year," Kukkonen added. "Based
on numerous meetings with potential customers, we believe that progress with
our renewable energy strategy will become more visible this year and set the
foundation for substantial business and revenue growth in 2010."

About VIASPACE Inc.: VIASPACE is an alternative energy company providing
products and technology for renewable and clean energy that reduce or
eliminate dependence on fossil and high-risk-pollutant energy sources. The
Company provides raw material for cellulosic biofuels and develops and markets
fuel cell cartridges, products and technology. VIASPACE subsidiary Direct
Methanol Fuel Cell Corporation owns a portfolio of fuel cell patents licensed
from Pasadena-based California Institute of Technology (Caltech), which
manages NASA's Jet Propulsion Laboratory, where the direct methanol fuel cell
was invented. For more information, please see www.VIASPACE.com or contact Dr.
Jan Vandersande, Director of Communications, at 800-517-8050 or
IR@VIASPACE.com.

Safe Harbor Statement: Information in this news release and include
forward-looking statements. These forward-looking statements relate to future
events or 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, risks outlined in our periodic filings with the U.S. Securities
and Exchange Commission, including Annual Report on Form 10-K for the year
ended December 31, 2008, as well as general economic and business conditions;
the ability to acquire and develop specific products and technologies; changes
in consumer and business demand for the Company's products; competition from
larger companies; changes in demand for alternative and clean energy; risks
associated with international transactions; risks related to technological
change; and other factors over which VIASPACE has little or no control.

SOURCE VIASPACE Inc.

Dr. Jan Vandersande, Director of Communications of VIASPACE Inc.,
800-517-8050, IR@VIASPACE.com