VIASPACE Signs Giant King Grass Agreement in Myanmar

WALNUT, Calif., Oct. 16, 2012 (GLOBE NEWSWIRE) -- VIASPACE, Inc. (OTCQB:VSPC) today announced that it has signed business development and confidentiality agreements with JUNE Industry Ltd. of Myanmar at a ceremony held at the Chatrium Hotel in Yangon, Myanmar (former name Burma). JUNE Industry Ltd. is a member of the JUNE Group of Companies which cultivates, harvests and markets algae products.

Under the agreement, JUNE will grow Giant King™ Grass in Myanmar for commercial applications being pursed by VIASPACE and JUNE--including clean and renewable electricity generation, and a novel application of Giant King Grass in conjunction with algae. VIASPACE has received a cash payment from JUNE to proceed with the contract.

The agreements were signed by JUNE Managing Director, Dr. Nu Nu Win and VIASPACE CEO, Dr. Carl Kukkonen. The formal signing ceremony was chaired by Mr. U Ohn, Vice Chairman of FREDA (Forest Resource Environment Development and Conservation Association) and the leading environmentalist in Myanmar (see the captioned picture at the link shown below if image not displaying in this press release

http://www.pricetargetmedia.com/images/myanmar_clean_energy_ceremony.jpg).

Participants in the signing ceremony in Myanmar –

Managing Director of Shin Saw Pu Hotels & Co., Ltd., Dr. Kyaw Win, VIASPACE CEO Dr. Carl Kukkonen, U Ohn, Vice Chairman of FREDA, Dr. Min Thein, Project Director, Advisor, founder of Spirulina in Myanmar, and Dr. Nu Nu Win, JUNE Managing Director VIASPACE CEO, Dr. Carl Kukkonen, visited the JUNE production facilities in Myanmar (see the captioned picture at http://www.pricetargetmedia.com/images/myanmar_june_algae_cultivation.jpg if image not displaying in this press release) and also the site where Giant King Grass will be grown. Suitable land, climate, rainfall and irrigation all make for ideal conditions to grow Giant King Grass (GKG) in Myanmar.

JUNE algae cultivation facility in Myanmar

Dr. Kukkonen reported, "Myanmar has the perfect climate for growing Giant King Grass and there is a great need for electricity. We envision Giant King Grass playing an important role in Myanmar's future, not only for electricity generation, but also for biofuels and other applications that will provide jobs and help alleviate rural poverty. I am happy to be working with JUNE Project Director, Dr. Min Thein, who is very experienced and has a good team. I will work closely with Managing Director, Dr. Nu Nu Win, to develop the business opportunities.

JUNE Managing Director, Dr Nu Nu Win states. "Since the move to democracy and the lifting of sanctions, Myanmar is developing rapidly with the help of foreign technology and foreign investment. We believe that VIASPACE Giant King Grass will be important for bioenergy and other applications. JUNE has the goal to be our country's leading company in green and natural products and technology."

VIASPACE Chairman, Dr. Kevin Schewe, commented, "Myanmar's recent national reconciliation and economic reforms have placed it on the world stage of business development. Prominent international organizations including the International Monetary Fund, World Bank and Asian Development Bank have welcomed these reforms and have expressed willingness to support economic and infrastructure growth in Myanmar. The military government ran power projects in the past, now the new civilian government is granting permission to local and foreign companies to generate power. We hope to work with our partners to create a viable and vibrant renewable biomass/bioenergy business model to serve the national interests and growth in Myanmar."

Dr. Kukkonen conducted research and presented a paper entitled "Electricity Options for Myanmar's Future" to a government advisory panel, the Renewable Energy Association of Myanmar, and at the American Center of the US Embassy in Yangon.

Giant King Grass 5 1/2 months after first planting

The Republic of the Union of Myanmar, formerly named Burma, is the size of Texas with a population of 55 million people compared to 26 million in Texas. Myanmar is located in Southeast Asia on the Andaman Sea and the Bay of Bengal between Bangladesh and Thailand. Myanmar also has borders with India, China and Laos. Myanmar has considerable natural resources including petroleum, natural gas, minerals and precious stones such as jade ruby and sapphire.  Three quarters of the people do not have electricity, and increasing electricity supply is a national priority.

The previous military government instituted significant reforms including an election, and a nominally civilian parliamentary government took power in 2011. In response to the reforms, the US, European and other governments have lifted or suspended sanctions and are supporting development and reconciliation in Myanmar. US Secretary of State Hillary Clinton visited Myanmar in 2011, and the US has resumed full the domestic relations with Myanmar and appointed an ambassador. Formerly imprisoned Burmese democracy advocate and Nobel Peace Prize winner, Aung San Suu Kyi is now a member of Parliament. She visited the US in September and was awarded the Congressional Gold Medal and met with President Obama.  Myanmar President and former general Thein Sein also visited the US in September and gave a speech at the United Nations, met with Secretary of State Clinton, former president Bill Clinton and former Secretary of State Henry Kissinger.

About VIASPACE Inc.

VIASPACE grows renewable Giant KingTM Grass as a low-carbon fuel for clean electricity generation; for environmentally friendly energy pellets; and as a feedstock for bio-methane production and for green cellulosic biofuels, biochemicals and biomaterials. Giant King Grass is a proprietary, high yield, dedicated biomass clean energy crop that does not compete with or displace food production. For more information, please go to 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 includes 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 those 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, 2011, and other factors over which VIASPACE has little or no control.

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The following pictures are available for download: