Monday, February 7, 2011 – Mid-day Report

Updated New Coverage

Green Baron “Stock Pick”

 

(OTCBB: VSPC)

News Released Before Market Open

VIASPACE Giant King Grass Business Meetings in Philippines and China

Before the open of trading today, VIASPACE (VSPC) issued a new press release that identified some key meetings the Company recently had that point to the potential for its Giant King™ Grass to create energy at electric power plants.  We view the CEO’s comments in today’s press release to be extremely encouraging that significant developments are getting close. 

VSPC stock rallied to hit .01 per share and we suggest members try to grab shares at or below .01 per share over the next few days if it stays at this level.  We anticipate a large percentage move higher very soon.  We have reprinted the news from today below, and also included a portion of our new report on VSPC.  Be sure to check out the full report at TheGreenBaron.com website, and the new video stock chart posted on our home page.

News Issued Today:

IRVINE, Calif., Feb. 7, 2011 /PRNewswire via COMTEX/ -- VIASPACE Inc. (OTCBB: VSPC), and its renewable energy subsidiary VIASPACE Green Energy Inc. (OTCBB: VGREF) reported that Chief Executive Dr. Carl Kukkonen traveled to the Philippines and to the Giant King™ Grass plantation in January following his previously reported meetings in Thailand.

Kukkonen discussed potential electric power plants and pellet mills that could be co-located with Giant King Grass plantations in several areas of the Philippines. Kukkonen visited potential growing sites on Luzon near Manila and in Mindanao.

Kukkonen stated, "The Philippines has a significant shortage of power, and the government is encouraging clean renewable electricity from biomass. I met with the Philippines Department of Energy and with businessmen and local government officials. The Department of Energy will release its pricing for biomass electricity in the second quarter of the year. The weather in the Philippines is good for Giant King Grass; land is available and the potential for biomass is very high. Giant King Grass was well received."

In China, VIASPACE conducted four separate visits to the Giant King Grass plantation and Green Log(TM) factory for potential customers. Two of the groups were from Thailand and their due diligence visits followed business meetings held earlier in January in Bangkok. One group is developing a 25 MW biomass power plant in Thailand to provide electricity and process steam for their processing factory which is under construction. The second group from Thailand is examining Giant King Grass as a clean source of heat in the cement industry.

A large Chinese energy company planning to develop a 50 megawatt biomass power plant toured the Giant King Grass plantation. The company has many other operating power projects and the proposed biomass power plant, awaiting government approval, would be located near the current Giant King Grass plantation. The last visitor to the plantation was a company that currently operates an electric power plant in Cambodia that plans to add additional capacity using biomass.

VIASPACE expects to be able to announce more details about Giant King Grass business arrangements in the near future.

Excerpt from new “Stock Pick” report on VSPC dated 02-07-11 before market open:

The Green Baron Report believes VSPC makes sense as an investment right now for the following revised reasons:

1.       Giant King Grass™ - VIASPACE’s proprietary Giant King Grass is the cheapest green and renewable alternative to coal to produce electricity and to oil to produce liquid biofuels. VIASPACE Green Energy Inc. and its partners grow Giant King Grass, a dedicated, renewable, nonfood, low carbon, and extremely high yield perennial crop, and use it for producing clean energy and other green products.

2.    Suitable for Power Plants - Biomass is carbon neutral and is a renewable energy source that comes from plant material such as Giant King Grass. Photosynthesis converts solar energy and carbon dioxide from the atmosphere into plant material. Burning plant material in a power plant releases the carbon dioxide back into the atmosphere, but it is reabsorbed again when the next crop grows making it carbon neutral.

3.       Meets Emission Reduction Requirement - Giant King Grass pellets can be used to replace up to 20% of coal in existing power plants which reduces carbon emissions by 20% while preserving the large capital investment and allows power companies to meet carbon dioxide emissions reduction requirements for the next 10 to 30 years.

4.       Grassoline - Giant King Grass can be used as a feedstock to make Grassoline - liquid transportation biofuels such as cellulosic ethanol, butanol and green gasoline and to produce biochemicals and bio plastics.

5.       Green Log™ - VIASPACE Green Energy also manufactures and sells Green Log™ low carbon fireplace and campfire logs made from Giant King Grass.  Manufactured fire logs represent a $400 million annual market in North America.  Green Logs generate greater heat output than conventional logs, and its non-chemical, natural campfire aroma makes it an even more appealing alternative.

6.      Joint Ventures - VIASPACE is pursuing joint ventures throughout the world with well-known and reliable customers that have a long-term need for Giant King Grass as a fuel or feedstock.  Using this focused approach, rather than simply selling seedlings to all parties, the Company expects to develop profitable business relationships that hold potential for continuing for decades.

7.       Valuation – VIASPACE Green Energy (OTCBB: VGREF) is a majority owned (75.7%) subsidiary of VIASPACE Inc.   At $3.25 per share this holding is valued at over $20 million.  The current share price of VSPC is only trading at a market cap of $11 million, and VSPC owns a majority of VGREF, DMFCC, and Ionfinity, and the framed art business (Inter-Pacific Arts).  VGREF owns 100% of the framed art business (Inter-Pacific Arts).

8.    Technical factors – Again, we believe the technical factors support a move higher is coming.  Be sure to see our new video stock chart analysis.

About VIASPACE

VIASPACE is a clean energy company providing products and technology for renewable and alternative energy that reduce or eliminate dependence on fossil and high-pollutant energy sources. Through its majority-owned subsidiary VIASPACE Green Energy Inc., the Company grows Giant King Grass as a low-carbon fuel for electricity generating power plants, as a feedstock for bio methane production and cellulosic biofuels, and for other low-carbon, renewable energy products. For more information, please go to www.viaspace.com or www.viaspacegreenenergy.com, or contact Dr. Jan Vandersande, Director of Communications, at 800-517-8050 or

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 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, 2009, 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.