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Distribution Agreement Between VIASPACE and Japanese Company for Humidity Sensor in Gas Fuel Cells

VIASPACE Inc. announced that Tokai Bussan Co., Ltd. of Nagoya, Japan and VIASPACE have signed a distribution contract under their broad teaming agreement of March 2007 for VIASPACE Energy's line of test equipment. Tokai Bussan has placed its initial order for the HS-1000 VIASENSOR, a laser based, humidity sensor for gas fuel cells. Tokai Bussan's initial focus will be immediate sales to large manufacturers of fuel cells and fuel cell test stations, as well as research of the needs of major automobile corporations in Japan.

Tokai Bussan, a publicly listed company on the Nagoya Stock exchange, engages in development and sales of computer and microcomputer applied systems, design, development and sales of software systems, and development, sales, import and export of electronic devices and high-performance materials.

The HS-1000 uses a razor diode as its sensor in its state of the art design, allowing the highly accurate measurement of the humidity every 1-2 seconds on a continuous basis, significantly faster when compared to other humidity test instruments on the market. The HS-1000 also has no direct interference with the gas stream, so there is no requirement to clean or wipe off the instrument, re-calibrate before use or other maintenance delays.

Dr. Carl Kukkonen, VIASPACE CEO, stated, "Our new distribution contract with Tokai Bussan, our primary teaming partner in Japan, is a perfect example of VIASPACE's global business strategy. We partner with top companies that have a good reputation and the trust of customers in their own markets. We have seen a solid increase in orders for the VIASENSOR since its introduction in May of this year, and we have substantial feedback from automobile manufacturers in several countries that there may be additional uses of the instrument in evaluating the humidity level in the combustion engine exhaust stream and monitoring the fuel cell operation in hybrid automobiles. We have recently expanded our patent portfolio to cover these other potential uses."

Tokai Bussan has excellent relations with these major automotive manufacturers in Japan, as well as with major fuel cell test station manufacturers and fuel cell manufacturers. We are honored to expand our relationship with Tokai Bussan, which has strong marketing capabilities, a substantial distribution channel and the trust of many government and commercial customers in Japan."

VIASPACE has previously announced other strategic relationships and contracts in its fuel cell and security subsidiaries.

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