Revenues for the third quarter of 2008 were $166,000, as compared with $88,000 in the same quarter of 2007. Gross profit for the third quarter of 2008 was $59,000 compared with $24,000 for the comparable quarter of 2007.

Dr. Kukkonen continued, “On October 21, 2008, we also reported that our Ionfinity subsidiary was awarded a $786,000 two year Phase II contract for its proposal entitled “Miniature Electronic Sniffer for Navy Vertical Take off Unmanned Aerial Vehicles (VTUAVs)” submitted to the United States Navy Small Business Technology Transfer (STTR) Program. We expect to see revenues from this effort beginning in the fourth quarter of 2008.

..For its six months ended June 30, 2008, Inter Pacific had unaudited revenues of approximately $2.5 million and unaudited net income of approximately $0.6 million. In addition, as of the date of the closing of the acquisition, Inter Pacific is to have $3 million in cash and equivalents as defined in the acquisition agreement. Inter-Pacific, in addition to its profitable consumer products business, also has a worldwide license to grow and sell an ultra-fast-growing hybrid grass to be used for the production of biofuels and livestock feed. Inter-Pacific has initiated commercial farming of the high-yield grass in China where markets for both sustainable biofuels and animal feed are growing rapidly. VIASPACE intends to accelerate development of the biofuel and feed business, and expects that this business will become a major revenue driver for the Inter-Pacific subsidiary.”