Viaspace, Inc. (VSPC)

[august1991]

On October 22, 2007, VIASPACE Inc. (the "Company") completed a sale on behalf of its majority owned inactive subsidiary eCARmerce Inc. ("eCARmerce"), whereby eCARmerce sold all of its patents and patent applications to Viatech Communication LLC for net proceeds of approximately $325,000. The Company is entitled to receive approximately $240,000 of the net proceeds based on its ownership interest in eCARmerce. The remaining proceeds will be distributed to other eCARmerce shareholders. The patents and patent applications relate to eCARmerce’s interactive radio technology and were sold on July 16, 2007 as announced in a previous Form 8-K filing. VIASPACE Inc. retains a worldwide, non-exclusive license under the patents.