VIASPACE Green Energy Inc. announced that it has signed a five-year contract to supply Giant King(TM) Grass (GKG) pellets to a home furniture manufacturer located in the Guangdong Province of China. This will be VIASPACE Green Energy's first supply contract for its pellets. The customer will burn the GKG pellets in its boiler, which currently requires over 2,000 metric tons of fuel per month, for generating heat and energy to be used in its manufacturing process.

VIASPACE Green Energy anticipates supplying at least 12,000 metric tons of pellets per year to this specific customer which is expected to generate approximately $7.5 million in revenue over the term of the contract. The company will begin delivering pellets immediately which will result in fourth-quarter revenues from pellet sales.