Hybrid Fuel Systems Inc (fka HYFS)

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NEWS!!
US Energy Initiatives Redeems Convertible Notes; Three of Four Equity Funds Repaid in Cash
US Energy Initiatives ("USEIC" or the "Company") (OTCBB:HYFS), (formerly Hybrid Fuel Systems, Inc.), manufacturer of a patent dual-fuel diesel to natural gas conversion technology, today announced that on March 28, 2006, the Company redeemed outstanding convertible notes with various investors which were issued in connection with financings concluding during April 2005.

"We are very pleased to redeem this financing through the payment of cash rather than converting this debt into additional shares of our common stock," said USEIC CEO Mark Clancy. "We enjoyed a strong relationship with our financing partners during a critical phase in our development. The opportunity to take out this convertible debt is good for our financing partners who are repaid in full and for our shareholders as we can avoid the dilution that would have occurred," concluded Mr. Clancy.

About US Energy Initiatives Corporation (OTCBB:HYFS)

Formed in 1996, USEIC delivers its patent dual-fuel diesel to natural gas conversion technology and resells a portfolio of gasoline to natural gas and propane conversion systems through both Company-owned and franchised service centers in twelve states and directly to domestic and international original equipment manufacturers. The Company's primary facility is a 12,000 square foot state-of-the-art systems development and emission testing lab in Atlanta, Georgia. The Company's current clients include General Motors (NYSE:GM), http://www.gm.com; United Parcel Service (NYSE:UPS), http://www.ups.com; US Postal Service; Dallas County School System, Portland, Oregon School System; Oklahoma Natural Gas and a host of private purchasers.

Investors are cautioned that certain statements contained in this document are "Forward-Looking Statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements which are predictive in nature, which depend upon or refer to future events or conditions, which include words such as "believes," "anticipates," "intends," "plans," "expects" and similar expressions. In addition, any statements concerning future financial performance (including future revenues, earnings or growth rates), ongoing business strategies or prospects, and possible future Hybrid actions, which may be provided by management, are also forward-looking statements as defined by the act. These statements are not guarantees of future performance.


US Energy Initiatives Corporation, Tampa
Mark Clancy, 813-287-5787 or 813-624-5515 (cell)
http://www.hybridfuelsystems.com



Source: Business Wire (March 31, 2006 - 7:30 AM EST)

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