Hybrid Fuel Systems Inc (fka HYFS)

[Golden Cross]

US Energy Initiatives Corporation Reports 470% Increase in Annual Revenues for 2005
Tuesday April 18, 7:00 am ET
Shareholders' Deficit Down 86% over a Two Year Period


TAMPA, Fla.--(BUSINESS WIRE)--April 18, 2006--US Energy Initiatives Corporation ("US Energy" or the "Company") (formerly Hybrid Fuel Systems, Inc.) (OTCBB:HYFS - News), manufacturer of a patent dual-fuel diesel to natural gas conversion technology, today announced revenues of $652,400 and loss from operations of $(3,384,312) for the year ended December 31, 2005 as compared to revenues of $138,724 and a loss from operations of $(2,033,709) for the same period ended December 31, 2004.
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"Our revenues at the year end 2005 were greater than our revenues for the three previous years combined," said US Energy CEO Mark Clancy. "While we are encouraged by this growth, there are two other aspects to US Energy that we believe further demonstrated we're on the right track. When we came on board during January 2004, we inherited a Shareholders' Deficit of $(1,949,683). For the year ended December 2004, we reduced the Shareholders' Deficit to $(671,253), a 65% reduction. We continued that trend and at the year ended December 31, 2005, we had further reduced Shareholders' Deficit down to $(271,577) or another 59.6% reduction. Overall, during the past two years, we have eliminated 86.1% of the Shareholders' Deficit. While this trend is promising, our marketing program geared to the original equipment manufacturer holds great hope for our near term outlook," continued Mr. Clancy.

"During the first quarter, 2005, we embarked on a strategy that envisioned delivery of our technology through automotive OEMs. A part of our strategy was constructing our development facility in Peachtree City, Georgia. Since June 2005, we have been actively engaged by OEMs and have now matured these relationships through the proto-type/field trial stage. Should we be successful in concluding one or more of these OEMs, we would be in a position to offer some tangible revenues and earnings guidance and evolve from the development to the operation stage of our business cycle. We are confident of concluding one or more of our client OEMs during the second quarter 2006," concluded Mr. Clancy.

Statement of Operations 2005 2004
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Revenue $ 652,400 $ 138,724
Loss from Operations $ (3,384,312) $ (2,033,709)
Weighted common shares outstanding 88,909,988 23,857,093
Basic and diluted loss per share $ (0.09) $ (0.12)

Balance Sheet
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Cash $ 818,557 $ 2,025
Current Assets $ 3,858,816 $ 73,498
Current Liabilities $ 4,130,393 $ 753,258
Shareholders' Equity (deficit) $ (271,577) $ (671,253)

About US Energy Initiatives Corporation (OTCBB:HYFS - News), formed in 1996, 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 - News), http://www.gm.com; United Parcel Service (NYSE:UPS - News), 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.



Contact:
US Energy Initiatives Corporation, Tampa
Mark Clancy, 813-287-5787, ext. 222
http://www.usenergyic.com