Hybrid Fuel Systems Inc (fka HYFS)

[ohiobuckkeye]

5-31-06 PR US Energy Initiatives Contracts for the Sale of 1,500 Dual Fuel Systems

Wednesday May 31, 7:00 am ET

Previously Developed Isuzu 2.5 and 3.0L Common-Rail Systems Ready for Deployment

TAMPA, Fla.--(BUSINESS WIRE)--May 31, 2006--US Energy Initiatives Corporation ("US Energy" or the "Company")

(OTCBB:HYFS - News), a manufacturer of a patent dual-fuel diesel to natural gas conversion technology referred to as Hybrid Fuel Systems, today announced it has executed an agreement with Autogas (Thailand) Ltd. registered in Thailand as (Greengas NGV).
"Autogas is a six-year old Thailand-based company," said US Energy CEO Mark Clancy, "and we're excited to have such a strong partner in this critical market. We are also pleased to deliver this first significant order for our technology to our shareholders. As we gear up our enterprise to react to the OEM universe, this major aftermarket project will allow us to build-out our Thailand-based service and support capability. We anticipate we will begin deliverables against this agreement during the late third quarter, early fourth quarter and look to make a meaningful impact to our revenues in the fourth quarter of this year," concluded Mr. Clancy.

"In addition to our anticipated work with the Isuzu engines, on our behalf, US Energy is also developing a dual fuel system for Nissan 454 series, the Hino H07 series and the Mitsubishi FD series," said Autogas CEO Robin Hughes. "The potential for these three engines for our existing portfolio of clients runs to over 3,000 vehicles. Autogas is delighted to have acquired the rights to market and distribute the US Energy proven dual-fuel diesel to natural gas systems in Thailand. EPA approval on engine platforms in the USA provides us with the comfort that we will adhere to the highest levels of engineering integrity and emissions reductions on all types of engine applications," concluded Mr. Hughes.

About US Energy Initiatives Corporation (OTCBB:HYFS - News). US Energy, 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.

About Autogas (Thailand) Ltd. (ETS). Autogas-Thailand is recognized as an innovative project solutions company in all areas of alternative fuels including vehicle conversions, fuel dispensation, warranty and after market service. US Energy completes our matrix of opportunity.

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

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