Hybrid Fuel Systems Inc (fka HYFS)

[ohiobuckkeye]

General Motors Thailand Executes Memo of Understanding with US Energy Initiatives Corporation

Monday June 12, 4:05 pm ET

Hybrid Fuel Technology Selected for Colorado DieselCNG Program


TAMPA, Fla.--(BUSINESS WIRE)--June 12, 2006--US Energy Initiatives Corporation (OTCBB:USEI - News; "US Energy" or the "Company") a manufacturer of a patent dual-fuel diesel to natural gas conversion technology referred to as Hybrid Fuel Systems, today announced the Company has executed a Memorandum of Understanding (MOU) with General Motors Thailand (GMTH) to provide the Hybrid Fuel System for use with the GMTH Colorado Diesel/CNG program. Under the terms of the MOU, the Company is designated as a Tier 1 vendor and shall be the manufacturer of record. The program envisions first vehicles during the fourth quarter 2006.

"We are pleased to have been selected by GMTH for this critical project," said US Energy CEO Mark Clancy. "Thailand is an exciting marketplace and aligning our dual fuel system with the world's largest automotive OEM creates a strong opportunity for our growth. While a milestone such as this is a company wide, team effort, I would recognize two behind the scenes contributors. We recognize Frank Davis for his 30 years of dedication to our industry and for possessing the creative ingenuity which led to five patents, a strong technology and the cornerstone of our company. We also recognize John Stanton, our Chairman of the Board whose strategic guidance and business acumen has proven invaluable in our march forward," concluded Mr. Clancy.

About the Thailand Automotive Market: The following description was extracted from Thailand Automotive Industry Update: 2005. The "Detroit of Asia", Thailand is the second largest pick-up truck market after the US. The Thai automotive Industry accounted for 12% of the Thai GDP and last year generated that country's second highest level of export revenue. The number of cars and trucks produced in Thailand between January and August 2005 increased 22% to 710,889 units and is expected to exceed 1,000,000 for 2006. Of vehicles produced, 38% were for export. GM is investing Bt2.7 (Thai Baht) for a new paint shop at its Rayong plant and raise production capacity from 110,000 units per year to 160,000 units per year. GM's expansion is to meet increased demand for Chevrolet vehicles in Thailand as well as 100 export markets around the world. The full article on the Thai auto market can be seen at http://www.business-in-asia.com/auto_article2.html.

About US Energy Initiatives Corporation: US Energy Initiatives Corporation (OTCBB:USEI - News), formed in 1996, delivers its patent dual-fuel diesel to natural gas conversion technology. 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),
United Parcel Service (NYSE:UPS - News),
US Postal Service;
Dallas County School System,
Portland, Oregon School System;
Oklahoma Natural Gas and a host of private purchasers.



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

Source: US Energy Initiatives Corporation