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USEI (.08) Achieves 65% Diesel Displacement for Mercedes 494 Engine

Market Wire "US Press Releases "

TAMPA, FL -- (MARKET WIRE) -- 12/18/06 -- US Energy Initiatives Corporation (OTCBB: USEI) ("US Energy" or the "Company") an ISO-9001 certified manufacturer of a patent dual-fuel, diesel to natural gas conversion system today announced the Company has finalized the dual-fuel system for a Mercedes 494. The engine was shipped from Thailand to the Company's facilities in PeachTree City, Georgia where calibration and mechanical development work was completed.

"This represents a significant opportunity for us to showcase the versatility and range of our patent dual-fuel system," said CEO Mark Clancy. "We have been successful in taking the Mercedes engine up to the maximum OEM specs for horsepower while achieving a 65% displacement of diesel with natural gas. This translates into a dramatic and meaningful reduction in fuel costs as our clients can now replace the majority of its diesel with natural gas. At present in Thailand, the cost of diesel ranges between four and six times the cost of natural gas. This conversion aids in our launch of our major bus contract and we are excited about the position of our technology as we head into the new year," concluded Mr. Clancy.

About US Energy Initiatives Corporation (OTCBB: USEI), formed in 1996, operates an ISO-9001 certified electronic manufacturing company and markets the Company's patent dual-fuel diesel to natural gas conversion technology through the automotive aftermarket and through certain original equipment manufacturers. The Company's facilities include a state-of-the-art systems development and testing lab in Atlanta, Georgia and an ISO-9001 certified manufacturing facility in Tampa, Florida.

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 US Energy Initiatives 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:
For US Energy Initiatives Corporation, Tampa
Core Consulting Group
Paul DeRiso
925-465-6088
http://www.usenergyic.com