US Energy Initiatives Corporation (OTCBB: USEI) (the "Company" or "US Energy") today announced that General Motors Thailand (GMTh) reported that GM Asia Pacific has completed the 100,000 kilometer durability test and engine tear down analysis for the Company's dual-fuel C190 Colorado Pickup program. GMTh indicated they plan to offer the Company's dual-fuel, diesel to natural gas conversion system starting in July 2007. US Energy, an ISO certified company, manufacturers a patented dual-fuel, diesel to natural gas conversion system.
As a part of their validation process, GMTh converted a C190 Colorado Pickup which was then driven for 100,000 kilometers. At the end of the test, the engine was torn-down and each part and component was analyzed for wear and tear. The approval means the Company's dual-fuel system had no negative effect on any aspect of the vehicle and is approved by GM Asia Pacific for immediate sale.
GMTh also notified the Company that they plan to market the C190 Colorado Pick-up with the Company's patented dual-fuel system through the 49 countries that constitute the Asia-Pac countries. In addition to Thailand, the Asia-Pac countries include China, Australia, Japan, India, Pakistan and forty-four other countries throughout the Pacific region. Originally, the GMTh program had planned to offer the dual-fuel option only in Thailand. However, based on worldwide demand to use clean-burning, inexpensive natural gas over diesel, GM Asia Pacific has greatly expanded the program launch market.
The Company considers this essential approval validates both the Company's dual-fuel technology and US Energy's original equipment manufacturer (OEM) marketing strategy. GMTh began its technology validation process in June 2005. Following the conversion of several GM vehicles, the validation process concluded with a 100,000 kilometer field trial after which the engine was torn-down and analyzed at the Vehicle Maintenance facility in Bangkok, Thailand and was supervised by GM Asia Pacific Powertrain and Technology Planning. The final approval by GM Asia Pacific means the US Energy dual-fuel technology had no negative effect on any component or aspect of the C190 Colorado Pickup.
The Company's current management team assumed operating control of US Energy during 2004. During that time, the Company established a strategy that focused on dual-fuel system sales through OEMs instead of individual unit conversions or sales through government grants. US Energy's work with GMTh began in June 2005 and has continued in a testing/validation mode since that date. With the Company's technology validated by the world's largest automotive OEM, US Energy's dual-fuel system can take its place as the world's leading choice for diesel to natural gas conversion systems.
"We are pleased to have both our technology and marketing approach receive such strong validation," said US Energy CEO Phil Rappa. "We have the manufacturing capacity to produce and ship up to 500 systems a week through our in-house electronic manufacturing facility in Tampa, Florida. In anticipation of growth beyond 2,000 system sales per month, we are validating several manufacturers that can service our needs," concluded Mr. Rappa.
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