SOURCE: US Energy Initiatives Corporation

January 10, 2007 09:14 ET

US Energy Initiatives Cancels Reverse Stock Split

TAMPA, FL -- (MARKET WIRE) -- January 10, 2007 -- US Energy Initiatives Corporation ("US Energy" or the "Company") (OTCBB: USEI), an ISO-9001 certified manufacturer of a patent dual-fuel system, today announced the Company has cancelled its plans for a reverse split of its common stock.

"Given an evaluation of a number of factors and our outlook for 2007 and 2008, we have determined a reverse split of our stock is not necessary," said USEI CEO Mark Clancy. Specifically, the Company considered the following: (i) the growing industry acceptance of our technology; (ii) our current slate of previously announced projects particularly in Thailand; (iii) a new domestic initiative we intend to unveil before the end of January; (iv) our revenue trends with a rate of growth we believe is consistent with our outlook for 2007 and 2008; (v) growth in our electronic manufacturing subsidiary; (vi) improvements in our technology which will simplify installation and provide for a higher state of end-user reliability, and; (vii) an evaluation of companies operating within the alternative fuels industry.

"Our objectives for 2007 include primarily reaching a state of operational profitability, launching a domestic program and expanding the deployment of our technology in foreign markets," said Mr. Clancy. "To immediately attack our primary objective of profitability, under the leadership of our Chief Operating Officer Phil Rappa, during December we implemented a detailed evaluation of every facet of our enterprise and implemented a number of cost savings measures which we believe will impact our cost of operations as early as the first quarter. Against these objectives, we will provide an update to our operations and revenue outlook during the coming weeks," concluded Mr. Clancy.

About US Energy Initiatives Corporation (OTCBB: USEI)

US Energy, formed in 1996, commercializes a 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 PeachTree City, 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 Information