SOURCE: US Energy Initiatives Corporation

January 16, 2007 09:31 ET

US Energy Initiatives Municipal Bus Program Field Trials Commence January 2007

TAMPA, FL -- (MARKET WIRE) -- January 16, 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 scheduling of final field trials in Thailand for the recently announced system designed for the Mercedes OM422 engine. The field trials relate to the Company's five-year contract valued at $54,000,000 to install its patent dual-fuel diesel to natural gas system primarily for the bus industry throughout the country of Thailand.

"As reported in December, the conversion system we designed at the Company's PeachTree City development facility for the OM422 achieved a 65% fuel displacement of diesel with natural gas without any loss in power or torque," said USEI CEO Mark Clancy. "We are now scheduled to install our system in the field during January directly with our client in Thailand. We anticipate a two to four week field trial followed by the deployment of our technology against the $54,000,000 contract signed during November. We will provide further updates on this critical program as we progress. In addition to our previously announced OEM program, we anticipate adding two new international OEMs during the course of 2007. While our international prospects are very encouraging, we look forward to discussing our domestic initiatives within the next week," concluded Mr. Clancy.

About US Energy Initiatives Corporation (OTCBB: USEI)

US Energy, 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.

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