SOURCE: US Energy Initiatives Corporation

March 29, 2007 07:34 ET

US Energy Initiatives Receives Purchase Order for 100 Hybrid Fuel Systems

Phil Rappa Promoted to Chief Executive Officer

TAMPA, FL -- (MARKET WIRE) -- March 29, 2007 -- US Energy Initiatives Corporation (OTCBB: USEI) ("US Energy" or the "Company"), today announced receipt of a purchase order for the sale of 100 Hybrid Fuel Systems to the Company's sub-licensee WITCO Intl. for deployment in China. The Company also announced the appointment of Phillip Rappa as Chief Executive Officer. US Energy is an ISO9000 manufacturer of a patent dual-fuel diesel to natural gas conversion system referred to as the Hybrid Fuel System.

WITCO Intl. is a wholly owned subsidiary of Wisconsin-based WITCO Systems (established in 1949). WITCO Intl. is a global marketing and technology company, specializing in alternative fuel and energy systems and is the exclusive sub-licensee for the USEI's patent dual-fuel technology in China and parts of Asia. The Purchase Order specifies 100 of the Weichai WD615 320 horse-power Hybrid System for a total purchase of $310,000. Delivery is to begin during April and the systems will be deployed through WITCO's Hong Kong office. WITCO opened their Hong Kong office in 2005 and appointed Ms. Chun Greuel as Chief Operating Officer for China and Asia and have assigned installation engineers and support staff to further WITCO's China/Asia initiative.

In addition, the Company promoted Phillip Rappa from Chief Operating Officer to Chief Executive Officer effective April 1, 2007. Mr. Rappa had previously served as the President of the Company's subsidiary Automated Engineering Corporation (AEC) and since December 2006, has served as the Chief Operating Officer and General Manager. "It is with great personal and professional pleasure that in my capacity as a Board Member to vote strongly in favor of promoting Phil to the role as the Chief Executive of USEI," said the Company's CEO Mark Clancy. "The Company was founded in 1996 and we were engaged during January 2004 to create a framework for future success. The next six to twelve months will be critical in determining if our efforts and financing were effectively implemented. For that reason, as a Board of Directors, the time is right to bring a strong, seasoned operating professional with extensive international experience to steer our Company during this final and most important part of our program. In our opinion, Phil Rappa posses those unique qualities of experience, perseverance and professionalism that are essential to effective leadership," concluded Mr. Clancy. Mr. Clancy will remain as a Member of the Board of Directors and advisor to the Company.

Chairman of the Board and majority shareholder John Stanton said, "We thank Mark for his strong leadership and many accomplishments during the past three year period and we look forward to Phil Rappa assuming his new role. The Company is now well positioned to spring forward into a corporation respected worldwide as an industry leader. We are confident Phil Rappa can continue the tradition of strong leadership and accomplishment."

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.

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