SOURCE: US Energy Initiatives Corporation

March 28, 2007 06:49 ET

US Energy's Hybrid System Replaces 87% of Diesel With Natural Gas

International Letter of Credit in Place for Thailand System Sales

TAMPA, FL -- (MARKET WIRE) -- March 28, 2007 -- US Energy Initiatives Corporation (OTCBB: USEI) ("US Energy" or the "Company") today reported the Company's results of a fuel displacement test and finalization of an international letter of credit for system sales in Thailand. US Energy is an ISO-9001 Certified manufacturer of a patent dual-fuel diesel to natural gas technology.

In a major validation of the Company's Hybrid Fuel System, a fuel consumption test demonstrated the ability to replace over 87% of diesel with natural gas. The vehicle used for the consumption test was a GM C190 Colorado Pickup using an Isuzu 2.5 liter engine. As previously announced, the Company is engaged in a program with GM-Thailand to provide our dual fuel system for their C190 Colorado Pickup for model years 2007, 2008 and 2009. The vehicle route was a 162-mile trip. In a diesel mode, the 162 miles used a total of 16.029 gallons of diesel fuel. In a dual fuel mode, the vehicle consumed 1.97 gallons of diesel fuel. The 87.70% of diesel fuel eliminated was replaced by clean burning compressed natural gas. The Company is unaware of any dual-fuel systems able to achieve this level of fuel displacement.

The Company also confirmed receipt of its first international letter of credit relating to the sale of its Hybrid Fuel System in Asia. This letter of credit is put in place to cover the delivery of the first 15 systems earmarked for a taxi company with over 3,800 vehicles. The terms of the international letter of credit allow the Company to draw down the funds forty-eight hours following shipment. The international letter of credit is the means used by the Company to ensure payment of systems shipped to locations outside the Continental United States.

"We are pleased with this cost-saving validation of our technology," said USEI CEO Mark Clancy. "The ability to eliminate over 85% of a dirty, expensive diesel fuel with clean burning, relatively inexpensive natural gas clearly separates our technology from any other. We are equally pleased in demonstrating how we plan to ensure payment for our foreign sales with this first international letter of credit. We will be providing an update on Thursday relating to our domestic Smart Muffler program as well as the first sizeable purchase order for sales in China," 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