Hybrid Fuel Systems Cleared to OTC Bulletin Board and Announces the Company's No School Bus Left Behind Initiative-TM-

TAMPA, Fla.--Nov. 3, 20040, 2004--Hybrid Fuel Systems, Inc., (OTCBB:HYFS) (the "Company" or "Hybrid") today announced the NASD has cleared U. S. Capital Partners, Inc. application to trade the Company's common stock on the over-the-counter bulletin board ("OTCBB").

"This past year has been one of significant progress for Hybrid," said the Company's CEO Mark Clancy. "Earlier this year we began the process to verify our technology as an Emission Control Device to open up the domestic marketplace. We've reported the results to date in our recent federal securities filings. Simultaneously, we have beta units operating on dump trucks in Dallas, Texas, snow plows in New York and several field operations in the United Kingdom. As described in our third quarter report, we have reduced liabilities from approximately $2,400,000 to just over $900,000 and eliminated all related party debts. While there is much work left to do, this clearance for our securities is another accomplishment in a year of many milestones for our Company," concluded Mr. Clancy.

The Company also unveiled a sales initiative for 2005 trademarked "No School Bus Left Behind Initiative(TM)." No School Bus Left Behind Initiative(TM) is a total emission control/monitoring program under which Hybrid proposes to convert school buses with the Company's Fuel 2(TM) non-invasive patent conversion technology and followed-up with quarterly emission audits to ensure the highest level of pollution reductions are maintained "There is a growing body of evidence which strongly suggests school bus diesel emissions pose a significant health concern for our children," said CEO Mark Clancy. "Previously, the only answer to reducing harmful pollutants from school bus emissions were catalytic converters, traps and other similar aftermarket products which do not provide an economic benefit. With the upward price pressures on diesel fuel and the relative stable pricing of natural gas our Fuel 2(TM) conversion kit is the first emission control technology which actually results in a fuel savings for our customers. Our initial target market for the No School Bus Left Behind Initiative(TM) is the approximately 18,000 Florida-based school buses," concluded Mr. Clancy.

Hybrid was formed in 1996 to commercialize retrofit systems for the conversion of diesel stationary or vehicular engines to non-petroleum based fuels such as natural gas. The Company's technology is based on five patents and one patent pending. For more information contact CEO Mark Clancy or visit the Company's website at http://www.hybridfuelsystems.com.

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 (the Act). 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 Hybrid 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.