Hybrid Fuel Systems, Inc. Announces Agreement With BAF Technologies For the Sale of 100 Dual Fuel Kits over 12 Months

TAMPA, Fla.--July 19, 2004--Hybrid Fuel Systems, Inc., ("Hybrid" or the "Company") (OTC:HYFS) today announced an agreement with BAF Technologies, Inc. ("BAF") for the sale of 100 dual-fuel, diesel-natural gas conversion kits in New York and Texas.

Under the terms of the Agreement, BAF Technologies has an exclusive right to commercialize the Company's technology in New York and Texas. The Agreement was executed during February 2004 and to date the Company has received orders for the first twenty kits.

"The past six months has been a period of transition for Hybrid," said CEO Mark Clancy. "This agreement for the sale of our kits is the largest single sale for Hybrid in the past twenty-four months. We are excited with the opportunity of commercializing of our technology through industry leaders such as BAF Technologies. BAF adds a significant tier of experience and knowledge to our Company," concluded Mr. Clancy.

About Hybrid Fuel Systems: Hybrid was incorporated in the State of Georgia in 1996 to manufacture and market retrofit systems for the conversion of gasoline and diesel engines, stationary or vehicular, to non-petroleum based fuels such as compressed natural gas and liquefied natural gas. Since 1998, we have dedicated our research and development exclusively to conversion kits for diesel-powered engines. We currently market alternative fuel conversion kits for diesel fuel engines which include a patented device. Our dual fuel conversion technology, utilizing either compressed or liquefied natural gas, has demonstrated diesel vehicles can be successfully and economically retrofitted to utilize natural gas as a dual fuel. No engine modifications are required and vehicles retain the diesel engine qualities of performance, torque, power, and efficiency. On-the-road results indicate diesel fuel consumption can be offset by as much as 85% with natural gas. To learn more about our Company visit our Internet web site at http://www.hybridfuelsystems.com. Since December 2003 Hybrid has been managed and operated by White Knight SST, Inc. Visit the Internet web site of White Knight at http://www.whiteknightsst.com.