Hybrid Fuel Announces a Series of Technology Demonstrations In Bolivia

TAMPA, Fla.--July 20, 2004--Hybrid Fuel Systems, Inc., ("HYFS" or "the Company") (OTC:HYFS) today announced plans to conduct a series of product demonstrations in the country of Bolivia during August and September 2004. Tentatively the Company plans to conduct the demonstrations in La Paz, Cochabamba and Santa Cruz, Bolivia.

"We adopted three priorities to establish a footprint in foreign markets," said CEO Mark Clancy. "Our priorities include availability and access to natural gas and favorable economic factors relating to the manufacture of our kits and in-the-tank price of diesel fuel."

During the month of June the Company launched a four-week campaign targeting the South American region. A copy of Hybrid's four product bulletins are available on the Company's Internet website. In response to customer inquires, the Company is scheduling three demonstrations within the nation of Bolivia during August and September 2004. The nation of Bolivia exceeds Hybrid's minimum criteria in two respects: recent large-scale discoveries during the past several years of natural gas have reduced the local price to approximately $0.50 per diesel-gallon equivalent and the cost of in-the-tank diesel in Bolivia is approximately $1.40 per gallon. The Company has determined that its dual-fuel kits can be manufactured in South America at costs which allow for competitive pricing. The Company's information indicates that as of October 2003, 15,486 vehicles had been converted and there were a total of 42 filling stations with six more under construction in Bolivia. This is contrasted against the neighboring country of Argentina with 1,107,140 vehicles converted and 1,134 refueling stations.

Two of the demonstrations will be in Cochabamba and Santa Cruz. Both are held in connection with private companies which combined could represent the sale of up to 700 of our dual-fuel diesel-natural gas conversion kits. These demonstrations are being fully paid by the hosts including the costs of equipment and the appearance of our team-members.

"Together with our previously announced agreements with BAF Technologies and DRV Energy in the domestic marketplace, we are excited about establishing a foreign beachhead in a region of the world where natural gas is both plentiful and cost effective," 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 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.