Hybrid Fuel Systems Retains Lagano & Associates for Strategic Communications; Maximizing Shareholder Value to be Primary Initiative

TEMPLE TERRACE, Fla.--Oct. 4, 2004--Hybrid Fuel Systems (OTCBB:HYFS), a developer and manufacturer of dual fuel conversion systems, today announced that it has retained Lagano & Associates, Inc. (L&A), headquartered in Clearwater, as a strategic advisor to focus on investor relations, public relations and corporate communications.

Mark Clancy, Chief Executive Officer, commented, "L&A will be an integral part of our team as we concentrate on creating market awareness."

Pam Lagano, President, L&A commented, "I am impressed with the success Hybrid has with their dual fuel conversion systems. This new assignment draws on the firm's full scope of strategically-focused and integrated corporate communication and investor relations services, including financial communications, corporate media relations, and event management services."

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 Mark Clancy or visit the Company's website at http://www.hybridfuelsystems.com.

Hybrid's technology converts diesel engines to a "dual fuel" mode that replaces about 80% of the diesel fuel with natural gas. HFS systems rely upon an engine computer to start the engine with diesel fuel and inject more natural gas and cut back on diesel as the engine speed and load increases. Hybrid markets alternative fuel conversion kits for diesel fuel engines based on a family of patents covering 99 specific claims. The Company's unique, non-invasive system encompasses the hardware and an electronic control unit. Utilizing natural gas, the dual fuel conversion technology has demonstrated that diesel vehicles can be successfully and economically retrofitted. Engine modifications are not required and vehicles retain the diesel engine qualities of performance, torque, power, and efficiency. When operating with natural gas, Hybrid's system has proven to significantly reduce CO2 greenhouse gas and NOx emissions. Since the system is generic, it can be applied to various diesel engine vehicles in a fleet.

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.