Hybrid Fuel Systems and WITCO International Finalize Exclusive Sub License Agreement for China and India

TAMPA, Fla.--Aug. 4, 2005--Hybrid Fuel Systems, Inc. (OTCBB:HYFS) ("Hybrid" or "the Company") today executed the final exclusive sub-license agreement with WITCO International Ltd. ("WITCO") for the countries of China and India. Hybrid commercializes a family of conversion systems enabling light, medium or heavy gasoline or diesel engines to displace up to 80% of conventional fuel with natural gas or propane. The final sub-license agreement expanded from the previously announced letter of principal.

Under the terms of the exclusive sub-license agreement, WITCO shall acquire for resale Hybrid's Fuel2 systems at the minimum rate of 100 during the first twelve months; 500 during the second twelve months, and; 1,000 systems per year for the remaining 13 years of the fifteen year agreement. During the period of the license, WITCO shall arrange for in-country production of system components and shall be responsible for installation, service and support in China and India. Hybrid will produce the patent electronic control unit (ECU) and will be responsible for system development, calibration and training.

Upon executing the letter of principal during May, 2005, WITCO culminated a three year program in China through securing Memorandums of Understanding with five original equipment manufactures. These OEMs serve the bus, truck, stationary and construction equipment markets in China and under the terms of the MOUs, some of OEM may ship their engine or vehicle to Hybrid's Atlanta, Georgia facility for system development and calibration. Once developed, Hybrid shall provide a field version of the system to be installed and tested on site at the OEM's facilities. The first OEM engine is scheduled for delivery to Hybrid's facilities during August 2005.

About WITCO International Ltd.: WITCO is a wholly-owned subsidiary of WITCO Systems, Inc., a 50-year old Wisconsin based US Corporation. Since 1986, WITCO Systems has been engaged in the conversion of various gasoline engines to operate on natural gas. WITCO Systems is the largest dealer of Daewoo Forklifts in North America and has represented companies abroad in France, Japan, Canada, Ireland and Sweden. Between May - July 2005, WITCO entered a series of Memorandums of Understanding with five China-based OEM's to develop and market dual fuel systems. On August 3, 2005, WITCO executed a 15-year exclusive sub-license agreement to commercialize Hybrid's patent dual-fuel systems throughout China and India.

About Hybrid Fuel Systems, Inc. With locations in Atlanta, Georgia, Tampa, Florida and Oklahoma City, Oklahoma, Hybrid is a small volume manufacture of EPA Certified bi-fuel and dedicated natural gas and propane turnkey conversion systems. The systems are installed in light- and medium- and heavy-duty vehicles in private fleets and governmental agencies. The Company continues to develop and certify various transportation platforms to meet EPA requirements. Hybrid has a full service alternative fuels center with slow/fast fill stations as well as compressor installation and maintenance capabilities.