Hybrid Fuel Systems Executes Sub-Licensing Agreement with UK Based BPM Diesel Engineering

TAMPA, Fla.--Nov. 2, 20052, 2005--Hybrid Fuel Systems, Inc. ("Hybrid" or the "Company") (OTCBB:HYFS) today announced the Company concluded an exclusive sub-license agreement with BPM Diesel Engineering ("BPM"). BPM is headquartered in Worcestershire, England. Hybrid is engaged in the automotive aftermarket through developing and commercializing systems which convert diesel and gasoline engines to operate on natural gas and propane. Under the terms of the license agreement, BPM is the exclusive representative for Hybrid's technology throughout the United Kingdom. BPM is required to purchase at least 25 systems annually in order to maintain their exclusivity.

"The success of our technology in the aftermarket is largely dependent upon aligning ourselves with the best technicians and firms in our industry," said Hybrid CEO Mark Clancy. "BPM and its Managing Director Mr. McCooey have exceeded our expectations for integrity, quality and reliability. This marks our second international sub-license and we're already experiencing the benefits of these relationships. Our sub-license with WITCO Ltd. has resulted in a current systems development project for a major Chinese OEM underway at our facility in Atlanta, Georgia. Under our sub-license with BPM, we're now shipping systems directly to England for installation at their facility. This is a good example of our two pronged marketing strategy which envisions we can reach the consumer both through the OEM as well as through direct sales," concluded Mr. Clancy.

"BPM has been working with Hybrid for several years and during the past year, we have jointly been running a field test of the system here in the United Kingdom," said Mr. Barry McCooey, Managing Director of BPM. "During September, 2004, we converted an ERF ECX 6X2 tractor. In the field, the converted vehicle has proven as reliable as the dedicated diesel and our fuel displacement rate has ranged from 50% to 60% over a wide range of duty cycles and load. We are pleased to formalize our relationship with Hybrid and we're excited about the potential of the Company's technology."

About Hybrid Fuel Systems - Hybrid is engaged in the automotive aftermarket through developing and commercializing systems which convert diesel and gasoline engines to operate on natural gas and propane. The Company's principal technology is embodied in five US Patents and several foreign patents pending licensed to Hybrid on a worldwide exclusive basis. The Company also resells medium and lightweight vehicle conversion systems under an agreement with ECO Fuels, Inc. and resells and services alternative fuel filling stations. The Company markets its product line directly to OEMs as well as to consumers through a multi-state network of installation and service centers.

For information at the Company, contact CEO Mark Clancy at the Company's corporate headquarters at 813-979-9222 or by cellular phone at 813-624-5515 or visit the Company's web site at http://www.hybridfuelsystems.com.