US Energy Completes Daewoo Dual-Fuel System; Joint Program with US Based Natural Gas Vehicle Institute

TAMPA, Fla.--May 24, 2006--US Energy Initiatives Corporation ("US Energy" or the "Company"), manufacturer of a patent dual-fuel diesel to natural gas conversion technology, today announced on-site activation of the Daewoo WD6L engine at the Natural Gas Vehicle Institute (NGVI) facility.

"The Daewoo system was put on a developmental fast-track at the request of our client, US-based NGVI," said US Energy CEO Mark Clancy. "We completed our field installations with our chief programmer in Korea ensuring the system was running smoothly. NGVI has notified us that they intend to follow-up the successful Daewoo conversion with a Hyndai 13 liter and a Daewoo 15 liter. We are very excited about our relationship with an international presence such as NGVI. Both Daewoo and Hyndai are engaging our Company as the direct result of the efforts made by the NGVI to further the use of natural gas worldwide," concluded Mr. Clancy.

Among the markets where NGVI has existing client relationships is Korea. Korea has 5 million diesel vehicles out of 15 million total vehicle population. The size of South Korean land is smaller than the State of Kentucky and is surrounded by oceans and by North Korea. There are 3 million diesel cargo vehicles out of 5 million diesels which are a portion of the target market of NGVI to be converted to natural gas vehicles by the year of 2020. Korea is the second largest importer of LNG in the world after Japan. The Korean fuel price of diesel is U$ 1.20/liter while that of CNG is only U$ 0.54/liter. Korea has five billion US dollars of government budget allocated to be spent during the next 10 years through Seoul Metro Clean Air Project for after-market conversions and after-treatment of the diesel vehicles.

About US Energy Initiatives Corporation (OTCBB:HYFS): US Energy was formed in 1996 to deliver its patent dual-fuel diesel to natural gas conversion technology. The Company's primary facility is a 12,000 square foot state-of-the-art systems development and emission testing lab in Atlanta, Georgia. The Company's current clients include Natural Gas Vehicle Institute, http://www.ngvi.com; General Motors , http://www.gm.com; United Parcel Service , http://www.ups.com; US Postal Service; Dallas County School System, Portland, Oregon School System; Oklahoma Natural Gas and a host of private purchasers.

About the Natural Gas Vehicle Institute - The Natural Gas Vehicle Institute is North America's leading provider of training and consulting services on subjects related to natural gas as an alternative vehicle fuel. NGVI's services and programs address the full range of alternative vehicle fuel issues -- from building and maintaining a fueling station to adding NGVs to your fleet to mapping a Clean Cities Program. The Natural Gas Vehicle Institute provides natural gas vehicle education, training, consulting and technical assistance to vehicle manufacturers, fuel retailers, utilities, NGV users, consultants, equipment manufacturers and suppliers, government and other industry stakeholders. NGVI's training is officially endorsed by the Natural Gas Vehicle Coalition.