US Energy Initiatives Provides Corporate Update; System Sales and Revenue Guidance for the Third and Fourth Quarter 2006

TAMPA, Fla.--June 19, 2006--US Energy Initiatives Corporation (OTCBB:USEI) (the "Company," "we", "our" or "US Energy"), manufacturer of a patent dual fuel delivery system, today provided the following corporate update. The current management team joined US Energy during January 2004. 2004 was dedicated to solving a series of corporate legacy issues created between 1996 and year end 2003 and to develop our strategy to deliver our patent dual fuel technology. Our strategy had a long-term goal and includes three primary near-term objectives designed to achieve our corporate goal.

Our long-term goal is to build a company able to commercialize promising energy related technologies. Our near-term objectives to achieve our goals were three-fold: First, to deliver our system to the consumer through the original equipment manufacturer (OEM) network. Second, to target aftermarket sales of our systems in locations where the price differential between diesel and natural gas can work as a sales-driver. Finally, to support the commercialization of our technology with a turn-key manufacturing division competent in electronics and metal work. "I am pleased to report we have made tangible progress toward our corporate goal through inroads into our three near-term objectives," said US Energy CEO Mark Clancy.

OEM objective: We recently announced an agreement with General Motors (GM) to provide our system for their CNG program in Thailand. Our schedule indicates our first deliverable will be in November 2006. The awarding of this program by the world's largest automotive OEM is the culmination of year's work with development occurring in our facility in Atlanta and installations performed in Thailand. We also recently announced we had completed systems development for Daewoo Motors through an agreement with US-based Natural Gas Vehicle Institute.

Aftermarket objective: We recently executed an agreement with Greengas, a six-year old Thai company for the sale of 1,500 systems with a minimum deliverables schedule of 500 systems this calendar year and 1,000 systems during 2007. We've positioned ourselves in Thailand with a strong partner based on our research into the Thai automotive industry coupled with the ground work performed by Greengas during these past six years. We have a second aftermarket project which we intend to publicly disclose during our conference call scheduled for Thursday from 1:00 to 3:00PM. The second aftermarket project covers the European theatre and together with our presence in Asia, will provide a global pathway for our technology.

Turn-key electronic and metal manufacturing: We've recently announced the acquisition of a majority interest in Automated Engineering Corporation (AEC). We are now the managing operators of this well-run company and the strategic advantages to our business purpose includes a lower cost of goods and an increase in control over deliverables timing and quality for our core components used with our patent system. Additionally, the manufacturing division plays a key role in the Company's ability to attract and commercialize new and promising energy technologies.

We now look toward the third and fourth quarter 2006; we anticipate that we will ship 100 systems during the third quarter and ramp up to 700 systems during the fourth quarter. Together with revenues generated from our manufacturing activities, we anticipate third quarter revenues of approximately $660,000 and fourth quarter revenues of approximately $1,600,000.

About US Energy Initiatives Corporation. US Energy Initiatives Corporation (OTCBB:USEI), formed in 1996, delivers its patent dual-fuel diesel to natural gas conversion technology directly to domestic and international original equipment manufacturers. The Company's current clients include 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. For more information contact CEO Mark Clancy at the Company's corporate headquarters @ 813-287-5787 or visit the Company's web site at http://www.usenergyic.com.

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. 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 US Energy Initiatives 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.