US Energy Initiatives Receives PSGas Company Engine and Initiates System Finalization

TAMPA, Fla.--US Energy Initiatives Corporation ("US Energy" or "the Company") (OTCBB:USEI) ISO9001-2000 Certified manufacturer of a patent dual-fuel diesel to natural gas conversion system announced receipt at the Company's Peachtree City, Georgia location of primary engine to be used in fulfillment of the recently announced $54,000,000 contract to convert 10,000 buses over five years.

The Company is scheduled to complete engineering and calibrations by early November and complete the first conversion in time to showcase USEI's patent technology at a major auto show in Bangkok, Thailand on the 30th of November. Following the auto show, the Company anticipates the first deliverables for the PSGas agreement will be in December 2006.

"We have a very busy fourth quarter ahead," said USEI CEO Mark Clancy. "We will be shipping five systems to General Motors Thailand for their showroom vehicles in early November because their program launch is December 4, 2006. At the same time, we will be completing the first PSGas conversion mid-November for appearance at the auto show followed by the first deliverable during December. Launching these two programs during the November/December 2006 time frame positions USEI to post its first profitable month in December with strong momentum going into 2007. We appreciate the continued support of our shareholders and we are looking forward with great enthusiasm to taking our place as a world leader in alternative fuel technology," concluded Mr. Clancy.

About US Energy Initiatives Corporation (OTCBB:USEI), formed in 1996, manufactures and markets its patent dual-fuel diesel to natural gas conversion technology though the automotive aftermarket and through certain original equipment manufacturers. The Company's primary facility is a state-of-the-art systems development and emission testing lab in Atlanta, Georgia. The Company's current clients include General Motors (NYSE:GM), http://www.gm.com; United Parcel Service (NYSE:UPS), 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 General Motors Thailand (GMTH) - General Motors Thailand is a wholly owned subsidiary of General Motors Corporation, the world's largest automotive company. GM brands include Buick, Cadillac, Chevrolet, GMC, Hummer, Holden, Oldsmobile, Opel, Pontiac, Saturn, Saab and Vauxhall. In addition, GM has equity interests and strategic relationships with GM DAT (42%), Fiat (20%), Isuzu (12%), Subaru (20%) and Suzuki (20%).

About PSGas: PSGas was formed in 2006 specifically to address the conversion of buses from diesel to NGV. It has partnered with PTT (the distributor of CNG in Thailand), Kasikorn Bank, a leading Thai Bank that will provide secure financial packages to the bus fleet owners, and Thai Transport Co Ltd, a leading bus operator in Thailand. PSGas has commissioned a new modern bus engine and conversion workshop with experienced diesel engineers from Germany and Thailand. This facility will handle 10 conversions at a time and have a roll-out capacity of 30 buses per week. Further workshops are planned for other regions as the infrastructure and refueling capacity is improved. PSGas expect to have a capacity to convert 100 buses per week by end 2007.

For more information contact Paul DeRiso, Core Consulting Group at 925-465-6088 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.