US Energy Details World-Wide Dual-Fuel Deployment Forecast for 2007 in Asia, China, Europe and the Domestic United States

TAMPA, Fla.--US Energy Initiatives Corporation ("US Energy" or "the Company") (OTCBB:USEI) an ISO9001-2000 Certified manufacturer of a patent dual-fuel diesel to natural gas conversion system announced the Company's technology deployment launch for the fourth quarter 2006 through 2007. The full details of the Company’s pending launch programs can be viewed through a special pdf power-point presentation on USEI’s internet website titled "Technology Launch Forecast."

“We are pleased to set the stage for our international technology roll-out scheduled for fourth quarter 2006 through 2007,” said USEI CEO Mark Clancy. “We have achieved technology validation among the world’s premier automotive OEMs and we are now poised to launch programs in Asia, China, Europe and the US beginning in the fourth quarter 2006 throughout 2007. Our patent dual-fuel technology is about to take its place on the world’s stage,” concluded Mr. Clancy.

Technology validation – We began technology evaluation with GM Thailand during June 2005. After well over a year and a number of conversions later, GM Thailand selected our dual-fuel technology over all other systems worldwide. Testing confirms our systems are able to replicate the power and torque of the diesel engine while displacing on average 60-65% displacement of diesel with natural gas. This success not only led to further inquiries from other OEMs but is a third-party acceptance reaffirming the claims of our technology.

Available inventory – During the past sixty days we have stock-piled an inventory of systems to meet the near-term anticipated requirements to ensure we have no delays due to component part availability. As we place these units in the field, we have selected a family of component vendors to ensure our delivery schedule remains on track.

Initial Technology Roll-Out

Asia - General Motors Thailand – Our launch with GMTH begins with an appearance at the Truck and Bus Expo in Bangkok Thailand during early November. Following this introduction to the Asian marketplace, GMTH will begin offering their C-190 Colorado Pick-up with dual-fuel option through the 85 dealerships spread throughout Thailand. Should each dealership sell on average ½ system per month, we would exceed our first-year annual volume objectives. The price of diesel in Thailand is approximately $2.60 a gallon while the price of natural gas is approximately $0.80 a gallon equivalent.

Asia – PS Gas Company Ltd – We received the engine shipped from Thailand by PS Gas in early October and we are on track to deliver the first conversions during November. We will then return to Thailand during December and begin the conversion of 10,000 buses over a five year period. As we ramp up the PS Gas project, we would anticipate achieving an average rate of over 100+ conversions per month to meet our goal. The price of diesel in Thailand is approximately $2.60 a gallon while the price of natural gas is approximately $0.80 a gallon equivalent.

China – WeiChai Peterson – Our sub-licensee for China, US-based WITCO Intl has executed a supplier agreement with WeiChai based on the system we developed for their engine during the first quarter 2006. The team at WITCO will be returning during October and we will join WITCO during December 2006 in China to make final systems adjustments. We anticipate launching our China-initiative during early to mid 2007.

Europe – TruckGas – Our sub-licensee TruckGas is slated to field-test and launch our technology beginning in early 2007. We have now selected the first candidate engine platforms and will begin final development work in mid- late November 2006. TruckGas has reported to USEI the price of diesel in Europe is approximately $10 a gallon while the price of natural gas is approximately $2.30 a gallon-equivalent.

Domestic United States – We have three domestic US programs scheduled for launch in early 2007. In the mean time, we will continue converting vehicles for the State of New York through our sub-licensee BAF Technologies. Snow plows and school buses are the typical application.

Channeling wasted methane: Taking a page from the EPA, we are launching a program to channel the methane produced in mining operations to power a host of diesel vehicles used in their operations. While we do not have the wide price disparity in diesel compared to natural gas in the US as we have as a price driver in other parts of the world, the methane produced by these mines is typically flared and can be compressed and delivered for use at a fraction of the current cost of diesel.

Duramax 6.6L roll-out: We are now finalizing a dual-fuel system for the new and popular GM Duramax engine. Following our EPA certification, we envision delivering this new precision dual-fuel system to the market place during the first quarter 2007.

Municipality infrastructure build-out: We have been selected to participate in a program with a municipality in New York wherein we will provide the conversion technology, a local gas provider will install and service refill stations and the municipality enjoys the benefits of clean-burning natural gas. In this scenario, the costs of the project are borne in part by the federal government and in part by the gas utility. Once we’ve completed the first project, we will have formulated a template that can be replicated throughout the US to aid in natural gas infrastructure build-out.

“We intend to provide periodic updates on our progress for each of these exciting launch programs as they progress,” said USEI CEO Mark Clancy. “We appreciate the confidence of our many clients and the support of our shareholders as we take our place as a world-leader in state-of-the-art dual-fuel technology,” concluded Mr. Clancy.

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.