Newsletter

April 26, 2006

Volume VII, Issue 34

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To OTC Journal Members:

US Energy (OTC BB: HYFS) Loves NY

Mets or Yankees? Jets or Giants? Islanders or Rangers? Theater or Shopping? Wall Street or Broadway? It doesn't matter. Today I love them all because NY loves HYFS.

I happen to be in NY this week on a combination business/pleasure trip, and NY has been great.

NY is also great to HYFSas the State Of NY just placed an order for 11 conversion systems. The systems will allow NY to convert 11 diesel engines to combination diesel/natural gas. Once installed, the system will allow the diesel engines to burn cheaper and cleaner, while sacrificing little or no power.

Depending on the engine and the amount of usage, NY will get a full return on their investment in fuel cost savings over the next 8 to 12 months, and that's if diesel fuel stays at the current level.

The dollar amount of the order is only about $50,000, but the credibility it lends to the technology will be far more important in the market's eyes. As the system's use becomes more widespread, look for initial orders to be followed by larger orders.

HYFS traded to a new multi month high briefly today, and the pulled back slightly. I put the blue horizontal line in the chart to show today's brief breach to the new high.

The two angled blue lines represent support levels. Note the shallow slope of the first, and the steepening angle of the second. The move up in this stock is accelerating.

HYFS traded nearly 1 million shares today on a fairly lackluster day in the markets, suggesting there are plenty of investors following the company's progress.

It's tough to say where we'll end up over the next few days, but I am quite sure HYFS will break out cleanly in the morning. I would be very surprised if we don't see the stock trade to the $.40 mark tomorrow. I just don't know if it will hold.

Like I said- right idea at the right time. If you got in early at the $.29 to $.30 level, tomorrow you should be closing in on a 30% to 40% profit. However, it is way too early in this process to even think about cashing in. The fun is just getting started.

Here is the complete text of the news release for your review:

Press Release Source: US Energy Initiatives Corporation

US Energy Initiatives Corporation Awarded Contract for $49,500 to Convert New York State Vehicles

Wednesday April 26, 4:05 pm ET

Hybrid Fuel Technology Converts Engine from Diesel to Clean Burning Natural Gas

TAMPA, Fla.--(BUSINESS WIRE)--April 26, 2006--US Energy Initiatives Corporation ("US Energy" or the "Company") (OTCBB:HYFS - News), a manufacturer of a patent dual-fuel diesel to natural gas conversion technology, today announced the Company had received a contract for $49,500 to install an additional eleven systems for the State of New York Department of Transportation.

"With this order, we are pleased to expand the number of systems we've installed for the State of New York," said CEO Mark Clancy. "A part of our mission statement is 'to reduce toxic pollutants' and we are grateful for the opportunity to replace diesel with clean burning, economical natural gas. In today's energy marketplace, the use of natural gas instead of diesel can have a meaningful economic advantage while simultaneously reducing the most harmful pollutants," concluded Mr. Clancy.

The contract was made possible through BAF Technologies, US Energy's sub-licensee for the States of New York and Texas and funding provided through the New York State Energy Research and Development Authority (NYSERDA).

About US Energy Initiatives Corporation. (OTCBB:HYFS - News), formed in 1996, delivers its patent dual-fuel diesel to natural gas conversion technology and resells a portfolio of gasoline to natural gas and propane conversion systems through both Company-owned and franchised service centers in twelve states and directly to domestic and international original equipment manufacturers. 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 General Motors (NYSE:GM - News), http://www.gm.com; United Parcel Service (NYSE:UPS - News), 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.

About BAF Technologies - BAF Technologies is the premier provider of natural gas and propane vehicle upfits. Founded in 1992, and headquartered in Dallas, Texas, the company supports global clients with alternative fuel systems (both LPG and CNG), application engineering, technical training, service parts, technical consulting, research and development, design, and engineered products. During the past decade, the company has been the leader in marketing and systems integration for niche markets within the AFV industry. To learn more about or to inquire about BAF's offerings, please visit http://www.BAFtechnologies.com.

About The New York State Energy Research and Development Authority (NYSERDA). NYSERDA is a public benefit corporation created in 1975 by the New York State Legislature. NYSERDA administers the New York Energy $mart(SM) program, which is designed to support certain public benefit programs during the transition to a more competitive electricity market. Some 2,700 projects in 40 programs are funded by a charge on the electricity transmitted and distributed by the State's investor-owned utilities. The New York Energy $mart(SM) program provides energy efficiency services, including those directed at the low-income sector, research and development, and environmental protection activities.

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.

Contact:

US Energy Initiatives Corporation, Tampa
Mark Clancy, 813-287-5787

Source: US Energy Initiatives Corporation

Comments in the BLOG

Hopefully some of you caught yesterday's first BLOG entry on new idea US Energy (HYFS) and acted on it. I believe you are going to be rewarded if you did so in tomorrow's action. I showed a current chart and predicted this stock was likely to explode with major contract announcements in today's market environment. Sometimes I have the right idea at the wrong time. Sometimes I have the wrong idea at the right time. Early indications, thanks to the current oil price obsession in the markets, would suggest HYFS is the right idea at the right time. Just give us the confirmation this is for real by inking sales, and it will be off to the races for this little stock. Just our good luck, the company delivered today. Read this edition for details, and go to the BLOG with questions and comments.

To use the BLOG, simply go to the home page at www.otcjournal.com - the BLOG will scroll down automatically on the right side of your screen. The most current journal entries appear in the middle of your screen. Check back frequently for updates particularly when stocks are moving to overbought or oversold levels in volatile markets.

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The OTCjournal.com Newsletter is an independent electronic publication committed to providing our readers with factual information on selected publicly traded companies. All companies are chosen on the basis of certain financial analysis and other pertinent criteria with a view toward maximizing the upside potential for investors while minimizing the downside risk, whenever possible. Moreover, as detailed below, this publication accepts compensation from certain of the companies which it features. Likewise, this newsletter is owned by MarketByte, LLC. To the degrees enumerated herein, this newsletter should not be regarded as an independent publication.

Go Here to view our compensation on every company we have ever covered, or visit the following web address: http://www.otcjournal.com/disclaimer.html for our full profiles and http://www.otcjournal.com/trading-alerts/disclaimer.html for Trading Alerts. MarketByte LLC has been paid a fee of $45,000 and 400,000 newly issued, restricted shares by US Energy Initiatives for coverage of the company.

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