U.S. Energy Systems Reports Board Appointments and Provides Notice of Special Meeting...

U.S. Energy Systems Reports Board Appointments and Provides Notice of Special
Meeting of Stockholders

AVON, Conn., Jan. 22 /PRNewswire-FirstCall/ -- U.S. Energy Systems, Inc.
(Pink Sheets: USEY) today reported that its Board of Directors has elected
Bernard J. Zahren, Joseph P. Reynolds and Richard J. Augustine as Directors,
and that Robert A. Schneider has resigned from the Board.
Mr. Zahren, who will serve as Chairman of the Board's Audit Committee, has
been the Chief Executive Officer of Zahren Financial Company, LLC ("Zahren
Financial"), a consulting company in energy and related fields, since 2002.
From 2002 to 2005 he also had a controlling interest in Domani, LLC, an
international consulting company focused on business initiatives in the carbon
management, climate change and renewable energy sectors. Mr. Zahren served as
Chief Executive Officer of USEY and as a Director from May 2001 to July 2002.
Prior to his service with USEY, Mr. Zahren was the founder and Chief Executive
Officer of Zahren Alternative Power Corporation ("Zapco"), which was sold to
USEY in 2001 and renamed US Energy Biogas Corp. Mr. Zahren has extensive
experience in managing USEB's and its predecessor's operations and development
activities in alternative energy and cogeneration projects. Mr. Zahren
received a B.A. degree from the University of Notre Dame and an M.B.A. from
the University of Pittsburgh.
Mr. Reynolds has served as the Chief Executive Officer of USEY and of its
subsidiary, UK Energy Systems Limited, since 2007. He has over 30 years of
experience in the energy industry, has held operations and management
positions with Occidental Petroleum, Tenneco Gas/El Paso, Enron and Unocal.
During his career in the energy sector, Mr. Reynolds has developed and managed
international midstream and downstream oil and gas facilities, as well as LNG,
chemical, and power generation projects, including renewable energy projects.
He has been responsible for overseeing the development, financing and
management of greenfield facilities and acquisitions, and the development of
new technology, including heavy oil extraction, shale oil, ethanol and
biomass. He holds an M.B.A. from Durham University UK and a B.S. from the
University of Alabama in petroleum/chemical processing. He is a registered
professional engineer in Europe, a Chartered Chemical Engineer and a Chartered
Scientist in the UK.
Mr. Augustine is Vice President, Chief Accounting Officer and Secretary of
USEY and Chief Executive Officer of its subsidiary, U.S. Energy Biogas Corp.
He has served as an officer of U.S. Energy Biogas Corp. and its corporate
predecessor, Zapco, since 1996. During this period he has been closely
involved in accounting, treasury, finance and reporting functions at U.S.
Energy Biogas Corp. Prior to his involvement with USEY, U.S. Energy Biogas and
Zapco, Mr. Augustine served as Vice President of Finance and Administration at
Richard Roberts Group, a real estate syndicator. Mr. Augustine graduated from
the College of the Holy Cross with a B.A. in Economics and Accounting and from
the University of Connecticut with an M.B.A. in Finance.
Mr. Schneider tendered his resignation on January 20, 2008, and the new
Directors were elected on January 21, 2008.
Special Meeting of Stockholders
USEY also reported that it has mailed to stockholders a Notice of Special
Meeting of Stockholders to be held on Tuesday, January 29, 2008 (the "Special
Meeting Notice") and made the Special Meeting Notice generally available to
investors by filing it with the SEC as an exhibit to a Form 8-K report.
The Board of Directors has fixed the close of business on January 18, 2008
as the record date for the determination of stockholders entitled to notice of
and to vote at the special meeting and at any adjournment or postponement
thereof.
The special meeting's purpose, location, and instructions for stockholders
on voting procedures are described in the Special Meeting Notice.
About U.S. Energy Systems, Inc.
U.S. Energy Systems, Inc. is an owner of green power and clean energy and
resources. USEY owns and operates energy projects in the United States and
United Kingdom that generate electricity, thermal energy and gas production.
Certain matters discussed in this press release are forward-looking
statements, and certain important factors may affect the Company's actual
results and could cause actual results to differ materially from any forward-
looking statements made in this release, or which are otherwise made by or on
behalf of the Company. Such factors include, but are not limited to: the
Company's ability to effect a successful restructuring or recapitalization in
Chapter 11 bankruptcy proceedings; the Company's ability to continue as a
going concern; the Company's ability to fund and complete ongoing projects,
including the expansion of the Company's UK assets, in a timely manner; the
final results of the updated reserve reports and 3D seismic study of the
Company's gas reserves structures; the Company's ability to develop a
commercially viable revised business plan for the UK assets and the business
as a whole; failure to realize the estimated savings or operating results of
acquisitions, and other risks associated with acquisitions generally,
including risks relating to managing and integrating acquired businesses;
changes in market conditions and the impact of market conditions on the
Company's capital expenditures; the impact of competition; changes in local or
regional economic conditions, and the amount and rate of growth in expenses;
changes in UK or U.S. federal or state laws and their interpretation with
respect to regulation, energy policy and other business issues; and the
ability to comply with environmental laws and regulations and to obtain
necessary permits; and other risks detailed from time to time in USEY's
Securities and Exchange Commission filings, including its Annual Report on
Form 10-K for the year ended December 31, 2006 and its Current Reports on Form
8-K dated June 25, 2007, August 31, 2007, October 1, 2007, October 9, 2007,
and October 16, 2007, January 9, 2008, and January 19, 2008. The Company does
not undertake to update any of the information set forth in this press
release.
CONTACT:
Adam Weiner / Joel Steinhaus
Kekst and Company
212-521-4800

SOURCE U.S. Energy Systems, Inc.

Adam Weiner or Joel Steinhaus, both of Kekst and Company for U.S. Energy
Systems, Inc., +1-212-521-4800