U.S. Energy Systems Announces Retirement of Chairman Lawrence Schneider

U.S. Energy Systems, Inc. (Nasdaq: USEY) today announced that Chairman Lawrence Schneider, 70, has retired from the Company’s Board in order to pursue other interests. Asher E. Fogel, USEY’s Chief Executive Officer, said, "Larry Schneider has been a dedicated leader for USEY. Among his many important and lasting contributions, he demonstrated his commitment to USEY and its shareholders by putting our Company on a new strategic course over the past year that we believe is beginning to bear fruit. On behalf of our management team and Board, I thank him for his service to USEY, and for providing us the opportunity to become associated with this exciting Company. We wish him every success in his future endeavors, just as he has had throughout his career.” USEY also announced that Stephen Brown and Carl Greene are stepping down from USEY’s Board. Mr. Fogel said, "Steve and Carl have been important members of a Board that has led USEY to exciting opportunities for enhancing USEY’s value. Our much higher level of strategic activity over the past year has demanded significantly more of our Board’s time. We deeply appreciate the energy and commitment that Steve and Carl have provided USEY, and we respect their decisions to leave our Board at this point in time.” USEY stated that Mr. Fogel has been elected by the Company’s continuing independent directors to serve as USEY’s Chairman. USEY also confirmed that with the Board resignations announced today, its Board continues to have a majority of independent directors, and that its Board also intends to identify and recruit additional independent directors. 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. Additional information is available on the Company’s website at: http://www.useyinc.com. 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 effect of the Chapter 11 filing by U.S. Energy Biogas Corp. (a USEY subsidiary), access to needed financing or refinancing on acceptable terms, our ability to continue as a going concern, revisions in the initial estimates in the fair market value of the acquired assets, failure to realize the estimated savings or operating results of the acquisition, and other risks associated with acquisitions generally, including risks relating to managing and integrating acquired businesses, changes in market conditions, the impact of competition, changes in local or regional economic conditions, and the amount and rate of growth in expenses, dependence on management and key personnel, changes in federal or state laws and their interpretation with respect to regulation, energy policy and other business issues, the inability to commence planned projects in a timely manner, our ability to continue our growth strategy, and the ability to complete acquisitions, as well as other risks detailed from time to time in U.S. Energy's Securities and Exchange Commission filings, including its Annual Report on Form 10-K for the year ended December 31, 2005 as well as the 10-Q for the period ended September 30, 2006. We do not undertake to update any of the information set forth in this press release.