351917--4/12/2006--U_S_ENERGY_SYSTEMS_INC

related topics
{acquisition, growth, future}
{cost, operation, labor}
{condition, economic, financial}
{cost, contract, operation}
{gas, price, oil}
{system, service, information}
{loss, insurance, financial}
{operation, international, foreign}
{interest, director, officer}
{debt, indebtedness, cash}
{cost, regulation, environmental}
{competitive, industry, competition}
{control, financial, internal}
Our operations are not profitable and may not become profitable in the future Our subsidiaries have substantial indebtedness and related interest expense and in connection with their existing indebtedness we have agreed to significant restrictions upon their operations, including their ability to use their cash. We have rate risk within the Illinois Retail Rate Program We may not be able to complete the acquisition of Viking Petroleum and the related transactions and even if completed, these transactions may not be profitable to us. We may not be able to complete the acquisition of Viking Petroleum and the related transactions and even if completed, these transactions may not be profitable to us. Our results may be impacted by foreign currency exchange rates. A significant source of USEB s revenues are generated from special tax credits provided for the sale of landfill gas to third parties and these credits expire on December 31, 2007. We have legislative risk pertaining to the continuation of the Illinois Retail Rate Program. We may face substantial impediments to completing future acquisitions and development projects. We may be unable to acquire or renew the numerous permits and approvals required to operate power facilities. We have limited available capital, and we may need additional financing in the future. Environmental Health and Safety Risks We depend on our electricity and landfill gas customers. Our equipment may breakdown and we rely on third parties to operate certain projects. The energy business is very competitive and increased competition could adversely affect us. We may experience project development risks Although we have insurance it may not cover every potential risk associated with our operations.

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