United Energy Continues Shipments to Petrobras

Under the contract signed with Petrobras America, Inc., United Energy is continuing to make shipments of KX-100 to Brazil. We have received another release order for KX-100 from Petrobras. We anticipate many more orders under this contract.

Our KX-100 will help clean out their wells and pipelines of paraffin and asphaltene, thus increasing oil production. In order to have a closer working relationship with Petrobras, United Energy has set up an organization in Brazil to work with Petrobras in different regions of the country to help increase oil production. We are also in the process of getting other United Energy products approved by Petrobras to help solve problems in the oil field, not related to paraffin and asphaltene. Mr. Wilen, CEO of United Energy Corporation, stated, "Our innovative line of specialty chemicals will be a solution to many problems Petrobras is experiencing in the oil field. We are quite pleased to commence shipments in 2008 of our KX-100 to Petrobras. United Energy has placed significant resources and focus over the past years to put the Company in position for future growth and development. This sales order will provide us with stronger revenue growth in the first quarter of fiscal 2008. The order also demonstrates that our K-Line products meet the quality standards of leading petroleum companies around the world. We enter the New Year with great momentum evidenced by heightened interest and orders in our product line."

"Our strategy remains consistent; increase our revenue base by providing our customers with innovative, high quality, cost effective, products, while at the same time expanding our presence and distribution chains worldwide. Prior year investments will support our continuing growth, and we look forward to strong full year results," continued Mr. Wilen.