According to the U.S. Department of Energy\\\'s Energy Information Administration, or EIA, the United States consumed an estimated 173 billion gallons of gasoline and diesel in 2005, and demand is expected to grow at an annual rate of 1.5% to 252 billion gallons by 2030. Gasoline and diesel comprise the vast majority of vehicle fuel currently consumed in the United States, while CNG, LNG and other alternative fuels represent less than 3% of this consumption. Alternative fuels, as defined by the U.S. Department of Energy, include natural gas, ethanol, propane, hydrogen, pure biodiesel, electricity and methanol.

In recent years, domestic prices for gasoline and diesel fuel have increased significantly, largely as a result of higher crude oil prices in the global market and limited refining capacity. Crude oil prices have been affected by increased demand from developing economies such as China and India, global political issues, weather-related supply disruptions and other factors. Industry analysts believe that crude oil producers will continue to face challenges to find and produce crude oil reserves in quantities sufficient to meet growing global demand, and that the costs of finding crude oil will increase. Some analysts predict that crude oil prices will remain at high levels compared to historical standards. Limited domestic refining capacity is also expected to continue to impact gasoline and diesel prices.

Natural gas vehicles use internal combustion engines similar to those used in gasoline or diesel powered engines. A natural gas vehicle uses airtight storage cylinders to hold CNG or LNG, specially designed fuel lines to deliver natural gas to the engine, and an engine tuned to run on natural gas. Natural gas fuels have higher octane content than gasoline or diesel, and the acceleration and other performance characteristics of natural gas vehicles are similar to those of gasoline or diesel powered vehicles of the same weight and engine class. Natural gas vehicles, whether they run on CNG or LNG, are refueled using a hose and nozzle that makes an airtight seal with the vehicle\\\'s gas tank. For heavy-duty vehicles, natural gas vehicles operate more quietly than diesel powered vehicles. According to Deere & Company (John Deere), the decibels generated by running one diesel engine equal the decibels generated by running nine natural gas engines.

For most of its CNG customers, the Company typically purchases natural gas from the local utility or a broker, and the gas is delivered through the utility\\\'s pipeline system to the fueling station where it is compressed and dispensed into customers\\\' vehicles. The Company also supplies a small amount of CNG to individual retail users through publicly accessible sections of some of its fleet fueling stations and its own infrastructure of publicly accessible stations. For its LNG customers, the Company purchases or produces LNG and then deliver it to fueling stations via its fleet of 39 tanker trailers, in many cases pursuant to multi-year supply contracts.

The Company offers a variety of pricing alternatives to help customers manage their long-term fuel costs, including fixed prices and floating prices linked to a natural gas index. The Company’s solution allows customers to focus on their core operations while converting their fleets to a more cost-effective and cleaner fuel with limited up-front capital investment.

The Company works with customers to evaluate the most cost-effective approach to convert their fleets to natural gas. The Company then designs and builds their fueling infrastructure, serving as general contractor or supervising qualified third-party contractors.

The Company provides, or helps its customers obtain, financing to acquire natural gas vehicles or convert their vehicles to operate on natural gas. In the first quarter of 2006, the Company began to offer to loan its customers up to 100% of the up-front capital needed to purchase natural gas vehicles or convert existing vehicles to use natural gas.

The Company services and maintains its customers\\\' natural gas fueling stations, allowing them to focus more on operating their fleets. The Company’s maintenance and support systems are designed to ensure that the customers will have the fuel necessary to operate their fleets on schedule every day. The Company monitors its LNG customers\\\' tank levels remotely from its centralized operations center and use this information to manage customer inventory and schedule deliveries. The Company also remotely monitors equipment at most of its stations to help ensure it is operating properly.

Cost of sales increased by $9.4 million to $36.7 million in the six months ended June 30, 2006, from $27.3 million in the six months ended June 30, 2005.

Depreciation and amortization increased by $0.9 million to $2.6 million in the six months ended June 30, 2006, from $1.7 million in the six months ended June 30, 2005.

Interest (income) expense, net, increased by $0.4 million from $19,000 of income in the six months ended June 30, 2005, to $0.4 million of income for the six months ended June 30, 2006.

Other (income) expense, net amounts in the six months ended June 30, 2006 were substantially the same as in the six months ended June 30, 2005.