Lonestar Group Holdings Company (OTCBB: LSGH) announces restructuring

Houston Texas - August 21, 2007: Lonestar Group Holdings Company (OTCBB: LSGH) announces that it has acquired the services of Qwoter.com Issuer Management  Services to assist in restructuring of the company to improve shareholder value and set a definable direction for the company.

 Lonstar Management  said it is filing with the Securities and Exchange Commission to deregister its common stock as part of its plan to restructure. The Form 15 filing immediately suspends  Lonestar Group Holdings Company (OTCBB: LSGH)  obligation to file periodic reports. The deregistration is expected to be effective 90 days later.

While the company has been “Dually Quoted” on the OTCBB and the Pink Sheets the company now will be exclusively quoted on the Pink Sheets going forward.

"Deregistration of our stock is another positive step in implementing the restructuring plan described in Lonestar’s previous filings," said Claude E. Eldridge, Lonestar’s chairman and CEO. "In addition to the significant financial cost savings that the company will achieve, deregistration will also free our managers from SEC-related administrative burdens. Deregistration helps us maintain our focus on the performance of Lonestar's underlying businesses and the development and execution of the restructuring plan."

About Lonestar Group Holdings (OTCBB: LSGH):

Lonestar Group Holdings Company formally US Energy Holdings (OTCBB:USEH) is a consulting / acquisitions firm whose main objective is to increase our clients / shareholder value through improving the efficient use of their / our existing resources and the establishment of new organizational, operational and financial controls. Additionally, we support the financial decision making process which allows for maximization of shareholders' value. Our firm can assist in identifying business opportunities and analyzing alternatives in order to enhance identification of the choice best suited for the client.

Safe Harbor Statement

The information posted in this release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. You can identify these statements by use of the words "may," "will," "should," "plans," "explores," "expects," "anticipates," "continue," "estimate," "project," "intend," and similar expressions. Forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those projected or anticipated. These risks and uncertainties include, but are not limited to, general economic and business conditions, effects of continued geopolitical unrest and regional conflicts, competition, changes in technology and methods of marketing, delays in completing various engineering and manufacturing programs, changes in customer order patterns, changes in product mix, continued success in technological advances and delivering technological innovations, shortages in components, production delays due to performance quality issues with outsourced components, and various other factors beyond the Company's control.


Company Contact Information:

Lonestar Group Holdings
Claude E. Eldridge
Chairman and Chief Executive Officer
4606 FM 1960 W.,Suite #443
Houston, TX 77069
1-281-383-9825 (phone)
1-281-315-8895 (fax)