SOURCE: Axis Technologies Group, Inc.

October 15, 2007 07:00 ET

Axis Technologies Anticipates Surge in Revenue After Product Qualification for Energy Rebate Program Totaling $37 Million

New York State Energy Research and Development Authority Offers Rebates for Green Energy Initiative

LINCOLN, NE--(Marketwire - October 15, 2007) - Axis Technologies Group, Inc. (PINKSHEETS: AXTG) announced today that the company's proprietary Dimming/Daylight Harvesting (DDH) Ballast has met all necessary requirements and is now included with other energy-saving products in a green energy rebate program offered by New York State Energy Research and Development Authority (NYSERDA) valued at $37 million . NYSERDA's current five-year operating plan includes a total of $436.3 million in energy reduction incentives. One such program titled the Permanent Demand Reduction Program includes rebates for certain products that reduce electrical demand during summer weekday afternoons.

Installing energy-efficient lighting products that permanently reduce power consumption, such as the Axis DDH Ballast, will enable businesses to become eligible for these rebates and incentives. Axis Technologies, Inc. and NYSERDA will offer technical assistance to help evaluate energy-efficiency measures and provide guidance on incorporating new and emerging energy-efficient technologies within commercial buildings and other facilities. According to 2003 U.S. Department of Energy (DOE) statistics U.S. buildings consume 39 percent of our nation's primary energy and 70 percent of electricity.

"Axis Technologies is elated about the rebate incentives coming from NYSERDA and their commitment to energy efficiency. We discovered that utilizing the full benefit of the lighting rebate programs for our Axis DDH Ballasts in the State of New York would make our products virtually free of cost to the end user. We look forward to seeing a substantial increase in orders as more businesses learn of the rebate program," said Jim Erickson, President of Axis Technologies, Inc.

About New York State Energy Research and Development Authority (NYSERDA) www.nyserda.com

New York State Energy Research and Development Authority (NYSERDA) is a public benefit corporation created in 1975 under Article 8, Title 9 of the State Public Authorities Law (http://www.nyserda.org/About/TITLE_9_NYSERDA.pdf) through the reconstitution of the New York State Atomic and Space Development Authority. NYSERDA's earliest efforts focused solely on research and development with the goal of reducing the State's petroleum consumption. Subsequent research and development projects focused on topics including environmental effects of energy consumption, development of renewable resources, and advancement of innovative technologies.

Currently, NYSERDA is primarily funded by state rate payers through the System Benefits Charge (SBC) (http://www.dps.state.ny.us/sbc.htm), which was established on May 20, 1996, and was specified funding from July 1, 1998 to June 30, 2001. These SBC funds were allocated towards energy-efficiency programs, research and development initiatives, low-income energy programs, and environmental disclosure activities. Part of this funding went into the creation of New York Energy Smart(SM) which helps to maintain momentum for the State's efforts to develop competitive markets for energy efficiency; demand management; outreach and education services; research development, and demonstration; low-income services; and to provide direct economic and environmental benefits to New Yorkers. The SBC was extended through June 30, 2006, and most recently until June 30, 2011.

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About the Axis Technologies Ballast

Axis Technologies Group, Inc. has developed innovative new ballast, an electronic component that regulates voltage in fluorescent lighting that focuses on expanding daylight harvesting into mainstream fluorescent lighting applications. The patented Axis Dimming/Daylight Harvesting Ballast is a new technology that transforms the ballast, a once standard lighting industry staple, into a dynamic energy-saving system that can reduce lighting energy costs by up to 70%. The Axis DDH Ballast utilizes an individual photo sensor to automatically adjust the amount of electrical current flowing to the light fixture, and then dims or increases lighting in conjunction with the amount of available sunlight that may be harvested from available windows and sunlight. The Axis DDH Ballast avoids "over-lit" conditions that increase energy costs by keeping lighting "tuned" to the desired level in a designated area.

About Axis Technologies Group, Inc.

Axis Technologies Group, Inc. (www.axistechnologyinc.com) conducts its business through a wholly owned subsidiary, Axis Technologies, Inc., a Delaware corporation headquartered in Lincoln, Nebraska. Axis Technologies, Inc. designs, manufactures and markets a proprietary line of energy-saving and daylight harvesting electronic dimming ballasts for the commercial lighting industry. The company's target market is small to large commercial users of fluorescent lighting including office buildings, wholesale and retail buildings, hospitals, schools, and government buildings. In 2002, Underwriters Laboratory (UL) approved Axis products for sale in both the United States and Canada. The Axis Dimming/Daylight Harvesting (DDH) ballast is priced competitively and is the only daylight harvesting ballast system that can be marketed as a replacement for standard ballast.

Safe Harbor

Statements about the Company's future expectations and all other statements in this press release other than historical facts, are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934, and as that term is defined in the Private Securities Litigation Reform Act of 1995. The Company intends that such forward-looking statements be subject to the safe harbors created thereby. The above information contains information relating to the Company that is based on the beliefs of the Company and/or its management as well as assumptions made by and information currently available to the Company or its management. When used in this document, the words "anticipate," "estimate," "expect," "intend," "plans," "projects," and similar expressions, as they relate to the Company or its management, are intended to identify forward-looking statements. Such statements reflect the current view of the Company regarding future events and are subject to certain risks, uncertainties and assumptions, including the risks and uncertainties noted. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove to be incorrect, actual results may vary materially from those described herein as anticipated, believed, estimated, expected, intended or projected. In each instance, forward-looking information should be considered in light of the accompanying meaningful cautionary statements herein. Factors that could cause results to differ include, but are not limited to, successful performance of internal plans, the impact of competitive services and pricing and general economic risks and uncertainties.

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