SOURCE: Axis Technologies Group, Inc.

October 11, 2007 16:01 ET

Axis Technologies Receives Initial Purchase Order From Energy Innovation Group

Agreement Signed With Energy Innovation Group to Market Daylight Harvesting Ballasts in U.S., Leads to Sales Orders

LINCOLN, NE--(Marketwire - October 11, 2007) - Axis Technologies Group, Inc. (PINKSHEETS: AXTG), a green technology company that designs, manufactures and markets a proprietary line of energy-saving and daylight harvesting electronic dimming ballasts for the commercial lighting industry, has received the first of an expected steady flow of orders to meet Energy Innovation Group's projected requirements through the balance of 2007. The initial order, in excess of $55,000, from Energy Innovation Group, LLC (EIG) (www.energyinnovation.net), headquartered in Culver City, CA, is to support imminent projects by EIG in the retrofit market in California for the Axis Dimming/Daylight Harvesting (DDH) fluorescent ballasts.

Sid Pelston, managing partner of EIG, said, "EIG has demonstrated the Axis DDH ballasts to municipalities, major corporations, and other potential customers in California, representing potential usage in excess of 20,000 of the DDH ballasts. In past years, EIG has generated sales for over 500,000 standard electronic ballasts to these customers. Initial installations are now being scheduled for retrofit, in addition to customers arranging to stock ballasts for use when existing ballasts burn out. EIG will require a substantial ballast inventory to service our customers' needs," Mr. Pelston continued. "Our network of lighting retrofit contractors and electrical engineering firms are being trained and are expected to begin supplying the Axis ballasts in the near future to their existing customer base," he added.

"Axis Technologies is excited about the business coming from Energy Innovation Group and their commitment to our energy-efficient ballasts. EIG has taken the initiative to negotiate rebate programs for the Axis ballasts from the California utilities, which will greatly enhance the value of our DDH ballasts to the end user," said Jim Erickson, President of Axis Technologies, Inc.

About Energy Innovation Group

EIG is a supplier of innovative and emerging technologies and is contracted by various electric utility companies and energy commissions to bring these technologies to the commercial marketplace. EIG develops energy programs for a multitude of unique client facilities including property management companies, trade associations, major corporations, major building owners and municipalities. These programs and strategies include a complete building analysis to find potential energy-efficient and cost-effective savings within a facility through technological advances, lighting and HVAC upgrades, control and sensor systems, power management, maintenance savings, window films, and indoor air quality. The installation of innovative technologies, such as the Axis ballasts, capitalizes in both key areas of reducing expenses and conserving energy use.

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About the Axis Technologies Ballast

Axis Technologies Group, Inc. has developed an 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 a 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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