SOURCE: TX Holdings, Inc.

August 29, 2007 09:00 ET

Auzy Production "On the Rise"

ABILENE, TX--(Marketwire - August 29, 2007) - TX Holdings Inc. (OTCBB: TXHG) announced today that the Auzy property in Kansas has shown a steady daily increase in the volume of barrels of oil per day. As original estimates once again prove to be correct, production as of yesterday had moved to over 78 barrels per day. That is an increase of roughly five percent in the last two weeks.

Mark Neuhaus, Chairman and C.E.O. of TX Holdings, stated, "We are thrilled with the steady increase of volume this property is bringing us. We look forward to further benefiting from this property in the near future."

Over the next thirty days, TX Holdings along with Hewitt Energy Group plan to bring an additional one to two wells on line doing similar production as the first on the property. The property was purchased in a partnership with Hewitt Energy Group of Salt Lake City as the company continues to expand its ongoing relationship with HEG.

About TX Holdings Inc.

TX Holdings is a publicly traded oil & gas production company. The Company's strategy consists of acquiring and developing shallow, low-risk, and high-yield oil and gas leases in West Texas, Kansas, Oklahoma and Louisiana. TX Holdings currently has a working interest in over 100 wells divided between four active projects. For further information, please visit the Company's website at www.txholdings.com.

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