SOURCE: Axis Technologies Group, Inc.

December 17, 2008 07:39 ET

Axis Technologies Announces Load-Shedding Ballast for Utility Industry Challenged by Government Mandates to Adopt Energy Saving Initiatives

Wirelessly Addressable Ballast Offers Power Companies Ability to Reduce Commercial Lighting Load During Peak Demand Periods; Market Launch Scheduled for First Quarter of 2009

LINCOLN, NE--(Marketwire - December 17, 2008) - Axis Technologies Group, Inc. (PINKSHEETS: AXTG), a green technology designer, manufacturer and marketer of a proprietary line of energy saving and daylight harvesting electronic dimming ballasts for the commercial lighting industry, announced today that the company is in the advanced stages of development of a remotely addressable dimming fluorescent ballast with market launch anticipated in the first quarter of 2009.

President-Elect Obama's Immediate Goal to Update Federal Buildings

In a press conference on November 25, 2008 in Chicago, President-elect Barack Obama said, "First, we will launch a massive effort to make public buildings more energy-efficient. Our government now pays the highest energy bill in the world. Replacing old heating systems and installing energy efficient light bulbs in federal buildings would save taxpayers billions of dollars, as well as create new jobs."

Axis Technologies Inc. is nearing completion of the development of the company's next generation ballast that will focus on the utility industry. The company is currently testing working prototypes of the design. The new product builds on the successful design of Axis's current daylight harvesting energy efficient ballast and will offer additional performance refinement and flexibility. Significantly, the new ballast will expand the target market into more lighting products and applications. The seamless operation and increased flexibility will enable lighting designers to incorporate green technology with high energy savings performance and high user acceptance.

Private and public buildings and utilities can benefit from this emerging Axis technology that can greatly assist their critical Peak Demand reduction and kilowatt reduction goals. The existing power grid infrastructure is at maximum capacity in many parts of the country, and utilities must find ways to reduce existing electric loads to ensure power distribution to all their customers during Peak Demand periods. New power lines to expand capacity aren't expected to be installed in the near future, so the existing power requirements must be maintained within the grid's capacity. The only effective method to do so is to reduce power use through higher energy efficiency and coordinated load shedding. The Axis ballast will offer a readily deployable and cost effective solution to reduce, and control, electric lighting loads during peak periods, allowing utilities to immediately impact their power management requirements.

Axis Technologies' next generation ballast is currently in testing of working prototypes of the design -- a wirelessly addressable, load-shedding ballast which offers power companies the ability to reduce the lighting load (load shedding) for their commercial customers during peak demand periods. Most utility companies charge their customers a surcharge, or "peak demand," charge during those times of the day when the load on the power plants are at the highest level. Usually this high demand results in the power companies starting up higher cost generators, and/or buying power from the electrical grid at even higher power rates.

Load-Shedding Ballast Targeted at Power Utilities Market

Private and public utilities will benefit from an emerging technology that can greatly assist their critical Peak Demand reduction and kilowatt reduction goals, with immediate deployment and reliable performance. Building owners will be able to increase their property values by incorporating environmentally friendly, and cost efficient building design.

Axis's new load-shedding ballast allows the building owner or the power company to reduce the output of the ballast. The consumer who installs the new ballast can agree to participate in the power company's Peak Demand Reduction Program, which can offer reduced electric rates to the participating company. The ballast is being developed through Axis's affiliate membership with the California Lighting Technology Center (CLTC) -- http://cltc.ucdavis.edu/content/view/239/161/ -- at the University of California, Davis.

The following features are included in the new energy-saving fluorescent ballast:

--  Lower profile housing, significantly increasing the number of light
    fixtures that original equipment manufacturers (OEM) can now offer with the
    Axis ballast.
--  Latest generation electronic components offering higher performance
    and reliability.
--  "Smart chip" function control.
--  Self-commissioning capability.
--  Network communication capability.
--  Demand Response control options.
--  Manual control option.
--  A more architectural and simplified photosensor design.
    

Consistent with Axis' emphasis on simplified design, the new ballast will offer the simplest method of incorporating complex controls with ease of installation, and no maintenance. The ballast will offer increased lamp type and function options, greatly expanding Axis' market into more fluorescent lighting products. Ultimately, the new ballast will offer more than twenty times (20X) the ballast product options now available. Despite the increased options, inventory management efficiency will be improved with the use of core multi-lamp ballasts and modular components.

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About the Axis Ballast:

Axis Technologies Group, Inc. has developed an innovative new ballast (a ballast regulates voltage) with the aim of expanding daylight harvesting into mainstream lighting applications. The patented Axis Dimming/Daylight Harvesting Ballast is a new technology that transforms the standard ballast into a dynamic energy saving system that offers lighting energy cost reduction of up to 70%. The Axis Ballast utilizes an individual photo sensor to automatically adjust the amount of electrical current flowing to the light fixture which results in the dimming or increasing the lighting depending upon the amount of available sunlight below the fixtures. The Axis Ballast avoids "over-lit" conditions that increase energy costs by harvesting and utilizing free daylight from windows or skylights. As the amount of available daylight fluctuates, the Axis Ballast automatically keeps lighting "tuned" to the desired level in a designated area.

About Axis Technologies Group, Inc. (www.axistechnologyinc.com)

Axis Technologies Group, Inc. conducts its business through this 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 ballast is priced competitively and is the only daylight harvesting ballast system that can be marketed as a replacement for a standard ballast. Many public utilities offer rebates for the purchase of the Axis ballast to their corporate clients.

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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