SOURCE: Axis Technologies Group, Inc.

December 12, 2007 10:19 ET

Axis Technologies Announces Major Metropolitan Airport, State Agencies, and Large Not-for-Profit Agency Among Upcoming Projects With Total Initial Projected Revenue of $2 Million

Green Movement Driving Sales for Dimming/Daylight Harvesting Ballasts and Increase in Sales Leads

LINCOLN, NE--(Marketwire - December 12, 2007) - Axis Technologies Group, Inc. (PINKSHEETS: AXTG) announced today that the momentum behind the "Green Movement," along with increased media exposure, has generated record interest and pending contracts for the Axis Daylight Harvesting Ballast. Greenhouse gas emissions reduction and energy saving efforts have become the cornerstone of many government agencies' and corporations' initiatives to contribute to the solution of reducing operational costs while addressing environmental concerns.

A major metropolitan airport has just decided to move forward with a project to retrofit one of their terminals in which Axis had previously installed and conducted a twelve month test to prove energy savings and validate Axis' technology. This beta test site resulted in an energy reduction of about 40% during daylight hours when the Axis' patented photocell dimmed each fixture in reaction to natural light. The well-constructed test also showed a 26% peak-demand reduction during the mid-day hours. Approximately 5000-6000 of the Axis ballasts have been specified for this project, which is now out for installation bids. This is the first of several terminals at this airport to be retrofitted. Upon airport authority's approval, Axis Technology will issue a press release providing more details on the contract along with the identity of the client.

Axis has received a purchase order for nearly 1000 ballasts from the company's California agents to retrofit the high-rise building of a high-profile philanthropic agency in Los Angeles. The company anticipates client approval for a press release upon completion of the project's installation.

In addition, a currently undisclosed state agency on the East Coast is installing a beta site for testing to prove the Axis ballast's energy saving potential. The company has high confidence that the parameters delineated in the efficiency test will lead to a campus-wide retrofit of all of this agency's buildings to include approximately 7000 ballasts. The company has been informed that the state involved will utilize the efficiency test to determine whether to expand the energy saving lighting in a statewide retrofit of numerous state office buildings comprising many thousands of ballasts.

Jim Erickson, President of Axis Technologies, Inc., said, "These three projects alone initially total over $300,000 in revenue for Axis Technologies, and will be a major stepping-stone to reach several million dollars in sales during 2008. If the state client decides to adopt our ballast statewide, the contract would exceed $2 Million statewide. We have already initiated other beta site/efficiency tests in at least 12 additional states with anticipated contract award dates expected prior to the end of first quarter, 2008. Americans spend 90% of their time indoors and lighting energy use (and resulting emissions) is growing rapidly. By incorporating the Axis DDH Ballasts' green design to lighting, indoor air quality can be significantly improved. This benefits everyone and now is the time to start making a difference for the future."

Axis Technologies, Inc. makes it easy for government agencies and businesses to embrace the economic benefits of environmental responsibility with the company's DDH (Dimming & Daylight Harvesting) electronic ballast. Quick installation, no commissioning (after-installation set-up and adjustment), and individually integrated automatic controls makes the proprietary Axis DDH Ballast unique in the marketplace. The Axis ballast is up to 40% more energy efficient than standard electronic ballasts, which have replaced nearly 25% of existing magnetic ballasts, with annual U.S. sales of about 24 million units. Standard electronic ballasts have already saved $400 million in consumer energy bills, and net savings will grow to $13 billion by the year 2015. The Axis ballasts have demonstrated repeatedly that significant energy savings can be realized beyond what the standard ballasts can offer the corporate and government market.

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 standard ballast.

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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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