SOURCE: TX Holdings, Inc.

August 15, 2007 10:41 ET

TX Holdings, Inc. Receives Approval on H-5 Tests for Williams Lease

ABILENE, TX--(Marketwire - August 15, 2007) - TX Holdings, Inc. (OTCBB: TXHG) has completed the H-5 pressure tests on two of the three wells to begin production on the leases. The third well should be completed by the end of the week. Well numbers 9 and B-6 are the two that were completed. These tests were completed in order to comply with the RRC (Texas Rail Road Commission) prior to putting these wells into production. The purpose of these structural integrity tests is to ensure the wells are capable of handling the pressure and do not leak in to the water table during the process of extracting the oil from the ground.

"The completion of the H-5 tests is a major step for TXHG as we move into the next stage of our company's assent. With oil prices continuing to rise and maintain at such high levels, we look forward to the Williams' lease moving into production," stated C.E.O. Mark Neuhaus.

About TX Holdings, Inc.

TX Holdings is a publicly traded oil and gas production company. The Company's strategy consists of acquiring and developing shallow, low-risk, 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 five active projects. For further information, please visit the Company's website at www.txholdings.com.

FORWARD-LOOKING STATEMENTS: The forward-looking statements contained herein are subject to certain risks and uncertainties that could cause actual results to differ materially from those reflected in the forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which reflect management's analysis only as of the date hereof. The company undertakes no obligation to publicly revise these forward-looking statements to reflect events or circumstances that arise after the date thereof.

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