Axis Product Installed at American Apparel the Nation's Largest Garment Factory.

LINCOLN, Neb. -- Axis Technologies Group, Inc. (Pink Sheets:AXTG) announced today that American Apparel, the nations largest garment factory, has included the Axis Dimming/Daylight Harvesting (DDH) ballast system as part of a recent lighting upgrade of their downtown Los Angeles Factory. American Apparel's 800,000 sq. ft. facility houses the company's entire operation from sewing and cutting to photography and marketing. The factory offers a significant amount of daylight for their employees and provides for daylight harvesting and energy saving options. American Apparel chose the high efficiency Axis DDH ballasts and low mercury fluorescent lamps as part of the company's commitment to use ecologically sound technologies to focus on environmentally friendly design.

The Axis DDH ballast was installed in the perimeter offices of American Apparel's factory to provide maximum energy savings and peak demand reduction. In addition to reduced energy use, the lighting upgrade and installation of the Axis DDH ballast qualifies American Apparel for rebates from the Los Angeles Department of Water and Power. American Apparel's lower energy costs are part of the company efficiency that allows them to compete successfully in an industry that typically reduces costs by manufacturing outside the United States.

"We are creating quite a buzz as more and more high profile agencies and facilities like American Apparel utilize Axis products. We are truly achieving brand recognition as the concept of daylight harvesting and the name Axis become synonymous," said Kip Hirschbach, CEO of Axis Technologies Group, Inc.

About American Apparel

American Apparel is that largest garment factory in the United States employing 4,000 people world wide. The only company of its size that does not use sub-contractors or off-shore labor, American Apparel is a vertically integrated manufacturer and retailer of clothing for men, women, children and dogs. The company has consolidated all of its operations in a single downtown Los Angeles factory and provides year-round employment to its garment workers in a predominately seasonal industry and offers extensive wages and benefits packages to its employees. American Apparel knits, dyes, cuts, sews, photographs, markets, distributes, and designs all garments from its 800,000-square foot facility in downtown LA. The company has 120 retail locations world-wide which feature their innovative clothing and had annual revenues of $211 Million for 2005. American Apparel is striving to pioneer a movement in human rights and environmental responsibility.

About Axis Technologies Group, Inc.

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 DDH ballast is priced competitively and is the only daylight harvesting ballast system that can be marketed as a replacement for a standard ballast.

About the Axis DDH Ballast

A "ballast" is an electronic component that regulates voltage in fluorescent lighting. Axis Technologies Group, Inc. has developed an innovative new ballast with the aim of 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.

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.