Axis Receives Endorsement from Lincoln Electric Co. After Case Study Shows 69% Energy Savings.

LINCOLN, Neb. -- Axis Technologies Group, Inc. (Pink Sheets:AXTG) announced today that the Lincoln Electric System (an electric utility company) published a case study on energy savings following the installation of the Axis Technologies Dimming/Daylight Harvesting (DDH) ballasts in their headquarters in Lincoln, NE. An entire floor of the building was retrofitted with the Axis 4-lamp ballast system and a comparative case study followed.

The study showed a 69% lighting energy savings was achieved after the previous standard T12 ballasts were replaced by the more efficient Axis DDH ballasts. The study also indicated a simple payback period of approximately 18 months due to the combined lighting energy savings, and air conditioning savings due to the lowered heat output after the Axis DDH ballast was installed.

"LES has endorsed the Axis DDH ballast and is recommending them to their customers - this is the first and only product that LES has ever endorsed" said Kip Hirschbach, CEO of Axis Technologies Group, Inc. We are especially excited to have an endorsement like this from an actual electric company and we are confident this will bring us a multitude of new customers." he added.

A full report is available on the Axis Technologies website or by contacting Axis direction at [phone].

About Lincoln Electric Systems:

Lincoln Electric System (LES) is a non-profit, customer-owned single utility company providing electric energy in and around Lincoln, Nebraska. LES was formed in 1966, and services approximately 200 square miles within Lancaster County in Nebraska. The company's mission is to provide energy and services of superior value to enhance the growth and development of the great Lincoln area. LES utilizes nine unique power facilities and provides highly reliable electricity rates that are in the lowest 10 percent of the country saving businesses in the LES service area thousands of dollars a year on electricity costs. Working hand-in-hand with businesses as well as local, regional and state economic development, LES is focused on the success of local organizations and community growth.

About Axis Technologies Group, Inc.:

Axis Technologies Group, Inc. conducts its business through this wholly owned subsidiary Axis Technology, Inc., a Delaware corporation headquartered in Lincoln, Nebraska. Axis Technology, 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.

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.