Axis Technologies, Inc. Announces Initial Product Development for an Additional Line of Fluorescent Ballasts.

Utilities Across the US Expressing Need for Peak Demand Shaving

LINCOLN, Neb. -- Axis Technologies Group, Inc. (Pink Sheets:AXTG) today announced it has begun working with computer chip manufacturers to help develop an additional line of Axis ballasts that would specifically address peak demand load shedding. Most utility companies charge their customers a surcharge or "peak demand" charge during those times of day when the load on the power plants are at the highest. Usually this means the power companies must start up higher cost generators, and/or buy power from the electrical grid at even higher rates. This new ballast from Axis would allow the power companies the ability to reduce the lighting load for their customers during those peak demand periods.

Jim Erickson, President of Axis Technologies Inc., said, "Axis has had the idea for this additional ballast line for some time, and the time is now right to move forward with its development. We are especially excited with this new ballast idea because our present automatic Dimming & Daylight Harvesting (DDH) ballast is most effective only where there is significant ambient light. This new ballast could be installed in all areas which would greatly enhance our overall sales, and reduce utility bills for our customers; and at the same time, help the utility companies reduce their electrical load."

Mr. Erickson added, "We have heard from several large utility companies who are very excited at the possibility of utilizing this type of load shedding product, and have even expressed interest in providing up to a 100% rebate to encourage their customers to install them. Utilities nationwide are being mandated to reduce their greenhouse gas emissions, and the new Axis product, along with our present DDH ballasts will aid in their efforts."

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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 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.