Axis Technologies Expands Presence in Rocky Mountain States With J.R. Schmidt & Associates.

LINCOLN, Neb. -- Axis Technologies Group, Inc. (Pink Sheets:AXTG) is pleased to announce a large trade area expansion with J.R. Schmidt & Associates, with headquarters in Denver, Colorado. (www.theschmidtcompanies.com) J.R. Schmidt & Associates, a manufacturers representative agency previously representing Axis Technologies Inc. in Colorado only, has agreed to also represent Axis in the states of Wyoming, Utah and New Mexico, through their satellite offices in those areas. Steve Martin, Vice President and Director of Sales for J.R. Schmidt states, "We are happy to expand our alliance with Axis Technologies. Their dimming and daylight harvesting ballast for fluorescent lighting provides a great energy conservation alternative to our customer base." CEO of Axis Technologies, Kip Hirschbach, adds, "This partnership with J.R. Schmidt gives Axis a solid presence in the Rocky Mountain states of the United States, and we look forward to working with their experienced sales staff."

About J.R. Schmidt & Associates

J.R. Schmidt & Associates has served the Rocky Mountain Region since 1977. Representing a select group of manufacturers, they provide electrical, electronic, power and telecommunications products to the commercial and utility, construction, MRO, and OEM markets.

They are committed to building their business and reputation on the principles of HONESTY, RELIABILITY, and QUALITY.

With sales offices strategically located throughout the region, J.R. Schmidt provides comprehensive and informed sales and marketing services for the manufacturers, distributors and utility customers they serve.

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. For further information on Axis Technologies, Inc., visit www.axistechnologyinc.com.

About the Axis DDH Ballast

A "ballast" is an electronic component that regulates voltage in light fixtures. Axis Technologies, Inc. has developed an innovative new ballast with the aim of expanding daylight harvesting, into mainstream lighting applications. The patented Axis Dimming/Daylight Harvesting Ballast (DDH) 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. The Axis DDH Ballast avoids "over-lit" conditions that increase energy costs by harvesting and utilizing free daylight from windows or skylights. As the amount of available daylight fluctuates the Axis DDH Ballast keeps 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.