Department of Homeland Security Facility Achieves LEED Gold Status After Installing Axis Ballasts.

LINCOLN, Neb. -- Axis Technology, Inc. (Pink Sheets:AXTG) is pleased to announce The Department of Homeland Security Facility in Omaha, NE recently earned Gold Certification in the LEED New Construction Category (LEED-NC). The facility was equipped with 300 Axis Dimming/Daylight Harvesting (DDH) ballasts with the goal of achieving the energy efficiency requirements necessary to obtain LEED-NC certification. This installation of Axis products combine with other Green applications aided this facility in becoming LEED-NC Gold Certified.

The Energy Policy Act of 1992 and Executive Order 13124 requires Federal buildings to reduce their energy use by 35 percent by 2010 (compared to 1985). The Department of Homeland Security facility is one of eight Federal buildings to have already received LEED Certification. In addition, it is estimated that more than 60 Federal buildings are also vying to obtain this certification.

"We believe this government act that encourages Green buildings and initiatives to be an extremely positive development for our company," said Kip Hirschbach, CEO of Axis Technologies. "The Axis DDH Ballast is an obvious component for those facilities that want to lower energy consumption and become more environmentally friendly," Hirschbach added.

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

About Leadership in Energy & Environmental Design

The Leadership in Energy & Environmental Design (LEED) Green Building Rate System[TM] is a nationally accepted benchmark for the design, construction and operation of high performance green buildings. LEED promotes a whole-building approach by recognizing five key areas of human and environmental health. The system focuses on sustainable site development, water savings, energy efficiency, materials selection and indoor environmental qualities. The LEED Rating System was created to transform the built environment to sustainability by providing the building industry with consistent, credible standards for what constitutes a green building. Eligibility requirements include and extensive site plan review and specific site audit. More can be learned about LEED at www.usgbc.org.

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.

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.

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.