Axis Technologies Announces Order for $700,000 From Energy Innovation Group (EIG)

EIG Forecasts Placing $5.4 Million in Orders for Axis Ballasts in 2009; Master Distributor Begins Installations Under $5 Million Contract With City of Pasadena to Supply Emerging Energy Saving Technologies

Axis Technologies Group, Inc. (PINKSHEETS: AXTG), a green technology company that designs, manufactures and markets a proprietary line of energy saving and daylight harvesting electronic dimming ballasts for the commercial lighting industry, has received firm purchase orders in November 2008 valued in excess of $700,000 for the Axis ballast from Energy Innovation Group (EIG) www.energyinnovation.net to cover the indicated purchases of ballast needs for customers during 2009 in the City of Pasadena. Energy Innovation Group is one of the major product distribution partners of Axis Technologies and previously announced the $5 Million contract with the City of Pasadena, California to supply a number of advanced technology energy savings products for Pasadena Water & Power (PWP) business, government, and school customers.

EIG Managing Partner, Sid Pelston, said, "There are seven technologies approved under the Pasadena direct install emerging technologies program, including the Axis daylight harvesting ballast. The Axis ballast is expected to be the primary product and to be used by virtually every customer served under this program. Installation of the Axis ballasts under the program commenced during November 2008. PWP is paying 100% of the first $25,000 cost for the purchase of any of the technologies by a customer under the program. In addition, PWP will pay 50% of the cost of the emerging technology product purchases that exceed the $25,000. We expect that over 50,000 Axis ballasts will be supplied under this PWP program during the 2009 - 2010 time period. PWP is relying on this program to reduce energy demand and assist the utility to meet projected increased demand for power. EIG is proposing a similar program to utilities throughout California."

Mr. Pelston added: "In addition to the supply of Axis ballasts for PWP customers, EIG has an agreement with the Los Angeles Department of Water & Power (LADWP) to provide special incentives for the purchase of the Axis ballast. EIG also has a contract with Southern California Edison (SCE) to provide special benefits to SCE customers for the purchase of products under EIG's contracted programs with SCE. Multiple installations have already been completed or are under contract for installation of the Axis ballast for properties managed by CB Richard Ellis and Cushman & Wakefield."

Mr. Pelston emphasized, "Our experience has been most favorable with respect to customer response. In every case, customers with multiple buildings or for management companies, when an installation in one building has been completed, have requested that we review their additional buildings for further opportunities to use the Axis ballast. As a result of the product's increasing visibility and acceptance in the market, the Pasadena, LADWP, and SCE contracts, we are budgeting for our 2009 purchasing of the Axis ballast to exceed $5.4 Million."

EIG purchased over 13,000 Axis ballasts during its first full calendar year as an Axis Technologies Master Distributor in 2007 and has supplied or has contracts to install the remaining balance of its Axis ballast inventory. During November 2008, EIG placed a new inventory order for ballasts valued at $700,000 to cover imminent projects.

Mr. Pelston addressed the subject of today's economic condition: "The current economic climate is very favorable for our industry, since the commercial sector, cities and schools must take all possible steps to reduce energy costs. Considering that many energy users have already taken the conventional steps to reduce lighting, heating, and cooling costs, the marketplace is most responsive to the latest technology advances to further reduce energy costs by utilizing products such as the Axis ballast. Simultaneously, the Department of Energy, the Energy Information Agency (EIA), and utility studies have reported the projected increase in electricity demand over the next 15 years will likely exceed projected supply. Utilities must therefore develop programs to reduce energy demand. This is accomplished through utility incentive programs. In some cases, as demonstrated by Pasadena Water & Power, the utilities are paying a major portion, if not all of the costs, for customers to install the latest energy efficiency equipment to reduce energy use. Innovative energy saving products like the Axis ballasts are very well received by the utilities, since they provide the basis for substantial energy savings for most customers."

Jim Erickson, President of Axis Technologies, noted, "Over the 32 years that EIG management has provided energy technologies and developed utility programs, they have been recognized as an industry leader in commercializing emerging technologies and developing special utility incentive programs. In a period of just over one year, Energy Innovation Group has used its business model to promote product awareness, sales, and installation of the Axis dimming ballasts and bring the ballast to the attention of many major energy users nationally, as well as to get the ballast approved for use with the utilities. We look forward to working with EIG to capitalize on the market positioning for Axis to significantly increase sales for both Axis and EIG and to aid in significant energy reductions for EIG's customers. We are also excited that EIG has begun to expand its client base to other states beyond California."

According to a recent Price Waterhouse survey, 61% of executives feel it is very important (29%) or important (3%) that their companies take proactive steps in reducing their environmental impact. In the very important technology sector, companies are taking steps to protect themselves from potentially more stringent government legislation and regulations in the future initiating their own green-oriented controls. With 20% of survey respondents saying that their companies currently maintain a formal and widely distributed environmental policy and expected to increase significantly over the next two years to 48%. Further reducing the risk of more government regulations being a major goal, technology companies are implementing more environmental initiatives such as monitoring compliance with internal green practices, appointing senior executives with a mandate to enhance green programs, and creating a clearer linkage between green initiatives and actual performance.

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About Energy Innovation Group

EIG (www.energyinnovation.net) is a supplier of innovative and emerging technologies and has been contracted by various electric utility companies and energy commissions to provide special incentives and to bring these technologies to the commercial marketplace. EIG develops energy programs for a multitude of major market sectors, including property management companies, trade associations, major corporations, major building owners, school districts and municipalities. These programs and strategies include a complete building analysis to find potential cost-effective savings within a facility through technological advances, lighting and HVAC upgrades, control and sensor systems, power management, maintenance savings, window films, and indoor air quality. Click on "Performance Reports" at corporate website to see representative sampling of EIG's national customer base.

About the Axis Technologies Ballast

Axis Technologies Group, Inc. has developed an innovative, patented new dimming/daylight harvesting ballast 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.

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.