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

Axis Technologies Group, Inc., 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.