XsunX Thin Film Solar Module Manufacturing Facility Sublease Approved and Renovations Underway

XsunX Thin Film Solar Module Manufacturing Facility Sublease Approved and Renovations Underway

ALISO VIEJO, Calif., May 12, 2008 - XsunX, Inc. (OTCBB: XSNX), a solar technology Company engaged in the build-out of its multi-megawatt thin film photovoltaic (TFPV) solar manufacturing facilities, announced today that the sublease of its new manufacturing facilities has been approved by the primary landlord, and that demolition work to remove unnecessary and obstructive infrastructure commenced the week of May 5th.

This demolition work is required to prepare the facility for XsunX improvements specific to its TFPV manufacturing processes. The Company has scheduled demolition to be completed in July with facility improvements scheduled to begin immediately thereafter.

The existing 90,000 square foot building, located in the City of Wood Village just east of Portland, Oregon, provides XsunX with extensive industrial manufacturing infrastructure including multiple clean air management systems, emergency power generation system, over 200 tons of water chilling capabilities, water purification and vacuum systems for substrate cleaning, and extensive air support systems to manage heat produced from TFPV manufacturing operations. XsunX has agreed to purchase these systems for approximately $112,000 along with a host of other industrial apparatus including support equipment such as office, networking, and telecommunications infrastructure.

"We are very pleased with the terms of our equipment purchase agreement and the capabilities of these relatively new systems." commented Mr. Joe Grimes, COO for XsunX. "We are continuing to benefit both financially and logistically from the selection of this manufacturing site. We have been busy moving our plans forward and in April, we completed architectural drawings outlining demolition requirements which received city building approval the week of May 5th. In conjunction, we are preparing our facility improvement plans which are scheduled to be completed by mid June. In an effort to achieve our growth plans, we have begun hiring staff in Oregon to supervise our facility renovations and to meet our staffing needs," concluded Grimes.

XsunX has hired an on-site Facilities Manager who is intimately familiar with the existing facilities and former operations. The Facility Manager will be an invaluable resource in supervising the preparation and subsequent operation of the facility for XsunX's TFPV manufacturing operations. The Company has also hired an on-site Human Resource Specialist to prepare and initiate hiring plans for adding a large number of employees to the XsunX team. The Company has also begun working with local community colleges to establish training programs and plans to announce on-site job fairs as work progresses.

For more information about XsunX, please visit www.XsunX.com.

Safe Harbor Statement: Matters discussed in this press release contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. When used in this press release, the words "anticipate," "believe," "estimate," "may," "intend," "expect" and similar expressions identify such forward-looking statements. Actual results, performance or achievements could differ materially from those contemplated, expressed or implied by the forward-looking statements contained herein. These forward-looking statements are based largely on the expectations of the Company and are subject to a number of risks and uncertainties. These include, but are not limited to, risks and uncertainties associated with: the impact of economic, competitive and other factors affecting the Company and its operations, markets, product, and distributor performance, the impact on the national and local economies resulting from terrorist actions, and U.S. actions subsequently; and other factors detailed in reports filed by the Company.

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Source: XsunX, Inc.