Commercial & Residential Solar Solutions

XsunX Business and Technology Newsletter

Good morning,

In this CIGSolarTM tool build update, we are excited to announce that a significant milestone in our project has been accomplished. Recently, the CIGSolarTM tool passed final acceptance testing of the fully integrated heating, vacuum, and material transport systems without a hitch. The system performed flawlessly and we are very excited to announce that the system is now being prepared for shipment.

We have posted update pictures to our website where you can see the progress in preparing the tool for shipment: CIGSolar project update page.  With the system disassembled, you can easily see the completed major components. This makes it a great time for us to point out just a few of the innovative features of the CIGSolarTM tool.

For starters, the material transport and heating system were designed as integrated “packs”. This design feature makes these sub-systems easier to assemble or remove for servicing. The customer would also have replacement “packs” ready to install to reduce service time.

Another important design feature of the CIGSolarTM tool was aimed at reducing the complexity, cost, and manufacturing floor area required for thermal evaporation of CIGS. Unlike some manufacturers that break the process zones into separate costly vacuum chamber systems, the central CIGSolarTM processing chamber provides the complete processing environment in a single chamber significantly reducing equipment costs and factory floor space.

The reoccurring theme that we hear from potential customers is their need to reduce the capital-intensive equipment costs necessary to produce solar cells and to significantly shorten the time frames required for delivery of systems. In an effort to meet these requirements, XsunX focused at reducing the overall cost and lengthy time-consuming customization process by adapting some of the less critical processes to several off-the-shelf and proven manufacturing platforms in use today. Next, we focused on the design of our proprietary CIGSolarTM tool and worked to reduce costs by limiting component redundancy in some areas while at the same time creating a highly precise and controllable thermal evaporation environment by using our new patent pending thermal evaporation crucible systems.

We are very excited about prepping our CIGSolarTM tool for shipment to XsunX. The installation of the evaporation crucible systems will be the last set of components to be installed into the CIGSolarTM system at XsunX. Our primary goal has been to successfully complete the tool and produce high performance samples for interested customers. Accomplishing this latest milestone, we are drawing much nearer to completing that goal.

Thanks again for your time, support, and interest. Have a great week.

The XsunX Team

To learn more about XsunX’s’ breakthrough technology please visit http://www.xsunx.com , and follow us on Twitter and Facebook.

Safe Harbor Statement: Matters discussed in this shareholder newsletter contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. When used in this shareholder newsletter, 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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