XsunX Provides Progress Update
Date: 12/16/2007


XsunX Provides Progress Update on its Multi-Megawatt Thin Film Solar Module Factory

ALISO VIEJO, Calif., Dec. 3  -- XsunX, Inc. (OTC Bulletin Board: XSNX - News), a solar technology company engaged in the build- out of its multi-megawatt thin film photovoltaic (TFPV) solar module manufacturing facilities, today provided progress updates on its efforts to establish its TFPV manufacturing infrastructure.

In November, the Company announced that it had secured a $21 million equity financing commitment to support the launch of its base line production system and the first 25 megawatts of its planned 100 megawatts of solar module manufacturing capacity.

XsunX is now focused on initiating orders for the production system assembly components that require the greatest lead times. The Company is working closely with its primary vendors for the delivery of core deposition and laser systems, to be followed shortly thereafter by commitments for backend solar module encapsulation and packaging systems. To support the manufacturing systems, the Company has also begun working with its selected gas systems vendor to design and provide a delivery system for the requisite industrial manufacturing gases.

The Company is actively evaluating options for an appropriate manufacturing facility that will allow XsunX to install and operate its manufacturing systems in 2008. "We are being very deliberate about our building selection," stated Mr. Joseph Grimes, XsunX's COO. "With the current state of the real estate market, there's no shortage of buildings to choose from and our projected delivery schedules for our deposition and laser systems allow us time to make the best facility choice and negotiate favorable lease terms. Therefore, my primary operating goal and budgetary consideration has been to make sure that we secure the components for our manufacturing system, and then focus on final site selection and facility preparation to house our TFPV line."

Commenting on the Company's progress and growth plans, Mr. Tom Djokovich, XsunX's CEO stated, "We've worked hard to establish vendor relationships that we believe will help us overcome the looming shortage of access to sufficient supplies of system components necessary to build thin film module manufacturing facilities. Today, limited access to polysilicon supplies has stifled growth in the silicon wafer markets and we believe that a similar condition is looming within the thin film markets due to a pending shortage of infrastructure necessary to fill equipment orders within reasonable time frames, if at all."

"We believe that access to plasma deposition systems will be instrumental to the success of our plan and any others looking to build TFPV manufacturing infrastructure, so we've negotiated an exclusive contractual commitment from our preferred vendor," continued Mr. Djokovich. "We looked past our initial plans of 100 megawatts and arranged for an exclusive dedicated supply, at our option, for over 500 megawatts of plasma chamber deliveries within a five year period. We did not want to find ourselves in a position where we didn't have a plan and path to establish XsunX as major producer of solar modules."

In response to investor inquiries, the Company plans to provide, at a minimum, monthly updates as to its progress and the status of operations associated with the establishment of its TFPV manufacturing facilities.

About XsunX

Based in Aliso Viejo, Calif., XsunX is developing amorphous silicon thin film photovoltaic (TFPV) solar cell manufacturing processes to produce TFPV solar modules. To deliver its products the Company has begun to build a multi- megawatt TFPV solar module production facility in the United States to meet the growing demand for solar cell products used in large scale commercial projects, utility power fields, and other on-grid applications. Employing a phased roll out of production capacity, it plans to grow manufacturing capacities to over 100 megawatts by 2010.

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.