XsunX Announces Superior Results with the Use of PEN Based Plastic Films

Aliso Viejo, CA, July 12, 2005 –XsunX, Inc. (OTCBB: XSNX), developer of Power Glass™ -- an innovative solar technology that allows glass windows to produce electricity from the power of the sun, announced today that continued development efforts in low temperature processing techniques on plastic films have produced superior results with the use of Polyethylenenapthalate (PEN). Accordingly, XsunX has chosen PEN as a preferred plastic film for the manufacture of Power Glass solar electric films.

The Company’s developing technology for the use of PEN based films is producing solar cells with properties consistent to those found when using glass to manufacture the Company’s solar cell design. This suitability of PEN as a substitute for glass, or other more expensive plastics, provide XsunX with economies in reduced manufacturing costs through the use of less expensive materials. Materials such as PEN based plastics typically cost about 9 times less than other films currently in use for the manufacture of flexible solar cells.

In addition to their cost advantages, PEN based films are also readily available from a wide variety of manufacturers. The Company has begun work to establish compatibility of the evolving XsunX process with various manufacturers. This may prove to be a benefit to future licensee’s of the XsunX process allowing access to multiple suppliers of PEN based films.

“Our goal has been to develop flexible, transparent, energy producing films that can be easily manufactured and integrated into building design and materials. This process of adding energy generation capabilities to building materials is today called Building Integrated Photovoltaics or ‘BIPV’,” stated Mr. Tom Djokovich, XsunX’s CEO. “Focusing on the use of PEN films will allow us to concentrate our resources on bringing a PEN based solution to the BIPV market as soon as possible.”

One of the many advantages to the use of renewable energy technologies is that in many instances new and developing technologies provide users with complementary solutions that do not compete for the same space on, or in, a building. Deployed across different areas such as roofs, curtain walls, glass facades, in basements, and unused portions of parking lots, renewables can be engineered as complementary technologies working together to provide energy independence, explains Mr. Tom Djokovich, XsunX's CEO.

About XsunX

XsunX, Inc. is developing Power Glass™ – an innovative solar technology that allows glass windows to produce electricity from the power of the sun. This means that inhabitants of buildings that have Power Glass™ films integrated into the skin of the building will be able to continue to view the great outdoors – as if they were looking through conventional glass windows. The difference is that these windows will now produce electricity to use to offset dependency on local utility supplied power and increase overall building operational efficiencies. This use of photovoltaics in building materials is a growing market opportunity referred to as Building Integrated Photovoltaics or “BIPV”. XsunX intends to become a recognized leader in the Building Integrated Photovoltaics industry. The Company plans to market the XsunX Power Glass™ solar cell structure and manufacturing process as a competitive alternative to non-energy producing coatings and glazing for applications in the worldwide architectural glass, optical film, and plastics markets. Please visit the Company's website for more information: https://XsunX.com

XsunX, Inc.
Tom M. Djokovich
(949) 330-8060

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.