XsunX Begins Assembly and Installation of Hybrid Systems at New Golden Facility

Company Looks to Expand Facilities

ALISO VIEJO, Calif., July 11, 2006 — XsunX, Inc. (OTCBB: XSNX), provider of technologies for solar energy infrastructure and developer of Power Glass™, an innovative thin-film solar technology that is intended to allow glass windows to produce electricity from the power of the sun, today announced that improvements to the Company’s new Golden Colorado facilities were completed on schedule earlier this month and that the Company has begun the installation of its patented hybrid reel-to-reel manufacturing system.

Originally designed to provide XsunX with turnkey product marketing and development infrastructure, the Company is now looking to expand the facilities to accommodate additional future system assembly, testing, and shipping capabilities. “Based on the response to our marketing efforts and the growth in demand for thin film technologies, we felt that it may be prudent to exercise an opportunity to expand our facilities now by an additional nine thousand square feet allowing us to operate for an extended period without the disruption associated with relocation,” commented Tom Djokovich, XsunX’s CEO.

The Company has also received a large number of inquires asking for tours of its new facilities in Golden Colorado. “Unfortunately, catering to these requests would be very disruptive to our current efforts to complete the installation of equipment and facilities,” stated Tom Djokovich. “We hope to be able to accommodate limited tours upon completion later this year,” concluded Djokovich.

 The XsunX manufacturing system is based upon a patented hybrid design combining the scalability of reel-to-reel processing and the use of flexible rolled substrates with the exacting capabilities of cluster tool vacuum deposition systems. These systems can be configured to produce several types of thin film solar cells, such as single junction opaque cells, tandem junction micromorph type cells, and the Company’s proprietary cell designs that include Power Glass films and a new 4-terminal cell that the Company hopes to begin marketing next year as a replacement to more costly silicon wafer technologies

About XsunX

Based in Aliso Viejo, Calif., XsunX is developing and commercializing innovative new thin film photovoltaic (TFPV) solar cell technologies and manufacturing processes to service expanding global energy demands. The Company has focused its efforts on lowering the cost per watt of solar power and making solar cell technology easier to use in a wide variety of applications. XsunX calls this dual improvement to cost and efficiency the XFactor™. The XFactor delivers licensee’s solar cell designs that break the bounds of crystalline silicon dependency, rigid and limited-use form factors, and rapid efficiency loss. Equally important, the XFactor provides new manufacturing techniques that can significantly lower production costs and allow for easier additions to production capacities and technology upgrades without having to re-build and re-tool. Together, XsunX design and production innovations offer manufacturers of solar products exciting new application opportunities and reductions to the cost per watt of solar power.

XsunX, Inc., (888) 797-4527

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Deborah Jones
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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