System Will Incorporate Reel-to-Reel Manufacturing Systems and Low Temperature Process Techniques Allowing Use of Rolled Transparent Thin Films

XsunX Launches Design and Development of Mass Production System for Solar Electric Transparent Films

System Will Incorporate Reel-to-Reel Manufacturing Systems and Low Temperature Process Techniques Allowing Use of Rolled Transparent Thin Films

ALISO VIEJO, Calif., Aug. 18, 2005, 2005 - XsunX, Inc. (OTCBB: XSNX), developer of Power Glass(tm) -- an innovative solar technology that allows glass windows to produce electricity from the power of the sun, announced today that as part of its Phase III development plan the Company has begun the design and engineering of an integrated mass production system for the manufacture of its proprietary Power Glass thin film transparent solar cell.

XsunX plans to integrate its reel-to-reel manufacturing technology into the production system thereby allowing the use of rolls of polyesters such as Polyethylenenapthalate, or PEN, in the manufacture of its transparent solar cells. The Company believes that the use of rolled plastic films to produce large area solar cell systems represents a marketable opportunity to provide the international glass industry with a viable method of manufacturing and delivering integrated window systems that produce electricity, and increase building efficiencies.

``Originally we had planned to design and build a demonstration scale system to assist us in marketing efforts to potential licensees,'' stated Tom Djokovich, XsunX's CEO. ``After further analysis, we determined that building a full scale mass production system would help us to potentially shorten the sales cycle and delivery time of equipment and technology to the first of our future licensees. Additionally, the ability to market the system would allow us to recapitalize the costs associated with its production, reduce long term capital outlays in equipment costs, and move cash flows to the bottom line more rapidly.''

The Company anticipates completing the design and engineering process over the next several months and will move into the manufacturing process of the system prior to the end of the year. During this time, XsunX is continuing to refine, enhance, and develop additional aspects of its solar cell design and manufacturing process.

``We have come to a point in the development cycle that allows us to now begin assembling and integrating what we have learned into a mass production system that will allow us to deliver our technology in a reliable and consistent way,'' stated Dr. Arun Madan, Chairman of XsunX's Scientific Advisory Board. ``Taking what we've learned in the labs and delivering these technologies in the form of an integrated manufacturing system will be instrumental in building support for our capabilities within our markets.''

About XsunX

Based in Aliso Viejo, California, XsunX is the developer of Power Glass -- an innovative Building Integrated Photovoltaic solar technology that allows glass windows to produce electricity from the power of the sun. This proprietary process is intended to allow manufacturers to apply a transparent and photovoltaic glazing to glass and other transparent substrates. When XsunX glazing is exposed to light, the light energy is converted into electrical energy for use as a power source. XsunX believes that its solar electric glazing technology has a number of major market opportunities in the worldwide architectural glass, optical film and plastics markets. Please visit the Company's website for more information: http://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.

Source: XsunX, Inc.

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Contact:

XsunX, Inc.
Media Relations
(949) 330-8060