XSNX OVERSOLD/ CIGSolar® On-Site Sales and Demonstration

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XSNX >>OVERSOLD/ CIGSolar® On-Site Sales and Demonstration

Date: 03/05/2013

Good Morning,

February finished with a strong sales and marketing effort that included an on-site customer sales and demonstration visit, and the delivery of a proposal for a custom system configuration to another customer.

Our customer visit for on-site meetings and system demonstration was a game changing milestone for us. The meetings ended with the client more energized and excited than before, and focused at placing our current CIGSolar® evaporator as the centerpiece of his firm's initial CIGS scale-up.

We are working diligently with this client to configure the best proposal, and we are very hopeful that we can come to terms as soon as possible.

Additionally, in recent weeks we outlined how we were working to configure an end-to-end solution to fill the manufacturing needs for a client with an off-grid solar product requiring specialized packaging of the finished product.

Mr. Joe Grimes spearheaded the sales effort and was able to locate, qualify, and bring the required third party technologies into the XsunX proposal, outlining a viable solution for the customer. This proposal represents an innovative way to use CIGSolar® cells so we felt taking the time to put together a custom solution for this customer was worth the long term industry opportunity that could open up for us once a system of this type was deployed.

Stay tuned, we are working hard to capitalize the full potential of CIGSolar® for our shareholders.

Thanks again for your time and support.
Tom Djokovich, CEO

To learn more about XsunX's' breakthrough CIGSolar® technology please visit http://www.xsunx.com.

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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