SOURCE: INFRAX Systems, Inc.

September 19, 2011 08:00 ET

CEO's Open Letter to Infrax Systems (IFXY) Shareholders

Creating Security Out of Chaos

ST. PETERSBURG, FL--(Marketwire - Sep 19, 2011) - Infrax Systems, Inc., (OTCBB: IFXY), a global provider of unified Smart Grid-related products and services for the Energy and Utility industries, today issued the following letter to our shareholders from our CEO Paul Aiello:

Dear Fellow Shareholders,

As I have in the past, I wanted to update all of you on our business, strategy and vision. With all of our current activities, I thought that an update was appropriate.

Our Company continues to make great progress towards our goal of securing the emerging Smart Grid. In the coming weeks, we will be announcing new products and services, enhancements to our existing portfolio and new partner relationships. The past few months have been very exciting and we anticipate our activities will be beneficial to our loyal shareholders.

In the past month we initiated the reverse stock split which is currently underway. This action was not entered into lightly. The decision to perform this action at this time was taken with the full support of our Board of Directors, our largest shareholders, our legal counsel, our partners, our customers and our loyal shareholders. We strongly believe that INFRAX will be better positioned with our customers, partners and the financial community at large. The DTC is in the process of reissuing shares with the new CUSIP number and we expect this process to be completed shortly. Once complete, we anticipate that our stock performance will reflect our true value.

During the past few months we have been focused on the integration of Lockwood Technologies into our Secure Intelligent Energy Platform. We see great synergies developing and are pleased with the technical capabilities of Lockwood's technical staff. The potential opportunities for Lockwood's technology within the utility industry increase daily. We have just successfully completed a municipal deployment and others will follow.

Infrax System's Secure Intelligent Energy Platform continues to be received as a major security component for the emerging smart grid. We are creating an ecosystem of security and communications products and our core technology will meet or exceed the emerging energy grid security standards.

Portfolio

We continue to focus on our growth through strategic partnerships and acquisition. We are working diligently to complete the acquisition of Southern Power & Controls. The addition of SPC will greatly strengthen our capabilities, expand our service portfolio for utilities and substantially increase our balance sheet. SPC continues to be the preeminent mission critical, infrastructure design and construction firm in the Southeast. Southern Power & Controls will be the cornerstone of our implementation services as we continue to expand our capabilities. They have developed an extremely efficient and professional model which we intend to replicate in future acquisitions.

We strongly believe that the addition of Lockwood Technology and the pending acquisition of Southern Power & Controls greatly strengthen our Secure Intelligent Energy Platform and will be key elements as we continue to pursue our vision to be a dominant security solutions provider in the smart grid energy sector.

Current Activity

Our development activities of the Secure Network Interface Card (SNIC) are progressing on plan. We are currently in the process of selecting our large scale field trial partners and expect to finalize these arrangements in the coming weeks. We anticipate several field trials each including up to 1,000 devices.

The core UMAX substation automation product has been completed and we are in the process of testing additional applications with a key utility partner. We will be releasing additional information at the completion of testing.

Our proposal activity for the TMAX, UMAX and Asset Management product lines continues to increase, both domestically and globally. Our sales staff continues to focus on closing the near term opportunities while developing long term relationships.

In the coming weeks, we will be highlighting our technology at several industry conferences, including the upcoming Utilities Telecom Council Southeast Regional Conference in South Carolina. Participation in these conferences has greatly increased our exposure and recognition in the utility industry.

Our Future

While we still face challenges, we are confident that our activities better position Infrax for future success.

We continue to believe that we are the only solutions provider focused on securing both communications and meter data. Our belief has been reinforced by the interest shown in our technology by both utilities and meter manufacturers.

Recently, we have had meetings with several other meter manufacturers regarding the incorporation of our technology into their meters and the use of our wireless technology to enhance their communications capabilities.

The reality of the security vulnerability of the grid has gained acceptance globally. Infrax is well positioned to strengthen what was once seen as the weakest link into an impenetrable wall. We will continue to add to this strength through organic growth and acquisition.

We continue to be grateful to our loyal shareholder base and together we will build a Company that is both successful and relevant in the times we live in.

I continue to be pleased with our progress and am looking forward to delivering on our commitments in the months ahead.

About Infrax Systems

Infrax Systems offers a series of interrelated operational management, communications, and grid security related products and services known as Secure Intelligent Energy Platform (SIEP). Our products enable a comprehensive and unified solution for communications and applications management of the Smart Grid. SIEP™ incorporates a wide array of communications, security, device and data management tools for Smart Grid applications such as advanced metering solutions and grid optimization. SIEP platform creates a unified solution to securely manage Advanced Metering Infrastructure (AMI) and distribution automation. Infrax's secure smart grid platform, incorporates a communications transport and management system, (GridMesh™), device and data security management, and ultimately secures intelligent endpoint devices (SIED). The secure management of the "last mile" backhaul will be necessary for utilities to implement Smart Grid applications including AMI, real-time pricing, Demand Side Management (DSM), Distribution Monitoring and Automation. When combined, these applications can offer economic, operational and environmental benefits for utilities, and ultimately the utility's customers.

For INFRAX Systems information, contact Investors@Infraxinc.com or visit www.infraxinc.com.

Forward-Looking Statements

This press release may contain forward-looking statements covered within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements relate to, among other things, plans and timing for the introduction or enhancement of our services and products, statements about future market conditions, supply and demand conditions, and other expectations, intentions and plans contained in this press release that are not historical fact and involve risks and uncertainties. Our expectations regarding future revenues depend upon our ability to develop and supply products and services that we may not produce today and that meet defined specifications. When used in this press release, the words "plan," "expect," "believe," and similar expressions generally identify forward-looking statements. These statements reflect our current expectations. They are subject to a number of risks and uncertainties, including, but not limited to, changes in technology and changes in pervasive markets.

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