SOURCE: INFRAX Systems, Inc.

December 20, 2011 08:01 ET

Infrax Systems (IFXY) Announces Record Date and Dividend Rate for Lockwood Technology Spin-Off

Company to Complete a Valuation Report on Lockwood Business for IPO Pricing

ST. PETERSBURG, FL--(Marketwire - Dec 20, 2011) - Infrax Systems, Inc. (OTCBB: IFXY), a global provider of unified Smart Grid-related products and services for the Energy and Utility industries, announced today that its Board of Directors has approved the "record date" and the "dividend rate" of the stock of Lockwood Technology Corporation to its shareholders. The record date for determining the holders of Infrax's common stock who will receive the dividend will be March 19th, 2012. The dividend rate will be 1 (one) share of Lockwood for every 3 (three) shares of Infrax Systems. The record date and the dividend rate may change subject to completion of the IPO process. A valuation of Lockwood business will be completed before the registration is filed with SEC to validate the IPO share pricing. Infrax will continue to hold exclusive rights to Lockwood intellectual property relating to the utility industry. Upon the completion of the transaction, Infrax Systems will maintain a 30% ownership position in Lockwood Technology, further enhancing its asset base and allowing for continued shared development of new utility focused technology solutions.

How will Infrax shareholders benefit from the Spin-Off

1- Every Infrax shareholder will receive free shares as a dividend of another innovative technology based public company
2- Participation of Infrax shareholders in Lockwood's present and future business success
3- Additional liquidity for Infrax shareholders
4- Risk diversification for Infrax shareholders in ownership of another public company at no cost

How will Infrax benefit from the Spin-Off

1- Enhanced focus in its core business
2- 30% ownership in Lockwood would represent marketable securities which would contribute to Infrax's balance sheet

According to IDTechEX, the Global market for RFID technology in 2010 was $5.63 billion, up from $5.03 billion in 2009. This includes tags, readers and software, services for RFID cards, labels, fobs and all other form factors. ABI Research has forecasted that the overall market will pass the $6 billion mark in 2011.The primary drivers for growth will be "modernizing" applications including asset management, cargo tracking and security, corporate employee identification I.D. cards, networks and facility access control, transport passes, as well as supply chain management.

Sam Talari, Co-Chairman of Infrax, said, "We continue to be focused on adding value to our shareholders and the dividend represented by the shares of Lockwood Technology Corporation is another way for us to accomplish this goal. The Board of Directors believes that the spin-off of Lockwood will benefit both our shareholders and Infrax Systems. The core vision and mission of Infrax is to provide robust security and communications solutions to the utility industry, at a time of ever increasing threats to the global energy grid. Furthermore, this action will enable Lockwood Technology to continue to expand their core business and deliver on their vision to continue to develop world class asset management solutions."

The Lockwood technical team has a 16 year track record of developing and implementing comprehensive asset tracking, asset management and security solutions for public and private organizations. Lockwood has deployed solutions for a variety of government agencies including the US Department for Homeland Security, the Air Force Office of Scientific Research, the US Army and the US House of Representatives.

A Note on the SEC Registration

While Infrax intends to file such registration statement with the SEC, there is no assurance that such statement will be declared effective for the class of stock being registered of Lockwood. While Infrax will make best efforts toward the effective registration of such a class of stock, there can and will be no guarantee of the effectiveness of such registration for purposes of this dividend.

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, (Grid Mesh™), 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 or visit

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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