SOURCE: INFRAX Systems, Inc.

April 14, 2011 08:00 ET

Infrax Systems (IFXY) Completes Purchase of Controlling Interest in RFID Pioneer, Lockwood Technology

RFID Security and Asset Management to Be Incorporated Into Infrax Secure Intelligent Energy Platform for Smart Grid Security Applications

ST. PETERSBURG, FL--(Marketwire - Apr 14, 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 it has completed the acquisition of controlling interest in Lockwood Technology Corporation, a leading RFID software and hardware solutions provider, from Daedalus Capital, LLC.

As previously disclosed, Infrax Systems acquired 70% interest in Lockwood Technologies from Daedalus Capital in a stock based transaction valued at $1,650,000. As part of the transaction, Daedalus Capital provided additional working capital to Infrax to fund current development activities of Infrax Systems and Lockwood. Lockwood's revenues are anticipated to exceed $1,000,000 over the next 12 months from their current opportunities and Infrax also plans to utilize their expertise in future smart grid deployment projects.

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.

"We are pleased to welcome the Lockwood team to Infrax. We have been extremely impressed by the robustness of their platform and are looking forward to adding RFID technology and Asset Management to Infrax's Secure Intelligent Energy Platform. Lockwood's unique solutions for controlling access to Utility facilities, including power generation, energy control centers and substations will play a crucial role in securing the energy grid," said Paul J. Aiello, CEO of Infrax. "Our goal is to expand the reach of Lockwood Technology into the energy sector, while introducing Infrax Network's product offering into Lockwood's customer base of public safety, government and defense clients."

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. Future applications of Lockwood's technologies may include near field communication (NFC) RFID stickers, banking, Electronic money and Mobile commerce.

Infrax plans to incorporate Lockwood's RFID tracking solutions into its complete product portfolio and to continue to expand their Integration Partner and affiliate programs. Lockwood's current integration partners include Microsoft, Motorola, Lockheed Martin, General Dynamics and GovPlace.

"The combination of Lockwood Technology and Infrax Systems will benefit our shareholders, customers and employees by offering additional opportunities for revenue growth and technology development," Mr. Aiello also states, "As we begin the integration process, we are also focused on completing the due diligence phase for our other pending acquisitions."

About Lockwood Technology Corporation

Since 1994 Lockwood Technology has focused on developing world class asset tracking software and asset tracking services. Our development teams have built efficient integrated systems for clients worldwide. Our client base includes entities from many vertical markets including: finance, healthcare, hospitality, manufacturing, transportation, law enforcement, education, federal government, public sector, legal, telecommunications and insurance. Fortune 500 companies throughout the world choose Lockwood as the solution that fits their need. Our affiliate program extends throughout the United States, Canada, Europe, Asia and the Pacific Rim. Our Asset Tracking & Management Software easily tracks assets using bar coding, radio frequency (RFID), imaging, and wireless technologies. Our Large Enterprise Edition is a client/server, multi-user, menu-driven asset database manager which runs on MS Windows XP, Vista and Windows 7 operating system, utilize SQL Server 2005 & 2008 and can track virtually anything!

Lockwood also offers a complete line of Mobile Information Systems products, which are compatible with Windows Mobile and that feature; bar coding, RFID, biometric, imaging and wireless technologies. Lockwood products are offered for licensed in-house use or as a hosted (SaaS) solution.

For Lockwood Technology information, visit www.lockwoodtechnology.com

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 Investors@Infraxinc.com or visit www.infraxinc.com.

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