SOURCE: INFRAX Systems, Inc.

February 15, 2011 08:00 ET

Open Letter to Infrax Systems (IFXY) Shareholders

Continuing on the Path to Secure the Smart Grid

ST. PETERSBURG, FL--(Marketwire - February 15, 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,

In September of last year I published an open letter to our shareholders updating all of you on our business, strategy and vision. With all of our current activities, I thought that an update was appropriate.

This is truly an exciting time in our corporate history. Until now, we have been an R&D company focused on developing our solutions and positioning for the future. We are now beginning the process of launching our smart grid products and deploying our solutions for field trials. Our recent experience at the DistribuTECH exposition further validated our solution and our direction.

Infrax Systems has developed a Secure Intelligent Energy Platform for the emerging smart grid. The core technology is an encrypted intelligent meter card that can be deployed in existing one way meters to provide secure two way communications or in a current two way meter to provide for encrypted secure data and communications.

Portfolio Further Expanded

We purchased Trimax Wireless in June of 2010 to obtain access to their proprietary wireless technology. Trimax's unique technology is the core of our communications platform to transmit the secure meter data from the meter back to the utility. This technology will allow utilities to migrate off of the current communications technologies available, either 900 MHz or cellular. The 900 MHz spectrum is crowded, noisy and unreliable and the use of cellular technology for metering is extremely expensive from a recurring cost standpoint. Additionally, we have modified one of the Trimax platforms to provide wireless backhaul for utilities in a hardened environment. Our UMAX product provides high capacity backhaul with an Ethernet handoff and the UMAX+ adds T-1/E-1 capability as well. We are currently field trialing this technology with a large utility.

We have entered into an LOI to purchase a large infrastructure design and construction firm, BSI, for several key reasons. First, they bring a highly skilled installation work force to Infrax for the deployment of our smart grid solutions, allowing us to be a one-stop provider to the utilities. They have a large fleet of equipment and vehicles and are currently operating or have completed projects in 16 states. Additionally, BSI has a wealth of experience and a stellar reputation in designing and implementing command & control systems and electrical grid interconnection for wind and solar applications. This will provide for the expansion of our solutions into the alternative energy space as well. BSI also has a significant backlog of long term committed contracts. 

We have also entered into an LOI to purchase Lockwood Technology, an innovative RFID hardware and software solutions provider. The acquisition of Lockwood will allow us to add RFID solutions not only to our smart grid components, but also to extend and enhance our security offerings to utilities for access and egress. Lockwood has a distinguished client list and has developed security and asset tracking solutions that we intend to migrate into the energy sector.

We continue to believe that our Secure Intelligent Energy Platform will be a game changer in the smart grid energy sector.

Our Commitment

As we have previously indicated we are focusing our efforts in the following areas:

  • Performance and Portfolio: We are committed to achieving profitable growth by growing our sales and achieving our margin targets. Strengthening our portfolio is an ongoing process that includes continuous innovation, flexibility and may continue to include acquisitions.
  • Operational Excellence: We are committed to executing on our plan to become a leading smart grid solutions provider. Our team is focused on innovation, exceeding customer expectations and competing on a global scale.
  • People Excellence: We are working to create a corporate culture of expecting excellence, delivering on the vision of adapting quickly and effectively to changes in the marketplace. A culture that welcomes change for the opportunity it brings. To meet this objective we are seeking leaders and advisors from a variety of business sectors and increasing our global talent pool.
  • Corporate Responsibility: We are committed to being an active and responsible member of every community where we do business worldwide and we've set the goal of becoming best-in-class in corporate governance, business practices, sustainability and corporate citizenship.

Positioned for Further Growth

While we still face challenges, we are confident that we are poised to make our vision a reality. As we confirmed at the recent DistribuTECH conference, we are the only solutions provider truly focused on providing secure communications and securing the energy grid. We believe that the security of the grid and all of the associated access points is a matter of national security and global importance.

We are creating a solution set at a time of great growth and change in the energy sector. There are significant issues facing utilities as they begin to update their energy delivery systems, increase their reliability and provide the consumer with more control and visibility of their energy usage. Our Secure Intelligent Energy Platform will change the way utilities secure their data, communicate their information and control the demand for energy consumption. Our platform is not simply a solution to these issues; it is the most secure solution.

The continued growth of INFRAX Systems, along with its ecosystem of partners, will be dependent on our ability to execute on our vision, continue to develop secure solutions to real problems, meet our customers' needs and provide value to our shareholders. In other words, we must be relevant in the space that we operate in.

I continue to be pleased with our transformation and I am excited to be a part of a company that continues to build on its past and look forward to a successful future.

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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