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

[November 09, 2012]

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

Saint Petersburg, Nov 9, 2012 (GlobeNewswire via COMTEX) -- Infrax Systems, Inc., (OTC.BB: IFXY), a global provider of Smart Grid-related products and services for the Energy and Utility industries, today issued the following letter to our shareholders from our Chairman & Acting CEO Sam Talari: Dear Fellow Shareholders, As an acting CEO of Infrax Systems, I would like to update all of our shareholders on our current business and events. So let me start with the most exciting one; Infrax Systems was invited by Itron, as a sponsor, to showcase its highly anticipated 2.4GHZ Secured Network Interface Card (SNIC) built based on its Secure Intelligent Energy Platform. Infrax showcased the relevance of security in today's world of Smart Grid and how its ever growing product lines will build a solid barrier against insidious intrusions through its initial product; "SNIC". ITRON UTILITY WEEK 2012, hosted by one of the largest Meter manufacturers in the world, is a premier international event with hundreds of participants from utilities from all over the world. The show was on October 21st in San Antonio TX.

We gathered impressive interest from some of the utilities visiting the show and we believe we have become a viable alternative to larger and more well-known competitors based on our impressive and cost effective technology. We were approached by two prominent utilities, with millions in customers, interested in starting a dialogue for a possible pilot projects for their customers. We will be in discussion with these entities to complete all due diligent and proper documentation. We believe as we continue completion of our products, we will be approached by other utilities and vendors globally for joint development and sales of our products.

We are also planning to file at least two more patents with the United States Patent and Trademark Office by end of the year. As we continue development of our products, we will file more patents to ensure protection for our proprietary technologies.

LOCKWOOD IPO - We started preparing S1 for the spin-off of Lockwood Technology. We have been in consultation with our auditors, accountants and SEC counsel for their support and move the process forward. We expect to file the S1 before the end of the year. We believe with Lockwood's current pipeline, the Company should flourish as a separate and independent public company. We will update our shareholders as more information becomes available through our Facebook page under Infrax Systems.

SALES ACTIVITY - The Company's backlog of proposal activity substantially increased over the last two quarters. Interest in our core products and development projects continue to increase. We are in discussions with several large, nationwide distribution channels to add our SPIDer products to their portfolios. We have been working on a Master Sales Contract with one of the biggest utilities in the country for our SPIDer product line. We hope and expect to close this contract before the end of the year. Lockwood technology continues to receive contracts from its previous customers, many of whom are Fortune 500 Companies. Lockwood Technology has been selected under a prime bidder to bid on a large state contract for Enterprise Asset Management System (EAMS) for the Government of an East African country. The status of $20M USD bid is likely to be known by the end of the year. Lockwood Technology is also participating in another bid for Enterprise Asset Management System (EAMS).

In summation, I would like to thank our shareholders for their patience and perseverance and will continue to keep them apprised of our ongoing efforts and diligence to add value to their investment and trust in Infrax Systems.

Thank you Sam Talari Acting CEO of Infrax Systems 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(tm) 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(tm)), 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.

This news release was distributed by GlobeNewswire, www.globenewswire.com SOURCE: Infrax Systems, Inc.

CONTACT: Media Contact: Infrax Systems, Inc.

investors@infraxinc.com 727-498-8514

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