Infrax (IFXY) Open Letter Announcing Our Recent Corporate Action

ST. PETERSBURG, Fla., Aug. 23, 2011 /PRNewswire/ -- INFRAX SYSTEMS, Inc. (OTC BB: 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, as approved by their majority shareholder, has filed to reverse split the Company's common stock with the Financial Industry Regulatory Authority ("FINRA").

The 1 for 500 reverse stock-split is scheduled to take effect on or about September 9, 2011 with the "Record Date" of August 26th, 2011. Upon approval of the Reverse Split, FINRA will change our trading symbol from IFXY to IFXYD temporary for trading purposes. The Certificate of Change was approved and adopted by the Board of Directors in accordance with the applicable provisions of the Nevada Revised Statutes. After the effectiveness of the Reverse Stock Split, the Board will file with the State of Nevada to decrease the number of authorized shares of the Company's Common Stock from 5,000,000,000 to 200,000,000 shares. The reverse will also affect all series of Preferred.

"The Board of Directors feels that the time is right for this action given our pending acquisitions, discussions with large utility customers and licensers' of our technologies," stated Sam Talari, Infrax Co-Chairman. "Deciding on this event was not an easy decision and a very hard pill to swallow, but the clarity began more apparent with the overall market condition and our declining stock price in which we believe showed only a resemblance of our net tangible & intangible book value hence exposing us to a potential hostile takeover. We believe that our current technology holdings, our current customers, our future smart grid customers, our future licensers of our technologies and our current and future patent portfolios are and shall demand valuations exceeding far above what we have traded at the highest point within our trading history. Although there is an inherent risk in any corporate actions, we believe that this decision by our board will enable us to execute our business plan most efficiently while safe guarding our Company and its valuable assets for our shareholders."

The Reverse Split/Share Reduction Amendment was approved for several reasons including but not limited to:

• At the stage we are in with several utility clients, it is important that our share price be perceived positively;
• As we proceed with our relationship with major meter manufacturers, it is important that they and their distributors perceive Infrax as a long term partner in the smart grid sector;
• A stronger company will aid in the continued recruitment of world-class talent as we expand operations, increase production, and enter new global markets;
• To help close our open acquisitions hence increasing our patent and technology portfolio.

"We have made great progress over the past few months and it is important that going forward we are viewed as a legitimate Company within our market sector by our clients and partners," said Paul J. Aiello, Infrax CEO. "With the recent actions or filings by our major competitors to go public, we expect that our action will increase institutional and analyst interest in our products and services."

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 [email protected] 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.

Contact:
Media Contact:
Infrax Systems, Inc.
[email protected]
727-498-8514

SOURCE INFRAX SYSTEMS, Inc.

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