Open Letter to Infrax Systems (IFXY) Shareholders

ST. PETERSBURG, Fla., Aug. 1, 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, today issued the following letter to our shareholders from our CEO Paul Aiello:

Dear Fellow Shareholders,

As I have in the past, I wanted to update all of you on our business, strategy and vision. With all of our current activities, I thought that an update was appropriate.

During the first seven months of this year we have continued to move forward on our vision to provide intelligence, connectivity and security to the global energy grid.  We believe now more than ever, that Infrax is on the right path and that the security issues facing the energy grid are finally getting the attention of officials around the globe.

Just in the last few months, the news has been filled with comments by analysts and government officials regarding cyber terrorism.  On June 7th, the Boston Herald reported that the "US was bracing for digital attacks on the power grid and water supply", on June 9th, USA Today reported that Leon Panetta said that "Cyber Attacks are among the blizzard of defense challenges", and just last week the US Department of Homeland Security issued a bulletin on the potential terrorist threats to private sector utilities.

Infrax Systems' Secure Intelligent Energy Platform will be a major security component 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 have continued to focus on adding depth of products and capabilities through strategic acquisitions. We purchased controlling interest in Lockwood Technology in April of 2011 to obtain access to their proprietary asset management technology. Their unique technology has been deployed by thousands of customers and will ultimately be incorporated into our platform for meter data management. In addition to their software systems, Lockwood provides world class RFID solutions for security, asset and personnel tracking and public safety applications.  

We are very excited about the addition of the Lockwood team and applications and will be providing additional details on their recent activities in the coming weeks.

We have entered into an LOI to purchase the preeminent mission critical, infrastructure design and construction firm in the Southeast.  Southern Power & Controls technical team's expertise in the implementation and maintenance of complex electrical and control systems will significantly augment Infrax's technical capabilities, especially as it relates to switchyards, substations and distribution systems. Their reputation and experience will enable us to expand our relationships with electric utilities and their experience with water and gas utilities will open additional markets for our security and communications solutions.

We strongly believe that the addition of Lockwood Technology and Southern Power & Controls greatly strengthens our Secure Intelligent Energy Platform and will be key elements as we continue to pursue our vision to be a dominant security solutions provider in the smart grid energy sector.

Current Activity

Our development activities with the initial version of the Secure Network Interface Card (SNIC) are progressing on plan as we are working with multiple partners on that front. We are also completing the testing of the UMAX nodes for metering applications and will be releasing this product shortly.

During the last quarter, our outstanding proposal activity increased substantially. Currently we have over $4,000,000 in active proposals and expect to begin closing some of this activity in the coming quarter.

Lockwood Technology closed several municipal transactions in the quarter, as well as renewed several support agreements.  We expect Lockwood to continue to release new products and capture new business going forward.

Our Future

While we still face challenges, we are confident that we are positioned to make our vision a reality.  Our products continue to evolve to meet the demands of a market in its infancy, one with amazing potential.

We believe that we are the only solutions provider in our space focused on securing both communications and meter data. The positive interest in our solutions is evidenced by our growing proposal backlog.

We believe that the security of the grid and all of the associated access points is a matter of national security and global importance.  As we continue to move forward, we will continue to develop relationships with best in class partners and will, where appropriate, acquire additional companies and rights to technology.  

Our strength and strategic advantage is based on our people, our experiences in and understanding of the utility sector, and our loyal shareholder base. Together, we will continue to create a company that is both successful and relevant.

I continue to be pleased with our progress and am looking forward to delivering on our commitments in the months ahead.

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 [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.