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

Saint Petersburg, Dec. 18, 2012 (GLOBE NEWSWIRE) -- 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 events;

We are awaiting a response from our bid to our first (of the two) East African Country's national RFQ (Request For Quote) for our Enterprise Asset Management Software (EAM) product and services. We have placed the bid under a major prime contractor from that region. The exact value of the total contract is unknown but it is expected to be around $20,000,000. Based on the presence of the major prime contractor, we consider the outcome of this bid to be very favorable to Infrax and its subsidiary, Lockwood Technology. We have also entered our RFI (Request for Interest) under the same prime contractor for the second East African country and we expect to file a bid for that project no later than March 2013.

Lockwood continues expanding its presence with its current fortune 500 customers by its newly released version 11.5 EAM. We expect to start working on the next Gen EAM with *big date* and *big data analysis* in second quarter 2013.

Lockwood Technology is effectively continuing its CIVIL RICO litigation and so far has had favorable outcome. Due to the ongoing nature of this lawsuit, we are unable to furnish further detail without compromising our position.

We are continuing our dialogue with a prominent utility, with millions of customers, interested in potential pilot projects for their customers. Thier interest resides in our new approach to security and communication through the development of our Secure Network Interface card (SNIC) in partnership with PowerCon Systems. We are in discussions with this particular utility and others to complete all due diligence and proper documentation to ascertain any contract and revenue opportunities. We believe 2013 to be an important year for our Company and our products.

LOCKWOOD IPO - We have made considerable progress on the preparation and eventual filing of the S1 for the IPO of Lockwood Technology. We are anticipating a third quarter dividend date although we cannot guarantee the actual date which is dependent on SEC, FINRA and their approval process. Although the opening price of the IPO will be based on many factors (such as revenue and contracts), we anticipate a price range of between $0.20 and $1.00 per share. Again, 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.

In summation, in 2012, although faced with many challenges and difficulties, Infrax Systems has grown exponentially and has taken important steps in solidifying its presence within the power industry. It has fulfilled its technological promise in the smart Grid and the power grid as a whole. We believe that we have passed our darkest hours and the light of our technology will shine our way toward revenue and profitability starting in 2013.

Last but not least, on behalf of the employees of Infrax Systems, we wish all of our shareholders, customers and vendors a Merry Christmas and a Happy New Year.

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™ 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.

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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: Contact: Media Contact: Infrax Systems, Inc. 727-498-8514 Source:Infrax Systems, Inc.