INX 8-K INX Announces Record Second Quarter Results

2nd Quarter
Ended June 30, 2008

INX Inc.

Nasdaq: INXI

www.INXI.com

August 12, 2008

Financial Results

Agenda For Conference Call

1.Brian Fontana, CFO will present the results for the quarter and discuss
certain financial trends

2.Mark Hilz, President & COO will provide an industry update and discuss
recent achievements, activities and events

3.Jim Long, Chairman & CEO, will discuss INX’s outlook for the future

4.Take questions

GAAP Reconciliation and
Forward-Looking Statements

All financial results shown are for continuing operations unless otherwise noted

GAAP Reconciliation

Safe Harbor Statement

Non-GAAP Financial Measures

Presentation of non-GAAP net income provides a consistent basis for
comparison to historical periods based on results that management views as the
key measurements of financial performance

Non-GAAP net income is net income on a GAAP basis adjusted for:

Non-cash equity-based compensation

Non-cash income tax expense

Discontinued operations

Realization of deferred tax assets and expectation of future taxable income are
expected to result in income tax expense for the remainder of 2007 at an
effective rate of approximately 45%

Statutory tax rate of approximately 36% will differ from effective tax rate of
approximately 45% because of timing differences of the deductibility of certain
book expenses for tax purposes

Substantially all book tax expense is expected to be non-cash for federal income
tax purposes during the remainder of 2007 because of a net operating loss
carryforward of approximately $3.0 million at June 30, 2008.

Second Quarter Ended 6/30/2008 Results

Reconciliation of GAAP to Non-GAAP Net Income
For 2nd Quarter Ended 6/30/2008

(Dollars in thousands, except EPS)

6 Months Ended 6/30/2008 Results

(Dollars in thousands, except EPS)

Reconciliation of GAAP to Non-GAAP Net Income
For 6 Months Ended 6/30/2008

(Dollars in thousands, except EPS)

Balance Sheet Data

(Dollars in thousands)

Gross Margin
Product vs. Services Revenue Sources

Product gross margin has trended upward slightly over a multi-year period, a function of
our increasingly high value-add solutions and increasing business from repeat customers

Services gross margin declined in 2005 and 2006 due to rapid national expansion and
start-up of new practice areas, both of which increased engineering and other categories
of costs of service in advance of service revenue production; improving recently as
benefits are realized; two recent quarters are in our target range of 30%-35%

Gross and Operating Profit Margin

Gross profit margin on total revenue has trended higher upward over the past several
years due to improving mix of service revenue and improving gross margin on both
product revenue and service revenue; in 1H-2008 this trend continued

Operating profit margin turned positive in 2004, then declined in 2005 and 2006 as we
executed on rapid geographic expansion and introduced new practice areas, but has
improved since 2006 as benefits of expansion have begun to be realized

* 2005 results exclude one-time non-cash charge of $5.7 million

Operating Income / Capital Used In Operations

Improving operating income relative to the amount of capital used to generate such operating
income is key to improving long-term shareholder value

Careful use of capital for acquisitions and other investments used to generate improving
operating income has resulted in substantial improvement on the return on the capital used
for such operations

The ratio of operating income to capital used in operations, defined as trailing 12-month
operating income divided by average equity capital plus debt minus cash, has improved to
23.7% at 6/30/2008 compared to 13.5% one year earlier

Industry Update

Unified Communications is still in it’s infancy.Cisco and Microsoft are
accelerating development of new offerings.

The movement towards a virtualized Data Center environment that is connected
via the “IP network” will present a huge new area of opportunity for INX. Storage,
Security as well as Routing and Switching will be major areas for growth in this
new environment.

Web 2.0 enterprise applications are moving into the enterprise environment and
will increase the use of video in the enterprise.

Telepresence solutions offer a major step up in interactive video collaboration
with CD quality audio and HD video that has life-size images.

Customer ROI in these areas continues to advance and present the customers
with many compelling improvements in areas such as productivity, reliability and
consolidation for lower operational cost

Recently Announced Achievements

1/23/2008 - contract to supply up to $21 million for Department of Defense

2/14/2008 - gained Cisco “Powered Managed Services Provider” status

2/20/2008 - gained Cisco “Master of Security” status

3/25/2008 - began selling Cisco TelePresence solutions and became a Cisco
TelePresence Advanced Technology Partner

4/15/2008 - $8.4 million U.S. Corps of Engineers services contract win

6/4/2008 - Increased senior operating credit facility to support growth

6/9/2008 - Acquired AccessFlow, Inc. - entering market for virtualization

6/26/2008 - Closed $9.9 million equity raise to support further growth

Staffing Trends -
Investing In Staffing To Produce Growth

We continued to add staff during the most recent quarter, continuing to invest
for continued growth

Direct revenue-producing staffing increased 30% in 1H-2008 compared to 13%
increase for non-direct revenue producing staff

Staffing Trends -
Recent Quarter

During the 2nd quarter we continued to add staff

Entering the virtualization space and adding Cisco TelePresence requires that
we staff up with talent required to rapidly grow in these new areas

Direct revenue-producing staffing increased 17% during the 2nd quarter
compared to a 3% in operations and administrative staffing

Outlook - - 2 of 3 Drivers Of Year-Long Industry-Wide
Slowdown Are Subsiding

Since ~ July 2007, certain customers have been fearful of the possibility of a
      recession, and certain categories of customers continue to worry about the
      future of the economy and how their business will be impacted, causing them

      to delay moving forward with some capital expenditures

Since ~ July 2007, large enterprise customers have been anticipating the
      benefits of lower interest rates as the Fed began an easing cycle - the easing
      cycle appears to be at an end, which is prompting some customers to move
      forward with capital expenditure projects

      Since ~ December 2007, corporate enterprise customers began to anticipate
      the possibility of a Federal government economic stimulus package
      containing provisions to stimulate capital spending by businesses - this was
      signed into law in February 2008

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Outlook - - Recent Catalysts For Continued Growth

Recent services contract of $8.4
million, majority of which will be
recognized over the remainder of 2008
calendar year - increase in higher
margin service revenue

Recent Cisco relationship
achievements present opportunities:
TelePresence Advanced Technology
Partner; Master of Security; Cisco
Powered Managed Services Partner

Year-ago introduction of network
storage and network security yielding
results - - (242% and 58% growth
respectively for 2007) + new addition
of virtualization practice

Data center trends (storage, iSCSI,
FBOE) combined with Cisco’s recent
new product announcements in this area
(Nexus line) is creating new growth
opportunities + AccessFlow

Boston-based Select, Inc. acquisition is at
the end of its ~6-9 month typical
integration period, following which we
have normally seen above-average
revenue growth from past acquisitions

Continued recent investment in hiring of
revenue-generating employees -
engineering staff +30% and sales staff +
13% in 1H-2008

Outlook - - Q2 & Longer-Term Expectations

For Q2-08 we expect:

Total revenue in the range of $64-$69 million, an increase of 23%-33%
compared to prior year period revenue of $52.0 million

Services revenue in the range of $10-$12 million, an increase of 48%-
77% from the prior year period service revenue of $6.8 million

We continue to maintain our long-term target ranges for gross profit of 15%-
19% for products and 30%-35% for services, and for operating profit margin
in the range of 4%-7%, the achievement of which is dependent upon
leveraging certain operating expenses against continued revenue growth

Summary / Highlights

2st Quarter Results

Outlook