INX 8-K 2008 IT Supply Chain Conference

1

Raymond James

2008 IT Supply Chain Conference

INX Inc.

Nasdaq: INXI

www.INXI.com

November 18, 2008

Jim Long, Chairman & CEO

Brian Fontana, CFO

GAAP Reconciliation and
Forward-Looking Statements

All financial results shown are for continuing operations unless otherwise noted

GAAP Reconciliation

Safe Harbor Statement

Overview - - INX Inc.

NASDAQ GM:INXI

Shares Outstanding: ~8.7MM

Float:~6.7MM

Diluted shares:~9.3MM

90-day avg. volume:~25,000

Headquarters:Houston, Texas
(corporate administration) and
Dallas, Texas (operations)

Presentation Agenda

1.  Stock price performance & valuation

2.  Overview of INX operations and the industry in which INX participates

3.  Operating financial performance

4.  Balance sheet, liquidity & credit availability

5.  Update on recent trends in our business, our strategy for improving
     shareholder value during the current economic slowdown & our outlook

6.  Update on 11/14/2008 acquisition of NetTeks

Stock Price Performance

&

Valuation

2-Year INX Daily Stock Graph As of 11/7/2008

INX Enterprise Value / Operating Income

Enterprise Value / Operating Income is a way of viewing historical INX per-share valuations in a
more stable and consistent manner than EPS multiples

Historically, the quarterly average daily closing price of shares of INX common stock has resulted in
Enterprise Value / trailing 12-month Operating Income multiples of between ~12x and ~60x

At recent $5.50 share price, this multiple is at a historic low of ~6.4x based on trailing 12-month
gross profit and diluted shares used to compute 3Q08 diluted per share data

*Enterprise Value is based on the number of diluted shares used to compute diluted earnings
per share for the quarter times the average daily closing price of shares during each quarter.

INX Enterprise Value / Revenue

Enterprise Value / Revenue is an overly simplistic way of viewing historical INX per-share
valuations, but one that is sometimes evaluated by investors in periods of earnings aberrations

Historically, the quarterly average daily closing price of shares of INX common stock has resulted in
Enterprise Value / trailing 12-month Revenue multiples of ~0.26x to ~0.47x

At recent $5.50 share price, this multiple is at a historic low of ~0.14x based on trailing 12-month
gross profit and diluted shares used to compute 3Q08 diluted per share data

*Enterprise Value is based on the number of diluted shares used to compute diluted earnings
per share for the quarter times the average daily closing price of shares during each quarter.

0.14x

INX Enterprise Value / Gross Profit

Enterprise Value / Gross Profit is a way of viewing historical INX per-share valuations in a more
stable manner than net income multiples, and has more meaning than revenue multiples

Historically, the quarterly average daily closing price of shares of INX common stock has resulted in
Enterprise Value / trailing 12-month Gross Profit multiples of between ~1.6x and ~2.5x

At recent $5.50 share price, this multiple is at a historic low of ~0.7x based on trailing 12-month
gross profit and diluted shares used to compute 3Q08 diluted per share data

*Enterprise Value is based on the number of diluted shares used to compute diluted earnings
per share for the quarter times the average daily closing price of shares during each quarter.

0.7x

Operations

&

Industry

Managed Services

Professional Services

Products

The INX Solutions Set

Selling network, IP telephony,
network security, wireless,
security, network storage and
virtualization products

Network assessment and
design consulting and
implementation services,
billed hourly or by project

15%-19% target gross margin,
a level we have been
achieving

30%-35% target gross margin,
trending towards this range

12%-15% of total revenue

Monitoring and management
of the customer’s network
and network-related devices

40%-50% target gross
margin, trending towards this
range

1%-3% of total revenue and
growing

80%-85% of total revenue

33% growth for 2007

29% growth for 2007

70% growth for 2007

No working capital required

Modest working capital
required

Modest working capital and
substantial investment capital
required

Increasing IP Network Importance & Complexity
Benefits Focused Solutions Providers Like INX

Voice / Video

Wireless Access

Storage

Collaboration

Security

Demand For Focused Solutions Provider Services

Routing & Switching

Enterprise organizations are realizing
that the IP network is rapidly becoming
the platform for all forms of
communications, while at the same time
the network is becoming more complex.
INX is benefiting from this trend.

Virtualization

Growth Strategies

Geographic expansion

Grow both the number and the size of clients

Make selective, strategic, accretive acquisitions

Expand into select, complementary categories of technology such as recent
additions of network security, network storage and virtualization as focused
practice areas

Geographic Expansion -

3X Growth Since Mid-2005

Houston

San Antonio

Dallas

El Paso

Albuquerque

Los Angeles

Eugene

Portland

Seattle

Washington

(Federal)

Boston

(2)

Boise

Sacramento

Increasing Number and Size of Customers

We serve U.S. “enterprise”
organizations - - corporate, state and
local government, federal government,
and education - with 200 to 50,000
employees

As we have become more of a
“national” scope organization, we have
been able to win larger customers and
transactions

As we continue to grow our national
presence we believe our ability to win
larger-sized customers will continue to
be enhanced

No material direct exposure to
problematic industry sectors such as
homebuilding, mortgage companies,
investment banking, etc.

Competition:National Presence +
Focus & Expertise Are Competitive Advantages

High focus

& expertise

Low focus

& expertise

Low geographic

presence

High geographic

presence

INX’s increasingly

national presence,

combined with a high

level of focus and

expertise, is a

competitive advantage

with large, national-

presence customers

Small, focused,

regional solutions

providers

Large IT solutions

providers and

telecom carriers

Small, generalist

VARs & IT solutions

providers

Operating Financial Performance

Staffing Trends
- Key To Both Growth and Improving Margins

Dec 31,

2004

+156%

+278%

%

Incr.

Jun 30,

2008

%

Incr.

+13%

+30%

1H-2008

For 2007, direct employee costs were68%of total operating expenses, so leveraging
employee costs is key to improving operating profit margin;sales staff and engineering
staff are direct revenue producing staffing, and we have been able to leverage non-direct-
revenue-producing staff - key to improving profit margin

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

During Q3-2008, sales staffing increased 11% - key to capturing market share

Long-Term Trend

Q3-2008

%

Incr.

Sep 30,

2008

+5%

+1%

vs.

vs.

vs.

Dec 31,

2007

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%

For the most recent quarter, gross margin declined somewhat for both categories of revenues,
for different reasons, including efforts to gain market share in a recessionary environment,
services costs related to propagating our new virtualization practice area company-wide

Gross and Operating Profit Margin

Gross profit margin on total revenue has improved 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, but for Q3-08 margins declined

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 improved
after 2006 as benefits of expansion began to be realized

For Q3-08, margins declined due to the recessionary environment, efforts to gain market
share and efforts to ramp up our new virtualization practice area company-wide

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

Improving Per Diluted Share Operating Results

On a per diluted share basis, INX has materially improved all key aspects of operating
performance, including:

Revenue per share +30% over past 21 months, +16% over past 12 months

Gross profit per share +34% over past 21 months, +23% over past 12 months

Operating income per share +154% over past 21 months, +57 over past 12 months

Improving Return On Capital Used In Operations
(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
deployed to generate such operating income

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
substantially

Balance Sheet

Liquidity

& Credit Availability

Improving Balance Sheet

INX’s balance sheet has shown substantial improvement; currently stronger balance sheet
than at any recent time

Stockholders equity and net cash per diluted share have both improved substantially over
the past 21 months

Maximum leverage, measured in terms of the debt/equity ratio, has been around a maximum
of 20%, and is at 0% at 9/30/2008

Balance Sheet Data

(Dollars in thousands)

Simple Balance Sheet / High Quality Assets

(Dollars in thousands)

Tangible Assets at 9/30/2008

% of Total A/R Aged Over 60 Days At Month End

INX has a very simple balance sheet

Accounts receivable is the largest
tangible asset, followed by cash

INX has high quality enterprise
organizations as customers

No deterioration in aging of accounts
receivables over past year

Credit Availability and Liquidity

During Q3 we spent $557,000 to repurchase 79,940 shares under our repurchase plan

Record levels of cash on hand at $15.8 million, or $1.82 per share in cash

No funded (interest bearing) debt outstanding under credit lines

$60 million operating credit facility used to purchase product from vendors for resale to
customers had an outstanding balance of $39.4 million (subject to collateral availability)

$10 million credit facility available for acquisitions with zero balance

Generating positive cash flow from operations of the business:

Weak Q3 net income was $426,000

Q3 non-cash equity compensation expense was $429,000

Q3 non-cash depreciation and amortization expense was $664,000

Q3 non-cash income tax expense was $395,000

Update On Recent Trends In Business

&

Outlook

Market Developments

One year ago, on November 5, 2007, we reported that tight credit markets and worries over
a possible recession were causing slowing customer demand

On August 12th, 2008 we stated that we had seen sequentially improving bookings
between March and July, and that we believed customer demand was improving

For Q3-08, organic (excluding acquisitions) product order bookings increased by 34% y/y,
with the strongest y/y growth occurring early in the quarter in the month of July

Financial market turmoil in late September and early October caused a pause in customer
decision making, which together with credit availability issues, caused customer demand to
slow substantially in early October - organic bookings decreased by 26% y/y for the month
of October

However, organic order bookings improved for the most recent 4 weeks ended November
14th; bookings increased by 36%, 37%, 71% and 10% y/y respectively - while encouraging,
it is too early to know how much of the recent improvement is a “trend” vs. a “bounce”

Consensus thinking indicates that the U.S. economy has moved from a “slowdown” to a
true economic recession with negative GDP growth over the upcoming several quarters

Impact Of Recent Market Developments

The recessionary economic environment, combined with tight credit availability, will
negatively impact industry-wide customer demand near-term, and possibly for several
quarters, or even longer

INX’s industry is well positioned on a relative basis because unified communications
and data center virtualization are areas of cap-ex that result in tangible cost savings

Tight credit availability will likely cause some leveraged competitors to experience
capital constraints and related performance issues, and there will likely be a
redistribution of industry revenues based on balance sheet strength and credit capacity

INX can benefit because of our strong balance sheet and credit capacity

To take advantage of this market opportunity we must try to hire top sales and
engineering talent that becomes available, as well as make acquisitions

Hiring during a period of weakened customer demand will negatively impact operating
profit margin percentage in the near-term, but will improve earnings potential when
customer demand improves

Why We Are Optimistic About INX’s Prospects

INX currently has a small share of its target market, which target markets include some of
the best areas of technology, from a growth perspective

Unified communications is still in a state of relative infancy;the majority of enterprise
phone systems are still antiquated TDM PBX technology;many organizations can
experience a tangible ROI from deploying UC, beneficial in good or bad times

Network security issues will continue unabated, irrespective of economic conditions, and
failure to resolve security issues “is not an option” for most enterprises

Growth in network storage capacity, which occurs irrespective of economic conditions, will
continue to drive demand for upgrading storage;the natural path of upgrade is to newer
technology that INX is focused on deploying - INX started storage practice < 3 years ago

Virtualization of servers has one of the most compelling ROI metrics of any area of IT and
communications enterprise spending, and delaying the deployment of virtualization
because of an economic downturn is therefore illogical - new for INX since June ‘08

Virtualization of servers within the datacenter often requires an upgrade of the network
infrastructure within the datacenter, leading to “data center virtualization”

Web 2.0 enterprise applications are moving into the enterprise environment and will
increase the use of video in the enterprise, in turn increasing network load

TelePresence video communications solutions help save money by reducing travel costs
and this area of technology is expected to continue to grow - new for INX since April ‘08

Outlook
(Issued 11/6/2008)

We are expanding our range of expectations somewhat due to lower visibility as compared
to recent quarters, which reduced visibility is related to macro-economic uncertainty

For Q4-08 we expect:

Total revenue in the range of $61-$68 million, an increase of 8% to 20% compared
to prior year period revenue of $56.6 million

Services revenue in the range of $10-$12 million, an increase of 25%-50%
compared to prior year period service revenue of $8.0 million

We continue to maintain our long-term target ranges for gross profit margin 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

While we do not provide earnings guidance, we do expect that for the next two to three
quarters that both gross margin percentage and operating profit margin percentage will be
pressured somewhat due to our efforts to expand newer practice areas and our efforts to
aggressively gain market share

Outlook does not include the impact of acquisitions, if any, in the 4th quarter

11/14/2008

Acquisition of Boston-Based NetTeks

11/14/2008 Acquisition of NetTeks

NetTeks is a Boston-based network infrastructure, unified communications and network
storage solutions company

Founded 1997

Offices in Boston and Glastonbury Connecticut

Over 200 clients, ranging from mid-size commercial to larger enterprises

32 employees, 22 of which are services delivery personnel

Higher services revenue content compared to INX

Improves INX’s presence and depth of services capabilities in the New England market

INX brings increased financial capacity to fund growth, as well as deeper data center
offerings, and a “national presence” to help the acquired organization grow

Trailing 12-month revenue of ~$12.7 million;2-year “earn out” based on achieving ~10%
revenue growth and 4% operating income contribution in 1st year, and ~10% revenue
growth and 6% operating income contribution in 2nd year

(Dollars in thousands)

11/14/2008 Acquisition of NetTeks
Analysis of 1st Year Range Of Expectations

Note:“Operating Income Contribution”, or “OIC” is the direct operating income from the acquired
operations without any allocation of “corporate” expenses;estimated working capital required is
based on INX historical averages as compared to revenue; stock consideration paid at closing is
based on $5.27 share price

(Dollars in thousands)

11/14/2008 Acquisition of NetTeks
Analysis of 2nd Year Range Of Expectations

Note:“Operating Income Contribution”, or “OIC” is the direct operating income from the acquired
operations without any allocation of “corporate” expenses;estimated working capital required is
based on INX historical averages as compared to revenue;cumulative prior year taxed earnings is
the cumulative earnings of the acquired operations following the transaction taxed at 35%; stock
consideration paid at closing is based on $5.27 share price

(Dollars in thousands)

11/14/2008 Acquisition of NetTeks
Analysis of 3rd Year Range Of Expectations

Note:“Operating Income Contribution”, or “OIC” is the direct operating income from the acquired
operations without any allocation of “corporate” expenses;estimated working capital required is
based on INX historical averages as compared to revenue;cumulative prior year taxed earnings is
the cumulative earnings of the acquired operations following the transaction taxed at 35%; stock
consideration paid at closing is based on $5.27 share price

Summary

Excellent long-term track record of industry-leading
organic growth and executing on acquisitions

Well positioned for the economic recession:

Focused on growing areas of technology

Strong balance sheet

Operating performance over the past year, in spite of
overall weak customer demand, has been strong:

TTM revenue / diluted share + 16%

TTM non-GAAP net income / diluted share +53%

Plan to take advantage of current market conditions;
however, doing so will negatively impact near-term
quarterly profit margin due to hiring and aggressive
pricing to win new customers

Our current actions will position INX for strong
performance when customer demand improves