INTERNAL FIXATION SYSTEMS Inc OTC QB IFIX Bringing

INTERNAL FIXATION SYSTEMS, Inc. (OTC. QB IFIX) Bringing Superior Value to Orthopedic Implants

Forward Looking Statements This presentation contains projections and forward-looking information that involve various risks and uncertainties regarding future events. Such forwardlooking information can include without limitation statements based on current expectations involving a number of risks and uncertainties and are not guarantees of future performance of Internal Fixation. There are numerous risks and uncertainties that could cause actual results and Internal Fixation’s plans and objectives to differ materially from those expressed in the forward-looking information, including: (i)Internal Fixation’s inability to remain current in its reporting obligations with the SEC; and (ii) Internal Fixation’s inability to secure the financing necessary to continue its operations. Actual results and future events could differ materially from those anticipated in such information. These and all subsequent written and oral forward-looking information are based on estimates and views of management on the dates they are made and are expressly qualified in their entirety by this notice. Except as required by law, IFS does not intend to update these forward-looking statements.

Superior Value Quality, U. S. -made Orthopedic Implants sold for 40 -50% less than the competition. Value is created through innovative set design, flexible distribution pathways, responsible inventory management, and standardization of instruments and components across multiple products.

IFS Product Development Process Identify Product Evaluate Competitive Products IFS National Advisory Panel Suggests Enhancements , Improvements Manufacture Redesigned Product

Currently FDA Approved Products • • • 2. 0 / 2. 4 cannulated screw system 3. 0 cannulated screw system 4. 0 cannulated screw system 5. 0 cannulated screw system 6. 5 / 7. 3 cannulated screw system Phalangeal Fixation Systems 1. 5/2. 0/2. 7 cortical screws Modular Locking Small Fragment System Basic Ankle System – Bi-Malleolar Set Comprehensive rear foot reconstruction system Pilon Fracture plate system Volar Distal Radius / Forearm FX System Clavicle Fx System Proximal Shoulder Plating System Elbow Fx Plating System Acetabular FX and Plating System MPJ Fusion System Lapidus Plating System Midfoot Fusion System • Locking Large Fragment System Periarticular FX and Plating System – Proximal Tibia Periarticular FX and Plating System – Distal Femur • Locking Mini Fragment System Metacarpal FX and plating system Metatarsal FX and plating system These products will cover 70% of the Orthopaedic Fixation Market

Market Overview Healthcare Reform and Existing Industry Trends Position the Othopaedic Implant Market for Change

Current Market Leaders Cannulated Screws Plate and Screw Systems 4. 1% 6. 9% 7. 4% 8. 7% 49. 7% 13. 5% Synthes Zimmer Smith & Nephew Stryker De. Puy Bionet Others 4. 3% 2. 5% 3. 4%1. 2% 7. 9% 8. 2% 11. 2% © i. Data Research Inc Synthes De. Puy / Hand Innovations Smith & Nephew Zimmer Stryker 61. 3% Biomet Acumed Others

Orthopaedic Implant Market Summary • The U. S. market for Orthopaedic Implants is large and continues to grow. It is expected to reach $34 Billion by 2014. • The market is dominated by companies that employ premium pricing strategies. • There is downward pressure on prices from hospitals and ASCs for products used to treat common fractures. • Many Healthcare Facilities are limiting the number of vendors and using Group Purchasing Organizations and Accountable Care Organizations to help control costs. • No longer is the physician in exclusive control of implant decisions. Increasingly purchasing decision makers are looking at cost.

Effects of Health Reform on Implant Industry • As of 2010 Medicare no longer reimburses separately for implants • The cost of implants now part of the overall fee • Commercial payers will follow Medicare • Facilities seeking lower cost alternatives IFS is positioned well for these changes !

Bimalleolar Ankle Fracture $1226 - $1354* $1645 - $1877* $630 -$710* Average Cost Savings Per Procedure: Standard Implants Used • 1/3 Tubular Plate • 4 -6 3. 5 -4 mm Cancellous or Cortical Screws • (2) 4. 0 Cannulated Screws • 1 -2 Drill Bits, 2 -3 K-Wires 48% Less than Synthes ($596 -$644) 62% Less than Stryker ($1015 -$1167)

Management Team • Stephen J. Dresnick, MD – President and CEO • • • Former Founder and CEO of Nasdq listed Sterling Healthcare Well respected healthcare innovator and entrepreneur Laura Cattabriga – Chief Financial Officer Laura has a Masters of International Business from George Washington University. She has worked on start-up companies, market expansions and has managed companies and organizations going through restructuring. She has been responsible for aggressive growth plans that include developing organizations as well as increasing revenues • Kenneth C. West – Vice President, Sales. Ken previously served as Sales Representative, Regional Sales Manager and Distributor for many of the top Orthopaedic and spine surgery companies such as Stryker Corporation, J&J – Depuy. Acromed, Synthes USA, Nexa. Orthopaedics, and Trans 1 Inc • Arica Finnieston, Vice President, Product Management Arica has over 16 years of experience in the medical device industry, specifically in orthopedics. Prior to joining IFS, Ms. Finnieston held positions as Global Marketing Director for Maramed Orthopedic Systems, Global Marketing Director for Bio. Sculptor Corporation, and Global Product Manager for Trulife. Her experience in orthopedics combines manufacturing, R&D, marketing, strategy and product management. IFS management team has extensive experience in the orthopaedic, medical device, and healthcare industries combined with a track record of starting and growing successful companies.

Modular Set Design

Sales Since Launch of Small Fragment Systems 140000 120000 100000 80000 60000 40000 20000 0 Q 1 11 Q 2 11 Q 3 11 Q 4 11

Current Distribution

Current Distribution • • Florida Georgia Arizona Indiana New Hampshire Massachusetts Connecticut California • • Louisiana Wyoming Montana Oregon Washington Maine Rhode Island Alaska

Projected Sales Growth Sales Gross Profit Margin EBITDA 2012 2013 $5, 268, 365 $16, 411, 318 60% $1, 022, 131 $6, 226, 819 2014 $31, 489, 641 60% $13, 276, 131

Company Milestones October 2011 – Initial Release of modular locking plates January 2012 – Release of Straight plate module March 2012 – Initial Release of Large Cannulated Screws March 2012 – Initial Release of Temporary External Fixator

Capital Needs Build new inventory/surgery sets for existing products Inventory and sets for new products Additional manufacturing capacity Develop Overseas markets Enter Veterinarian Market Working Capital Build-out Distribution Network Marketing

Product Licensing Advantages • Use existing 510 K • Can get sets consigned • Only need to file as repackager • Can expand territory much quicker

Barrier to Entry for New Players • Requirements for Market Entry – – FDA approval Distribution network Significant capital Depth of product to gain attention in the market place • Additional Factors: – Difficult to gain surgeon support – Manufacturing takes significant trial and error to get it right • There a few companies trying to offer lower cost products manufactured outside of the U. S. Quality of both the raw materials (e. g. surgical grade stainless steel) and the products themselves, has been inconsistent. • This is a business where quality is VITAL and lesser products, even if attractively priced, will not be accepted.

IFS Investment Highlights • Surgical Implant Costs have been rising 8 -10% per year • By focusing on every-day products instead of block-buster products, IFS has much lower R&D costs • Implant Industry is $35 Billion market in US • Innovative set design, new distribution pathways, use of standardized instruments and components across product lines, and aggressive inventory management mean lower costs to the consumers while maintaining industry margins • IFS preferred by leading surgeons • Based on early market experience IFS is seeing a 90% conversion rate from existing products to ours (including major academic centers) IFS delivers doctor preferred designs at a superior value (40 -60% less than competitors)

Stock Overview Symbol - OTCQB: IFIX

OTC. QB (IFIX) For more information: 786 -268 -0995 Stephen Dresnick, MD sdresnick@ifsusa. net Laura Cattabriga laura. cattabriga@ifsusa. net 5901 SW 74 th Street, Suite 408 South Miami, FL 33143 www. ifsusa. net