Fonix Unveils Dynamic Grammar Feature for PS2 and PC Game Consoles at E3 Conference and Expo

Business Wire, May 11, 2004

Business Editors/High-Tech Writers

E3Expo 2004

SALT LAKE CITY--(BUSINESS WIRE)--May 11, 2004

Fonix VoiceIn(TM) speech interface for cross-platform

game developers now allows gamers to speak

natural-sounding sentences and phrases

Fonix(R) Corp. (OTC BB: FNIX), an industry leader in delivering conversational speech solutions to consumer systems and devices for everyday use, announces new grammar capabilities for VoiceIn(TM), our award-winning software solution for voice command and control in PlayStation(R)2 and PC games. Fonix VoiceIn is available for a per-title, per-platform licensing fee.

Fonix sales team members will share VoiceIn and the new grammar feature at the E3 conference and expo at the Los Angeles Convention Center from May 11-14. Fonix representatives will be available to answer questions and discuss license agreements. Game developers and publishers interested in meeting with Fonix representatives at the show should call 801-553-6600 and say "E3 Appointments."

"Clearly, the addition of grammar support blows open the evolving uses for voice commands in game play," said Tim K. Hong, vice president Mobile Wireless & Games for Fonix. "VoiceIn's grammar features provide game developers with the ability to create even more immersive game experiences. VoiceIn's dynamic grammar feature now provides gamers and developers the most robust speech interface with the smallest memory footprint available. Players can now issue command strings in addition to single-word commands, which makes the act of playing even more natural and gives developers greater flexibility and creativity as they design game scenarios."

Fonix VoiceIn is our unique voice interface software for cross-platform game developers wishing to employ voice command and control in games. This interface, already a "Best Innovation" award winner, now features grammar support. Grammar nodes allow developers to create game situations where players may issue strings of commands in addition to single-word commands. VoiceIn's grammar feature makes it possible for players to speak complicated word combinations and sentences.

Fonix VoiceIn is the industry's most memory-efficient voice interface. "The gaming industry is on the brink of a new era of creativity in development," said Hong. "Speech interfaces give developers a host of new possibilities for involving players in fun, interesting game scenarios and give publishers a competitive advantage by including compelling new features."

The Fonix voice interface, initially available in the Xbox XDK, was licensed by Electronic Arts for PlayStation(R)2 games in February 2004. The first two games using Fonix voice command based on the Xbox(R) video game system were released in October 2003. Tom Clancy's Rainbow Six 3, published by Ubisoft, and SWAT: Global Strike Team, published by Vivendi Universal Games, received industry accolades for implementing Fonix voice commands and making the games more immersive and fun to play.

Game developers interested in implementing Fonix VoiceIn in PlayStation(R)2, Xbox(R) and PC games should call 801-553-6600 and say "Game Consoles."

About Fonix

Fonix Corp. is an industry leader in delivering conversational speech solutions to consumer systems and devices for everyday use. Manufacturers and developers incorporate Fonix's award-winning technology to provide their customers with an easy, convenient and reliable user experience. Fonix currently offers voice technology for mobile/wireless devices; computer telephony systems; game consoles, toys and appliances; the assistive market; and automobiles. Fonix recently acquired LecStar Telecom Inc., a rapidly growing Atlanta-based regional provider of integrated communications services to businesses and consumers. LecStar offers a full array of wireline voice, data, long distance and Internet services to business and residential customers throughout BellSouth's Southeastern operating territory. LecStar's solid customer base offers a unique direct marketing and distribution channel for Fonix speech technologies and solutions. Visit www.fonix.com for an introduction to Fonix's complete suite of speech solutions, or contact a Fonix representative at 801-553-6600 and say "Sales."

Investor contact:

The Abernathy MacGregor Group

Winnie Lerner, wal@abmac.com

Loren Iati, lai@abmac.com

212-371-5999

The statements released by Fonix that are not purely historical are forward looking within the meaning of the "Safe Harbor" provisions of the Private Securities Litigation Reform Act of 1995, including statements regarding the company's expectations, hopes, intentions and strategies for the future. Investors are cautioned that forward-looking statements involve risk and uncertainties that may affect the company's business prospects and performance. The company's actual results could differ materially from those in such forward-looking statements. Risk factors include general economic, competitive, governmental and technological factors as discussed in the company's filings with the SEC on Forms 10-K, 10-Q and 8-K. The company does not undertake any responsibility to update the forward-looking statements contained in this release.