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Xbox 360 to Feature Fonix Voice Technology

Fonix and Microsoft deliver voice recognition on the next-generation Xbox

SALT LAKE CITY, UT (May 31, 2005) Fonix Speech, an operating division of Fonix® Corporation (OTC BB: FNIX), an integrated communications carrier providing telecommunications services and value-added speech technologies, announces an agreement to continue to deliver Fonix voice command technology the Xbox 360TM videogame and entertainment system from Microsoft.

"Microsoft is pleased to continue its relationship with Fonix for Xbox 360," says Brian Schmidt, Program Manager, Audio and Voice Technologies, Microsoft. "By incorporating Fonix's speech recognition technology into our Xbox 360 development kit, game developers can give players a fun and natural way of interacting with their games."

"Working with Microsoft enables Fonix to offer market-leading voice command solutions for next-generation products and to offer new interface possibilities for game developers and players," says Tim K. Hong, VP, Fonix Games. "Fonix looks forward to contributing to a new generation of videogames as developers use Xbox 360 to showcase greater possibilities for voice recognition in games."

Xbox games currently shipping with Fonix voice command technology include Tom Clancy's Rainbow Six 3, Tom Clancy's Rainbow Six 3 Black Arrow, Tom Clancy Rainbow Six: Lockdown, and Tom Clancy Ghost Recon 2, all published by Ubisoft, Delta Force-Black Hawk Down, published by Novalogic and SWAT: Global Strike Team, published by Vivendi Universal Games.

About The Fonix Speech Group

The Fonix Speech Group, an operating division of Fonix Corp., currently offers voice technology solutions for mobile/wireless devices; interactive videogames, toys and appliances; computer telephony systems; the assistive market and automotive telematics.

About Fonix

Fonix Corp., based in Salt Lake City, Utah, is an innovative communications and technology company that provides integrated telecommunications services and value-added speech technologies through Fonix Telecom Inc. and The Fonix Speech Group. Visit www.fonix.com for more information, or call (801) 553-6600 and say "Sales."

Investor Contacts: John Nesbett or Gino de Jesus

Media Contact: Andrea Faville

The Investor Relations Group

11 Stone St., 3rd Floor

New York, NY 10004

(212) 825-3210

mail@investorrelationsgroup.com

Fonix Contact: Elizabeth Sweeten

(801) 553-6600

mediainfo@fonix.com

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.

Xbox, Xbox 360, and Xbox Live are either registered trademarks or trademarks of Microsoft Corporation in the United States and/or other countries.

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