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Fonix Speech Recognition Technology will be Supplied to All Xbox Game Developers Via Xbox Software Development Kit; Fonix Text-To-Speech Available Via Upgrade

Beginning in the second half of 2002, the highly-accurate Fonix U.S. English ASR for game developers will begin shipping to all Xbox game developers via the official Xbox Development Kit (XDK), Microsoft's primary game authoring tool. During the remainder of 2002, Fonix will provide ASR for Xbox in the following languages: U.K. English, French, German, Italian, Japanese, Korean, and Spanish. The Fonix-enabled XDK will allow developers to create games that recognize the user's voice, permitting the user to direct on-screen action, input information, and otherwise interact verbally with the game environment.

``With the powerful technology behind Xbox, artists are able to attain their creative goals and realize their creative visions,'' said J Allard, General Manager, Xbox Platform, Microsoft. ``Fonix voice recognition will play a significant role in future Xbox game development, making the games more interactive and user friendly.''

``This announcement further demonstrates the expanding commercialization of Fonix ASR,'' said Kurt Flygare, vice president of sales for Fonix. ``Xbox is clearly one of the most prominent and influential entertainment technology platforms in the world today. Potentially, millions of users will have the opportunity to experience the power of Fonix as a result of this agreement.

``By becoming the speech recognition provider for Xbox, Fonix has once again proven it is on the cutting edge of natural-user interface technology,'' Flygare noted.

Fonix ASR powerfully discerns speech in multiple languages at normal speeds and intonations. The solution is speaker-independent and does not require training to the user's voice. It also accommodates finite-state grammar, which allows for complex speech input, and can detect speech in high background-noise environments. Among the key benefits of Fonix ASR technology for Xbox developers is a remarkably small footprint command-and-control engine that drives all onboard speech recognition functions. Fonix is also offering game developers two additional upgrades to the Microsoft XDK components: natural-sounding Text-To-Speech (TTS) technology, which enables game characters to read on-the-fly text in a variety of languages and dialects, and Fonix Professional Services to provide help with speech integration and support. These upgrades are available to game developers immediately.

Entry of voice commands into the Xbox video game system will take place via a microphone/headphone combo set such as the Xbox Communicator, which is unique among video game consoles in that it plugs right into a slot on the controller, and will be available as an optional peripheral for Xbox.

Fonix ASR and TTS technologies are used by a number of major manufacturers and technology providers around the world including Compaq, Mitsubishi, Motorola, Samsung, Seiko Epson, and Unisys. For a full explanation of Fonix and its voice interface technologies, visit www.fonix.com. For more information about Xbox, visit www.xbox.com.

About Xbox

Xbox (http://www.xbox.com/) is Microsoft's future-generation video game system that delivers the most powerful games experiences ever. Xbox empowers game artists by giving them the technology to fulfill their creative visions as never before, creating games that blur the lines between fantasy and reality. Xbox is now available in North America and Japan, and will ship in Europe and Australia on March 14, 2002.

About Fonix Corporation

Fonix Corporation (OTC Bulletin Board: FONX) is a leading provider of natural-user interface technology solutions for wireless and mobile devices, Internet and telephony systems, and vehicle telematics. Leading chip manufacturers, independent software and hardware vendors, and Internet content and service providers incorporate Fonix technology to provide their customers with an easier and more convenient user experience. Fonix products, including Text-To-Speech (TTS), Automatic Speech Recognition (ASR), and Handwriting Recognition (HWR), provide the most natural communication solutions available. For additional information, visit www.fonix.com, or contact a Fonix representative at (801) 553-6600.

Fonix Investor Contact: Michelle Aamodt, (801) 328-0161, invrel@fonix.com

Fonix is a registered trademark of Fonix Corporation. Xbox is a trademark of Microsoft Corporation in the United States and/or other countries. All other product or services names are the property of their respective owners.

Note: The statements released by Fonix Corporation 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. It is important to note that 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.

Contact:

     Press:
     S&S Public Relations, Inc.
     Steve Simon, 847/955-0700, x237
     steve@sspr.com
     or
     Fonix Corporation
     Whitney Seamons, 801/553-6600
     mediarel@fonix.com