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New Software Generates Phonetic Data and Timing to Create “Human-Like” Lip and Facial Movements

LINDON, Utah — (BUSINESS WIRE) — October 26, 2009 — Fonix Speech, Inc., a wholly owned subsidiary of Fonix Corporation (OTC BB: FNXC) specializing in embedded speech interfaces for mobile devices, handheld electronic products, video game systems and processors, today announced today its VoiceSync 1.0 software. Animators across all spectrums of the gaming and entertainment industries are embracing cutting-edge speech recognition technology to link up phonetic information with physical representations of speech. Fonix’s new VoiceSync™ 1.0 represents a significant leap forward in the development of speech recognition technology by accurately interpreting phonetic data and timing that information to create “human-like” lip and facial movements.

Fonix VoiceSync 1.0 recognizes phonemes in live or recorded speech and aligns them with their location in the speech audio using a phonetic engine. The technology then interprets text of the utterance to provide the most accurate phonemes and their locations or generates phonetic estimates of free-form speech, depending on the mode of operation. The corresponding phonetic data is used by developers of animation products to more closely match lip, tongue, and facial animations to natural human movements.

Fonix VoiceSync is already being used by large technology companies like Autodesk, Epic and OC3 and was recently licensed to Microsoft for “South Park Let’s Go Tower Defense Play!” video game on Xbox LIVE Arcade. The ability to franchise the software offers limitless potential to any company with a direct application for it.

While Fonix VoiceSync provides more accurate speech recognition capabilities than any technology on the market, another one of the product’s differentiators is its small memory footprint and computing requirements (starting at 20 MIPS).

“The need for more accurate speech recognition technology in the gaming industry is growing with the birth of more efficient complementary development technologies,” said D. Lynn Shepherd, Senior VP Engineering and Product Development. “Fonix VoiceSync 1.0 represents a new plateau in accurate speech recognition. Beyond gaming, the technology has direct applications in animating avatars for online chat or creating animation features, movies, TV shows and more.”

Fonix VoiceSync 1.0 is noise-tolerant and insensitive to environment acoustics for a pure data translation. Utilizing only small computing and memory requirements, the program operates very close to real-time (70-100 ms delay) and has no vocabulary limitations. The software supports languages including US/UK English, Canadian/European French, German, Italian, Japanese, Korean, and Castilian/Latin American Spanish.

Supported platforms include Windows 32/64, Linux 32/64, Microsoft Xbox 360, Sony Playstation 3, and Nintendo Wii.

Fonix provides a developer support program that includes SDK training and application development. For more information on Fonix technology, please visit www.fonix.com.

About Fonix:

Fonix Corporation (OTC BB: FNXC), based in Salt Lake City, Utah, currently operates through its wholly owned subsidiaries, Fonix Speech, Inc., and Shanghai Gaozhi Software Systems Limited. Fonix Speech is an innovative speech recognition and text-to-speech technology company providing voice solutions for mobile/wireless devices, interactive video games, toys and appliances, computer telephony systems, the assistive market, and automotive telematics. Fonix Speech also provides developers and manufacturers with cost-effective speech solutions to enhance devices and systems.

Shanghai Gaozhi Software Systems Limited (“GaozhiSoft”), based in Shanghai, China, is a leading provider of OSS (Operation Support System) and related software solutions to Chinese mobile network service providers. Founded in 2003, GaozhiSoft software is integrated and widely used in 2G and fixed line networks. In 2008, GaozhiSoft expanded its strategy to include operations as a value-added service provider in the 3G mobile network in China and throughout the Asia Pacific region.

To learn more about Fonix Corporation, visit www.fonix.com; additional information about Fonix Speech can be found at www.fonixspeech.com or by calling (801) 553-6600 and saying “Sales.” Go to www.gaozhisoft.com for more information about G-Soft.

Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. "Forward-looking statements" describe future expectations, plans, results, or strategies and are generally preceded by words such as "may," "future," "plan" or "planned," "will" or "should," "expected," "anticipates," "draft," "eventually," or "projected." Additionally, statements relating to the Company’s market position or strength, implementation of the Company’s plans or strategies, and comparisons with other companies in the same or similar industries could contain forward-looking statements. You are cautioned that such statements are subject to a multitude of risks and uncertainties that could cause future circumstances, events, or results to differ materially from those projected in the forward-looking statements, including the risks that actual results may differ materially from those projected in the forward-looking statements as a result of various factors. Fonix Corporation expressly disclaims any obligation or intention to update or revise any forward-looking statement, as a result of developments occurring after the date such statement was first made.

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