Fonix revenues were $3,182,000 for the quarter ended March 31, 2006, a decrease of $1,041,000 compared to $4,223,000 for the same period in 2005; the change was primarily due to a decrease in telecom revenues. Operating expenses, exclusive of non-cash amortization, decreased by $222,000, from $3,935,000 to $3,713,000 for the same period in 2005. Net loss was $4,081,000 ($0.01 per common share) for the first quarter in 2006 compared to $4,080,000 ($0.03 per common share) for the same period in 2005.