Fonix+OTC+mal anders(der2te)

"Fonix's financial results for the first quarter reflect the merit of realigning our business operations," said Thomas A. Murdock, Fonix chairman and CEO. "We expect further improvement in revenue and cost management as we leverage the operating advantages of LecStar Telecom, Fonix Telecom and The Fonix Speech Group."

Fonix revenues were $4,223,000 for the quarter ended March 31, 2005, an increase of $2,298,000 compared to $1,925,000 for the same period in 2004. Operating expenses, exclusive of non-cash amortization of $1,586,000, decreased by $805,000 from $3,935,000 in the first quarter of 2004 to $3,130,000 in the first quarter of 2005. Net loss was $4,080,000 ($0.03 per common share) for the first quarter in 2005 compared to $2,342,000 ($0.08 per common share) for the same period in 2004. During the quarter ended March 31, 2005, the company reduced accrued payroll and other compensation-related expenses by $445,000. First-quarter results reflect a full quarter of operations for LecStar Telecom and a partial quarter for Fonix Telecom.

"We are encouraged by the results of the restructuring and redirection of our business," said Roger D. Dudley, Fonix executive VP and CFO. "We have reduced combined operating expenses, less non-cash amortization, by 20 percent, and we believe Fonix will continue to improve its operating margin and increase revenue as we implement aggressive sales and marketing plans, on both the telecom and speech sides of the business."

About Fonix

Fonix Corp., based in Salt Lake City, is an innovative communications and technology company that provides integrated telecommunications services and value-added speech technologies through Fonix Telecom Inc., LecStar Telecom Inc. and The Fonix Speech Group. The combination of interactive speech technology and integrated telecommunications services allows Fonix to provide customers with comprehensive cost-effective solutions to enhance and expand their communications needs.

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.

Fonix Corp.

               Consolidated Statement of Operations

                                               Three Months Ended
                                          Mar 31, 2005     Mar 31, 2004
                                          -------------    ------------

Revenues                                   $   4,223,000    $   1,925,000
Cost of revenues                             (2,187,000)       (792,000)
                                          -------------    ------------

    Gross profit                              2,036,000       1,133,000

Expenses:
  Selling, general and administrative         3,415,000       2,331,000
  Amortization of intangible assets           1,586,000         593,000
  Product development and research              520,000         799,000
                                          -------------    ------------

        Total expenses                        5,521,000       3,723,000

Total other income (expense)                   (595,000)        248,000

Net loss                                     (4,080,000)     (2,342,000)
Preferred stock dividends                      (297,000)     (2,986,000)
                                          -------------    ------------

Loss attributable to common stockholders     (4,377,000)     (5,328,000)

Basic and diluted net loss per common
share                                     $       (0.03)   $       (0.08)
                                          =============    ============


                     Consolidated Balance Sheets

                                              As of           As of
                                          Sep 30, 2004     Dec 31, 2004
                                          -------------    ------------

Assets                                     $ 17,557,000    $ 19,000,000
Liabilities                                $ 20,948,000    $ 21,058,000
Stockholders' deficit                      $ (3,391,000)   $ (2,058,000)


SOURCE: Fonix Corp.

The Investor Relations Group
Investors: John Nesbett or Gino De Jesus
Media: Andrea Faville
212-825-3210
mail@investorrelationsgroup.com
        or
Fonix Corp., Salt Lake City
Elizabeth Sweeten, 801-553-6600                
mediainfo@fonix.com

- Fonix Rede sieht das erste, das NovaLogic videogame überschreibt, um mit Fonix Stimmentechnologie auszuliefern. NovaLogic Inc. gibt die Xbox (R) und PlayStation (R) 2 Versionen von Deltagewalt (R) frei - schwärzt Falken hinunter (R), welchem Merkmal Fonix VoiceIn (R) für redeermöglicht befiehlt und kontrolliert in videogames.
"Fonixs finanzielle Ergebnisse für das erste Viertel reflektieren die Leistung, neu unsere Geschäftsoperationen auszurichten," sagte Thomas A. Murdock, Fonix Vorsitzenden und Vorstandsvorsitzenden. "wir erwarten weitere Verbesserung bezüglich Einnahme- und Kostenverwaltung, da wir die Betriebsvorteile von LecStar Telefongesellschaft, Fonix Telefongesellschaft und der Fonix Redegruppe fremdfinanzieren".
Fonix Einnahmen waren $ 4.223.000 für das Viertel, wo beendeten 31. März 2005 eine Zunahme von $ 2.298.000 sich mit $ 1.925.000 für dieselbe Periode in 2004 vergleichen ließ, . Verwaltungskosten, die der bargeldlosen Amortisation von $ 1.586.000 ausschließlich sind, nahmen um $ 805.000 von $ 3.935.000 in erstem Viertel von 2004 vor $ 3.130.000 im ersten Quartal von 2005 ab . Nettoverlust war $ 4.080.000 ($ 0,03 pro gemeinsamen Anteil) für das erste Viertel in mit $ 2.342.000 ($ 0,08 pro gemeinsamen Anteil) für FonixBogen 31, 2005, die Gesellschaft reduzierten erwachsene Gehaltsliste und andere ausgleichgebundene Spesen um $ 445.000 . ersten Viertelergebnisse reflektieren ein volles Viertel von Operationen für LecStar Telefongesellschaft und ein Teilviertel für Fonix Telefongesellschaft.
"wir werden von den Ergebnissen der Umstrukturierung und Neuausrichtung unseres Geschäfts ermutigt," sagte Roger D. Dudley, Fonix geschäftsführende VP und CFO. "wir haben gemeinsame Verwaltungskosten abzüglich bargeldloser Amortisation um 20 Prozent reduziert, und wir glauben, daß Fonix fortfährt, seine Betriebsrand- und Zunahmeneinnahmen zu verbessern, da wir aggressive Verkäufe und Marketingpläne auf sowohl der Telefongesellschaft als auch Redeseiten des Geschäfts durchführen".
Über Fonix
Fonix Corp., die auf Salzseestadt basierend ist, ist eine innovative Fernmeldewesen- und Technologiegesellschaft, die integrierte Telekommunikationsdienste und Mehrwertredetechnologien durch Fonix Telecom Inc., LecStar Telecom Inc. und die Fonix Redegruppe liefert. Die Kombination von interaktiver Redetechnologie und integrierten Telekommunikationsdiensten erlaubt Fonix, Kunden umfassende kostenwirksame Lösungen zu liefern, um ihren Fernmeldewesenbedarf zu verbessern und auszudehnen.
Von Fonix freigegebene Erklärungen, die nicht rein historisch sind, schauen vorwärts innerhalb der Bedeutung der "sicherer Hafen" Vorsorge von der privaten Sicherheitsrechtsstreitreformtat von 1995 einschließlich Erklärungen bezüglich den Erwartungen, Hoffnungen, Absichten und Strategien für die Zukunft der Gesellschaft. Vor Anlegern ist gewarnt daß vorausblickende Erklärungen Risiko und Ungewißheiten einschließen, die die Geschäftsaussichten und Leistung der Gesellschaft beeinflussen können. Die tatsächlichen Ergebnisse der Gesellschaft konnten sich materiell von jenen in solchen vorausblickenden Erklärungen unterscheiden. Risikofaktoren schließen allgemeine ökonomische, konkurrenzfähige, staatliche und technologische Faktoren ein, wie mit der sek in den Spänen der Gesellschaft auf Formen 10 K, 10-Q und 8 K erörtert. Die Gesellschaft übernimmt keine Verantwortung, die in dieser Freigabe enthaltenen vorausblickenden Erklärungen zu aktualisieren.
Fonix Corp.

               Fundierte Erklärung von Operationen

                                               Drei Monate endeten
                                          Am 31. März verderben 2005 31, 2004
                                          -------------    ------------

Einnahmen $ 4.223.000$ 1.925.000
Kosten von Einnahmen (2.187.000) (792.000)
                                          -------------    ------------

    Verdienen Sie Gewinn 2.036.000 1.133.000 brutto

Spesen:

  Verkauf, General und administrativ 3.415.000 2.331.000
  Amortisation von immateriellen Vermögenswerten 1.586.000 593.000
  Produktentwicklung und Forschung 520.000 799.000
                                          -------------    ------------

        Zählen Sie Spesen 5.521.000 3.723.000 zusammen

Zählen Sie anderes Einkommen (Kosten) (595.000) 248.000 zusammen

Verdienen Sie Verlust (4.080.000) (2.342.000) netto
Vorzugsaktiendividenden (297.000) (2.986.000)
                                          -------------    ------------

Verlust, der gemeinsamen Aktionären (4.377.000) (5.328.000) zuschreibbar ist

Grund- und verdünnter Nettoverlust pro Gemeinsamkeit
teilen Sie $ (0,03) $ (0,08)
                                          =============    ============


                     Fundierte Bilanzen

                                              As von As von
                                          Sept 30, 2004, 31. Dez 2004
                                          -------------    ------------

Vermögenswerte $ 17.557.000$ 19.000.000
Verbindlichkeiten $ 20.948.000$ 21.058.000
Das Defizit$ (3.391.000) $ der Aktionäre (2.058.000)

Quelle: Fonix Corp.
Die Anlegerbeziehungen gruppieren
Anleger: John Nesbett oder Gino DE Jesus
Medien: Andrea Faville
212-825-3210
mail@investorrelationsgroup.com
        oder
Fonix Corp., Salzseestadt
Elizabeth werden süß, 801-553-6600                
mediainfo@fonix.com

As of March 31, 2005, our cash resources were limited to collections from customers, draws on the Sixth Equity Line, proceeds from the issuance of preferred stock and loan proceeds, and were only sufficient to cover current operating expenses and payments of current liabilities.  We have entered into certain term payment plans with current and former employees and vendors.  As a result of cash flow deficiencies, payments to former employees and vendors not on a payment  plan have been delayed.  At March 31, 2005, we had accrued liabilities of $6,877,000, accrued wages and other compensation payable to current and former employees amounted to approximately $1,311,000 and vendor accounts payable amounted to approximately $5,383,000.  We have not been declared in default under the terms of any material agreements.

Several former employees filed suits against Fonix to collect past due wages or filed complaints with the State of Utah Labor Commission asserting past due wage claims.

For the three months ended March 31, 2005, we received $2,050,000 in funds and a subscription receivable of $6,000 drawn under the Sixth Equity Line, less commissions and fees of $59,000 and issued 28,320,751 shares of Class A common stock to the Equity Line Investor.  Subsequent to March 31, 2005 and through May 10, 2005, the Company received $693,000 in funds drawn under the Sixth Equity Line and issued 26,182,267 additional shares of Class A common stock to the Equity Line Investor.
During the three months ended March 31, 2005, we granted options to employees to purchase 708,100 shares of Class A common stock.

Ist der Ruf erst ruiniert lebt sichs völlig ungeniert...man gibt einfach neue Aktien und Optionen und Schuldverschreibungen aus ,unglaublich wie viele Seiten alleine durch die Aufzählung gefüllt werden
und wer mir nicht glaubt kann ja selber prüfen: www.pinksheets.com/quote/filings.jsp?symbol=FNIX

der Preissieg der * Fonix Rede Fonix VoiceDial (TM) Lösung, welchem
erlaubt Hände-befreien Zugang zu mobilen Telefonkontakten, sind verbessert in
einschließen italienische Spracherkennung.
* Fonix Rede sieht das erste, das NovaLogic videogame überschreibt, um mit
Fonix Stimmentechnologie auszuliefern. NovaLogic Inc. gibt die Xbox und
PlayStation 2 Versionen der Deltagewalt frei - schwärzt Falken hinunter, welchem Merkmal
Fonix VoiceIn für redeermöglicht befehlen und kontrollieren in videogames.
"Fonixs finanzielle Ergebnisse für das erste Viertel reflektieren die Leistung von
, die neu unsere Geschäftsoperationen ausrichtet," sagte Thomas A. Murdock, Fonix
Vorsitzenden und Vorstandsvorsitzenden. "wir erwarten weitere Verbesserung bezüglich Einnahmen und kosten
Leitung, da wir die Betriebsvorteile von LecStar Telefongesellschaft,
Fonix Telefongesellschaft und der Fonix Redegruppe fremdfinanzieren".
Fonix Einnahmen waren $ 4.223.000 für das Viertel, wo beendeten 31. März 2005 eine
Zunahme von $ 2.298.000 sich mit $ 1.925.000 für dieselbe Periode in
2004 vergleichen ließ, . Verwaltungskosten, die der bargeldlosen Amortisation von
$ 1.586.000 ausschließlich sind, nahmen um $ 805.000 von $ 3.935.000 im ersten Viertel
von 2004 zu $ 3.130.000 im ersten Quartal von 2005 ab . Nettoverlust war
$ 4.080.000 ($ 0,03 pro gemeinsamen Anteil) für das erste Viertel, wo in 2005
sich mit $ 2.342.000 ($ 0,08 proFonixBogen 31, 2005, die Gesellschaft reduzierten
erstes Viertel, Ergebnisse ein volles Viertel von Operationen für LecStar
Telefongesellschaft und ein Teilviertel für Fonix Telefongesellschaft reflektieren,
erwachsene Gehaltsliste und andere ausgleichgebundene Spesen um $ 445.000,.
"wir werden von den Ergebnissen der Umstrukturierung ermutigt und richten
von unserem Geschäft neu aus," sagte Roger D. Dudley, Fonix geschäftsführende VP und CFO. "wir
haben gemeinsame Verwaltungskosten, weniger bargeldlosen Amortisation,
um 20 Prozent reduziert und wir glauben, daß Fonix fortfährt, seinen
Betriebsrand zu verbessern, und Zunahmeneinnahmen, da wir aggressive Verkaufs
und Marketing durchführen, planen auf sowohl der Telefongesellschaft als auch Redeseiten des
Geschäfts".

The Fonix Language Learning solution uses Fonix DECtalk text-to-speech (TTS) technology to teach users correct pronunciation of foreign words in U.S. and U.K. English, French, German and Spanish. The solution is currently featured in products manufactured by Casio and TopGrade. Sales of its solution specifically designed for speech-enabled electronic dictionaries have exceeded the company's original forecasts.

Mobile/Wireless

Fonix VoiceDial is the award-winning speech interface solution for mobile/wireless devices, giving users a hands-free interface to device functions and phone contacts. Current mobile operators marketing VoiceDial-compatible devices in Europe include O2 and Deutsche Telekom's mobile communications division T-Mobile. New to the phone market are the T-Mobile MDA III, the O2 XDA II PocketPC devices and the i-mate PDA2k, all featuring Fonix VoiceDial in multiple languages, including English, German, French and Spanish. Fonix's unit royalty revenue from these devices has increased 1,829 percent from Q3 2004 to Q1 2005.

"We are extremely pleased with the initial sales reports and feedback we are receiving regarding Fonix speech solutions," said Walt Nawrocki, senior VP and GM, Fonix Speech. "Fonix anticipates expanding its leading market position with a text-to-speech solution in the electronic dictionary market as well as with speech recognition solutions in the videogame and mobile/wireless markets. The results of our concerted sales efforts in these areas provide a solid base to grow unit royalty revenue."

Fonix Telecom Update

Fonix Telecom has been aggressively marketing next-generation products and services with the goal of providing improved services to an expanding customer base. Fonix Telecom provides data and local/long distance Internet telephone services through Voice over Internet Protocol (VoIP) and Broadband Over Power Lines (BPL). Fonix Telecom has increased its service capabilities by offering VoIP and expanded business digital subscriber line (DSL). Additionally, the company has plans to implement a facilities-based network platform and expand its BPL trial with Duke Power in North Carolina. As a facilities-based provider, Fonix Telecom will also offer traditional telephony-based services with additional co-location facilities in Atlanta.

"Growing our footprint and service offerings is crucial to our strategy to offer business and residential customers improved alternatives in communications services," said Dale Smith, senior VP and GM, Fonix Telecom. "Fonix Telecom's recent efforts ensure our continued ability to succeed in a competitive market as well as to meet the evolving needs of customers with new technology and superior service."

LecStar Telecom Update

LecStar Telecom, a traditional local/long distance service provider, has greatly expanded its business customers reach with new POP (point-of-presence) facilities in Charlotte, N.C.; Macon, Ga.; and Sandy, Utah. During 2005, LecStar has plans for new co-locations in Charleston, S.C.; Augusta, Ga.; Savannah, Ga.; Albany, Ga.; Columbus, Ga.; and Memphis, Tenn. LecStar will continue to offer traditional telephony-based services on multiple platforms, including its own facilities, which will reduce operating expenses and improve quality of service to its customers.

Fonix is in the process of obtaining regulatory approvals with respect to the previously announced acquisition of the capital stock of Empire One Telecommunications Inc., a privately held company based in Brooklyn, N.Y. Fonix anticipates that the acquisition may close as circumstances permit.

About Fonix

Fonix Corp., based in Salt Lake City, is an innovative communications and technology company that provides integrated telecommunications services and value-added speech technologies through Fonix Telecom Inc., LecStar Telecom Inc. and The Fonix Speech Group. The combination of interactive speech technology and integrated telecommunications services allows Fonix to provide customers with comprehensive cost-effective solutions to enhance and expand their communications needs.

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.



--------------------------------------------------
Contact:
    The Investor Relations Group
    Investor: John Nesbett or Gino De Jesus
    Media: Andrea Faville
    212-825-3210
    mail@investorrelationsgroup.com
            or
    Fonix Corp., Salt Lake City
    Elizabeth Sweeten, 801-553-6600
    mediainfo@fonix.com