Fonix+OTC+mal anders(der2te)

* Position itself for substantial growth potential for future IP-based
services.




"Offering cost-effective IP-based communications services is a core
part of our strategy to better serve our existing customers and attract
new ones while creating a revenue stream that is fully independent of
the major carriers," said Dale Smith, VP and GM of Fonix Telecom. "We
selected the Lucent Compact Switch because it offers the scalability
and level of functionality we need to enhance our current services and
ramp-up to bring new customers and services online." "In order to stay
competitive in today's telecommunications environment, independent
carriers must acquire flexible platforms that can be the foundation for
an IMS (IP Multimedia Subsystem) Network and the kinds of blended
lifestyle services that consumers demand," said Gerry Cafaro, vice
president of sales for Lucent Technologies. "We are pleased to be able
to work with providers such as Fonix Telecom that are implementing our
best-in-class technology to evolve their business and product
offerings." The Lucent VoIP solution for Fonix Telecom will include the
Lucent Compact Switch in addition to the Lucent Feature Server 3000 and
Acme Packet Net-Net session border controllers.




The Lucent Compact Switch can support from as few as 1,000 subscribers
to more than 100,000 subscribers on a single integrated platform.
Service providers can deploy the switch for end-office (Class 5) and
tandem (Class 4) applications to replace an existing switch or as an
addition to the network.




In addition to providing VoIP, Internet off-load and gateway mobile
switching center features, the compact switch also offers CALEA and
E911 capabilities.




In addition, Lucent recently introduced a new high-performance DS1
blade for the Lucent Compact Switch (and the Lucent Network Gateway)
that can make the system even more efficient and economical at the
lower port densities, ideal for independent telephone companies and
smaller rural end offices.




The Lucent Compact Switch recently gained "RUS Acceptance" status from
the Rural Utilities Service branch of the Rural Development Mission of
the United States Department of Agriculture.




About Fonix Telecom




Fonix Telecom, Inc. provides a full array of wireline voice, data,
long-distance and Internet telephone services utilizing traditional
lines as well as next-generation networks such as Voice Over Internet
Protocol, Broadband Over Power Lines.




Services are provided through LecStar Telecom. Fonix Telecom and
LecStar Telecom are wholly owned subsidiaries of Fonix Corp. and are
based in Atlanta, Georgia. Visit www.fonix.com for more
information, or call (888) 895-5539.




About Fonix




Based in Salt Lake City, UT, Fonix Corp. 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. 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. Visit www.fonix.com for more information, or call 801
553-6600 and say "Sales." About Lucent Technologies Lucent Technologies
designs and delivers the systems, services and software that drive
next-generation communications networks. Backed by Bell Labs research
and development, Lucent uses its strengths in mobility, optical,
software, data and voice networking technologies, as well as services,
to create new revenue-generating opportunities for its customers, while
enabling them to quickly deploy and better manage their networks.
Lucent's customer base includes communications service providers,
governments and enterprises worldwide. For more information on Lucent
Technologies, which has headquarters in Murray Hill, N.J., USA, visit
www.lucent.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.




CONTACT: Denise Panyik-Dale, Lucent Technologies At SUPERCOMM, Booth
No.64056
Tel: +1 410 290 5572
e-mail: dpanyikdale@lucent.com
Mike Alva, Lucent Technologies At SUPERCOMM, Booth No. 64056
Tel: +1 510 449 1902
e-mail: malva@lucent.com
Elizabeth Sweeten, Fonix
Tel: +1 801 553 6600
e-mail: mediainfo@fonix.com




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