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Fonix Telecom to Launch VoIP Via Facilities-Based Soft Switch

11 June 2005

Fonix Telecom Inc., a wholly owned subsidiary of Fonix Corp. (OTCBB: FNIX) offering next-generation integrated communications services to residential and business customers, is on track to migrate to a facilities-based network platform with the installation of a Voice over Internet Protocol (VoIP) soft switch -- the Lucent Compact Switch. The switch will be the key network gateway component for its new Internet Protocol (IP)-based architecture, which is expected to be commercially available by Aug. 1, 2005.

Fonix Telecom's migration to a facilities-based network platform and implementation of a VoIP soft switch enables the company to simultaneously support legacy "Plain Old Telephone Service" (POTS) subscribers and new VoIP customers. This network platform will position Fonix to migrate from the dependency upon the ILEC's (incumbent local exchange carrier) unbundled network elements-platform (UNE-P) and reseller business model. As a facilities-based CLEC, Fonix Telecom will decrease costs and increase revenue, while at the same time providing the capability to maintain end-to-end control of customer services and improve time-to-market for next-generation products like VoIP. Additionally, Fonix Telecom will simplify network operations and ensure substantial growth potential for future IP-based services.

"Faced with changes in UNE-P regulation, Fonix Telecom's transition into a facilities-based infrastructure positions us to leverage VoIP technology and our existing product portfolio by offering more advanced features and capabilities to our customers without sacrificing high-quality customer service," said W. Dale Smith, senior VP and GM, Fonix Telecom. "As revenue opportunities expand with our new network facilities, the platform will greatly reduce our costs to deliver advanced telecommunication services."

Key customer benefits of Fonix Telecom's VoIP services include dynamic selection and management of calling capabilities, feature selections and service characteristics, along with the ability to add or change a service profile in real time through a simple, easy-to-use Web interface. Fonix Telecom's VoIP architecture will provide customers ultimate control of their services with more feature choices and pricing alternatives starting from $19.95.

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 and 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. Visit www.fonix.com for more information or call 888-895-5539.

About Fonix

Based in Salt Lake City, 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."

Source: Business Wire


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