ATLANTA--(BUSINESS WIRE)--Jan. 13, 2005--Fonix(R) Corp. (OTC BB: FNIX), an integrated communications carrier providing telecommunications services and value-added speech technologies, announces the official formation of Fonix Telecom Inc., a wholly owned subsidiary offering next-generation integrated communications services.

Fonix Corp. acquired LecStar Telecom Inc. in February 2004. LecStar has been operating as a company subsidiary, and will now change its name to Fonix Telecom Inc. Fonix Telecom will continue to offer the same telecommunications products and services as LecStar to residential and business customers, including wireline and Voice over Internet Protocol (VoIP), as well as next-generation technologies such as Broadband Over Power Lines (BPL). Internet customers should continue to use www.lecstar.com for the near term.

``As a growing public company focused on expanding our customer base organically and through acquisition, it made sense to add the Fonix Telecom brand to the public entity,`` said Thomas A. Murdock, Fonix CEO.

About Fonix Telecom Inc.

Fonix Telecom Inc., a wholly owned subsidiary of Fonix Corp., 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 and fixed wireless technology. Fonix Telecom Inc., previously known as LecStar Telecom Inc., is based in Atlanta.

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.``

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.