Currently,
there are 12,800 Xinhua Bookstores and over 70,000 independent bookstores in
China.

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11, 2006. 17 or visit its website at http://www.
"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.; Macon, Ga.Y.

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Chapter One
program.

Fonix Anticipates Increased Sales in Speech and Telecom Business


Expected operating performance over the coming quarters may present
significant opportunities to further segregate operations, which could
eventually be supported by separate investment capital, management and
business units. During 2005, LecStar has plans for new co-locations in
Charleston, S., 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.


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Xinhua China also interfaces with
the worldwide financial communities to inform them of the combined companies'
goals and developments.com. The company 's
actual results could differ materially from those in such
forward-looking statements.

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Xianping Wang, president and CEO.cn.net marneth@tirc.C.

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.

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The ability to preview titles
will enable book retailers to manage their inventories and better serve their
customers while allowing publishers to gain additional exposure," said Mr. The
American excerpts have been provided by American Dial-A-Book, Inc.
"We believe that, as the Chapter One China system grows, it will yield
increased volume through our book distribution business.

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. 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. Additionally, the company has
plans to implement a facilities-based network platform and expand its
BPL trial with Duke Power in North Carolina.

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meaning lexicon


"The system offers benefits to all parties.
This was the first exposure book publishers and retailers had to Chapter One
China Excerpts and the response was very positive, according to the company.

At Xinhua China Ltd.
As a result of recently implemented programs to boost sales and
reduce operating costs in all three groups, Fonix expects to report
improved and positive results over the next three to four quarters.

Fonix Speech Update

The Fonix Speech Group has expanded its foothold in key market
sectors, namely in videogame consoles, handheld language learning
devices and mobile/wireless devices. and U.; Savannah, Ga.

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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.

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"Further, with English titles becoming increasingly available to the
retail book industry, Chapter One China Excerpts should stimulate interest in
US and English titles, which are currently being imported into the China
market to a greater extent than ever before., holds a national license for distribution of books and other
publications in China.

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7 to Jan. Today, over 120 million students
in China study English as curriculum courses , which are mandatory to qualify
for entry into undergraduate programs at all universities in China .
The Company said it is also launching a marketing initiative to develop
licensing and business partnerships with online e-commerce portals in China
who will be interested in licensing the database for them to participate in
the online book sales in China.

Videogame Consoles

Videogame developers worldwide can now build games that utilize a
common Fonix API across Xbox(R), PlayStation (R)2, PC and Mac
platforms."

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."

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. and The Fonix Speech
Group. The
company does not undertake any responsibility to update the
forward-looking statements contained in this release.

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All parties
benefit," Wang concluded. is a US publicly traded holding company that, through
one of its subsidiaries, Xinhua Publications Circulation + Distribution Co.

Safe Harbor Statement
This news release may include forward-looking statements within the
meaning of section 27a of the UNITED STATES SECURITIES ACT of 1933, as
amended, and section 21e of the UNITED STATES SECURITIES and EXCHANGE ACT of
1934, as amended, with respect to achieving corporate objectives, developing
additional project interests, Xinhua China's analysis of opportunities in the
acquisition and development of various project interests and certain other
matters.; and Memphis, Tenn.

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- First Online Book Preview System in China

- Includes Both Chinese and English Titles

- Over 7,000 Titles Already Available

- Expected to Stimulate Book Sales

BEIJING , Jan. It will also allow book buyers for the Chinese government-run
Xinhua Bookstores, independent bookstores, and online bookstores to select the
first chapters of books in the company's database by title, author, publisher,
and ISBN codes for preview prior to purchase, according to Xinhua China . English, French, German and Spanish. Fonix anticipates that the acquisition may close as
circumstances permit.

About Fonix

Fonix Corp. 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.

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Xinhua China
has completed testing of the software framework of the system and has already
entered over 7,000 thousand titles, in both Chinese and English, into the
database.
Over 300 publishers and several thousand members of the book retailers
industry attended the Beijing Book Fair over the 5-day event.

Language Learning Devices

The Fonix Language Learning solution uses Fonix DECtalk
text-to-speech (TTS ) technology to teach users correct pronunciation
of foreign words in U. The results of
our concerted sales efforts in these areas provide a solid base to
grow unit royalty revenue. "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.

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11 /Xinhua-PRNewswire/ -- Xinhua China Ltd. All those
students are potential buyers of English language books as English proficiency
becomes more widespread," Wang added.: At The Investor Relations Company:
Alex Helmel Woody Wallace or Michael Arneth
info@xinhua-china . Current mobile operators marketing
VoiceDial-compatible devices in Europe include O2 and Deutsche
Telekom's mobile communications division T-Mobile.
"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.; Columbus,
Ga. 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.

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, LecStar Telecom Inc.

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"The database should ultimately provide
book sellers and their customers with the ability to review a wider selection
of titles more conveniently than is now possible, which we believe will lead
to an increase in book sales in China.
The system allows book retailers and others in the Chinese market to
preview titles of books they are considering for their stores. Fonix
voice technology has currently been announced on eight videogame
titles produced by companies including Ubisoft, Novalogic, Knowledge
Adventure and Sierra Entertainment, and the company expects to be
included in more than 20 new game titles within the next 12 months. "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. As a facilities-based
provider, Fonix Telecom will also offer traditional telephony-based
services with additional co-location facilities in Atlanta.

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S. 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).

dictionary described



About Xinhua China
Xinhua China Ltd.xinhuachina.; Albany, Ga.

meaning vocabulary


The company said the new program is expected to stimulate book sales in China. Xinhua China will also be able to provide the
fulfillment requirements to support these online book retailers.,
Ltd.

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Xinhua China Introduces Innovative Online Book Preview Program

; and
Sandy, Utah.

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com
(604) 681-3864 * (800) 884 -3864 (847) 296-4200



The solution is currently featured in products manufactured by Casio
and TopGrade.C.
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 .

accomplishments vocabulary


(OTC Bulletin Board: XHUA) the majority shareholder of the leading book
distributor in China , today announced that it demonstrated its Chapter One
China(TM) book portal, which provides online access to the first chapter of
selected titles in the Chinese market to publishers, at the Beijing Book Fair."
Xinhua China conducted several demonstrations of the Chapter One China
system during the book fair, which was held from Jan. Xinhua China is involved in forming strategy,
operating and financing for Xinhua C + D. Alex Hemel at
1 800 884-3864 ext. These statements are made under the "safe harbor" provisions of the
United States private securities litigation reform act of 1995 and involve
risks and uncertainties, which could cause actual results to differ materially
from those in the forward-looking statements contained herein.; Augusta, Ga.

Sites selling Reference Books - Encyclopedias, dictionaries and related texts.

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Sales of its solution specifically designed for
speech -enabled electronic dictionaries have exceeded the company's
original forecasts.

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For more information , please call Mr.

Business Editors/High-Tech Writers

SALT LAKE CITY----Fonix Corp. (OTCBB:
FNIX), an integrated communications carrier providing
telecommunications services and value-added speech technologies, has
re-aligned its operations into three revenue-centric operating groups:
Fonix Speech, Fonix Telecom and LecStar Telecom. Fonix VoiceIn(R) is based on Fonix's proprietary automatic
speech recognition (ASR) technology and is optimized for videogame
development where memory and processing power are at a premium.K., a privately held company based
in Brooklyn, N. Investors are cautioned that
forward-looking statements involve risk and uncertainties that may
affect the company 's business prospects and performance.

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