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NEXIQ Technologies and Fonix Corporation Enable Telematics Applications

     - Combined Technology Leads Marketplace in Solutions for Automotive
                                Environments -

    SALT LAKE CITY, MANCHESTER, N.H., STERLING HEIGHTS, Mich. and CORALVILLE,
Iowa, Aug. 27 Fonix(R) Corporation (OTC Bulletin Board: FONX),
a leading provider of natural-user interface solutions for wireless and mobile
devices, Internet and telephony systems, and vehicle telematics, and NEXIQ
Technologies, Inc. (OTC Bulletin Board: NEXQ) today announced that they are
collaborating on a joint telematics solution.  NEXIQ's telematics software
team based in Coralville, Iowa (formerly Diversified Software Industries,
Inc.) will lead the joint effort with Fonix.  Fonix and NEXIQ are teaming up
to accelerate the development of telematics solutions with voice recognition
and text-to-speech capabilities for automotive markets.  The integrated
vehicle telematics platform will be sold and marketed to auto manufacturers
and tier one suppliers.

    Fonix technologies and products, such as Text-To-Speech (TTS) and
Automatic Speech Recognition (ASR), will be integrated into NEXIQ's In-Vehicle
Information System (IVIS).  IVIS is a software framework that enables vehicle
manufacturers to integrate, test and maintain on-board information and display
systems.  It has the ability to manage how information is viewed in the
vehicle.  It also uses information from various vehicle components, as well as
from voice, text and navigation applications to accurately deliver real-time
critical information to the vehicle operator.

    "Fonix provides the marketplace, specifically the automotive telematics
arena, with high-quality technology and cost-effective speech-enabled
solutions," said NEXIQ Chairman and CEO John Allard.  "The demand for speech
solutions as part of telematics is growing rapidly, and we're confident that
NEXIQ and Fonix will be able to work together to provide this arena with the
applications and interfaces that they need to satisfy customers across the
board."

    "NEXIQ has continuously provided its customers with an easily-integrated
software framework for the development and deployment of vehicle telematics
solutions.  It's also interesting to note that UBS Warburg (2001) projects a
$41 billion worldwide telematics market by 2010, with $9.3 billion in the U.S.
annually by 2005 and $13 billion by 2010," said Kurt W. Flygare, Fonix Vice
President of Sales.  "We expect Fonix voice solutions, including our
natural-sounding TTS and our highly accurate ASR, which integrates seamlessly
with NEXIQ's IVIS framework, will provide auto manufacturers and suppliers
with the tools that they need to meet today's consumer demands."

    Fonix speech solutions offer hands-free control of in-dash devices and
systems, and interaction with the vehicle.  Fonix ASR does not require the
user to train his or her voice to the system and provides a high level of
recognition accuracy.  Fonix TTS converts requested data to a voice that can
be understood by the driver.  Additionally, Fonix TTS offers consistent API
sets, markup language support, and functionality across multiple platforms.