ANNAPOLIS, Md., Feb. 12 /PRNewswire-FirstCall/ -- SONEX RESEARCH, INC. (OTC:SONX), a leader in the field of combustion technology, announced today that it recently received a letter from the SEC stating that because Sonex is delinquent in its annual and quarterly reporting requirements, the Company may be subject, without further notice, to an administrative proceeding to revoke its registration if all required reports were not filed within 15 days of the date of the letter. Sonex is unable to file all required reports within the prescribed time period. The Company has determined that the most prudent course of action is to submit an Offer of Settlement (the "Offer") to the SEC in anticipation of the proceedings that may be instituted against it. Sonex has been in contact with the SEC (through counsel) and intends to submit the Offer to the SEC within the next few days. Shortly thereafter, Sonex expects to enter into a Consent Order with the SEC which is expected to state that the Company has failed to comply with Section 13(a) of the Securities Exchange Act of 1934 (the "Exchange Act") and to order that pursuant to Section 12(j) of the Exchange Act, registration of the Common Stock of Sonex be revoked. Additionally, upon the final order signed by the SEC, Sonex's common stock will no longer be allowed to trade over the counter (the stock is currently quoted on the Pink Sheets Electronic Quotation Service), which may adversely affect the value and liquidity of the stock. In making the decision to enter into the Offer, management considered a number of factors and obtained advice of legal counsel. Management believes that had Sonex failed to respond to the notice from the SEC rather than proposing to submit an Offer of Settlement, the SEC's Division of Enforcement likely would have issued an Order Instituting Proceedings before an Administrative Law Judge, resulting in a default revocation of registration. Sonex has not filed an annual or quarterly report since that filed for the quarter ending September 30, 2004. Sonex became delinquent in its filings with the SEC primarily because of the lack of the financial resources to engage an independent registered public accounting firm to conduct audits of the financial statements for the annual reports, and the lack of staffing to prepare the periodic reports, due in large part to the amount of time management has devoted and the amount of funds Sonex has spent in responding to litigation. Sonex has continued to file with the SEC, however, Current Reports on Form 8-K to disclose all material events. Dr. Andrew A. Pouring, Sonex Chairman of the Board, CEO and President, said, "The consent to revocation of SEC registration is not expected to have any immediate adverse effect on the operations of the Company. We look forward to building on increased commercial interest in the Sonex Combustion System (SCS) for heavy fuel engines (HFEs)." In November 2006 Sonex licensed a part of the SCS HFE(TM) technology to Insitu, Inc. (Bingen, WA, http://www.insitu.com/), a pioneer developer of long-range, unmanned, autonomous aircraft, best known for its long endurance, low cost unmanned aerial systems (UAS) such as the ScanEagle(R) UAS, developed in partnership with Boeing. ScanEagle is used to provide services for the US Marine Corps, US Navy, and Australian Army, and has logged more than 30,000 hours of flight time since being deployed in 2004. In January 2007 Insitu announced that it set an endurance flight mark for its ScanEagle by running its engine modified with licensed HFE technology from Sonex, along with other enhancements developed by Insitu engineers, on JP-5 heavy fuel. Sonex continues to provide services to Insitu for further development of licensed SCS HFE(TM) technology under a Collaboration Agreement also signed in November 2006. Dr. Pouring added that as word spreads of the Insitu license and successful HFE flight, Sonex is fielding numerous inquiries for its HFE conversion process. "Sonex expects to generate new funded projects for the continued development and commercial application of the SCS HFE(TM) technology. Our challenge will be to expand the Company's capabilities, which may require additional funding. We are assessing the future needs of the Company and will work to develop an appropriate strategy for moving forward, including how best to maximize shareholder value. Sonex seeks to attract qualified, capable assistance to pursue commercialization not only of the SCS HFE(TM) technology but also of its piston-based technology for larger engines." "Management will continue to work hard towards the best result for our shareholders," said Dr. Pouring. "I believe the commercial potential of the SCS technology will permit shareholders to realize significant value from their holdings, whether through a strategic corporate transaction of some form or through future public trading of our stock." ScanEagle(R) is a registered trademark of the Boeing Company. Contact: George E. Ponticas, CFO, Sonex Research, Inc., tel: 410-266-5556, email: , website: http://www.sonexresearch.com/. About Sonex Sonex Research, Inc., a leader in the field of combustion technology, is developing its patented Sonex Combustion System (SCS) piston-based technology for in-cylinder control of ignition and combustion, designed to increase fuel mileage and reduce emissions of internal combustion engines. Sonex plans to complete development, commercialize and market its Sonex Controlled Auto Ignition (SCAI) combustion process to the automotive industry to improve fuel efficiency of gasoline powered vehicles. Additionally, independent third- party testing has confirmed the potential of the SCS application for direct- injected diesel engines to significantly reduce harmful soot in-cylinder without increasing fuel consumption. Other SCS designs are being used to convert gasoline engines of various sizes to operate on safer, diesel-type "heavy fuels" for use in military and commercial applications requiring light weight and safe handling and storage of fuel, such as in UAVs (unmanned aerial vehicles). CAUTION REGARDING FORWARD-LOOKING STATEMENTS "Forward-looking" statements contained in this report, as well as all publicly disseminated material about the Company, are made pursuant to the "safe harbor" provisions of the Private Securities Litigation Act. Such statements are based on current expectations, estimates, projections and assumptions by management with respect to matters such as commercial acceptance of the SCS technology, the impact of competition, and the Company's financial condition or results of operations. Readers are cautioned that such statements are not guarantees of future performance and involve risks and uncertainties that could cause actual results to differ materially from those expressed in any such forward-looking statements. DATASOURCE: Sonex Research, Inc. CONTACT: George E. Ponticas, CFO, Sonex Research, Inc., +1-410-266-5556, or Web site: http://www.sonexresearch.com/ http://www.insitu.com/

Copyright