For additional information, contact

Kathy Brailer, (301) 419-3900

August 25, 2004 Email: kbrailer@spherix.com

SPHERIX PROTESTS NATIONAL PARK SERVICE AWARD:

WINNING BID $32.6 MILLION HIGHER

FOR IMMEDIATE RELEASE:

BELTSVILLE, MD. Spherix Incorporated (NASDAQ/SPEX) announced today that it has filed an official protest of the U.S. Department of Agriculture’s (USDA) award of a contract for the operation of a consolidated National Recreation Reservation System to ReserveAmerica. The new system will provide reservation services for all Federal recreation facilities, including the National Park sites currently serviced by Spherix. In a debriefing recently held by the USDA, the agency was unable to provide Spherix with any convincing rationale for its decision to forego more than the $30 million in cost savings offered by Spherix’s proposal. This, combined with other serious flaws in their evaluation, has prompted Spherix to formally protest the award.

“The conduct of this whole procurement has been very disturbing from the outset,” stated Thomas W. Gantt, President. “Initially, USDA attempted to award a consolidated contract to ReserveAmerica without competition and we had to take them to court to block that unfair action. Then, while promising to hold a fair competition, the Secretary of Agriculture waived federal procurement law on a “national emergency” basis so they could add 12 National Parks to ReserveAmerica’s contract, giving them an obviously unfair advantage over other offerors. Now, USDA has announced an award which will require a substantial premium for performance of the work without identifying any legitimate basis for doing so. The whole premise behind combining government procurements is to save money—not to create more expense for the taxpayer.”

“We expect that by filing this protest, the proper Government authorities will take the necessary time to evaluate the fairness of this award and will find it flawed,” Gantt added. “The real losers here are the camping public that will pay the bill through higher user fees, and all of the wonderful National Parks who will not get to use Spherix’s real-time system. We have served them loyally for many years and their officials love working with us. They will not be served well if this procurement is allowed to stand, and we will not rest until this erroneous decision has been overturned.”

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Certain statements contained herein are “forward looking” statements as defined in the Private Securities Litigation Reform Act of 1995. Because such statements include risks and uncertainties, actual results may differ materially from those expressed or implied. Factors that could cause actual results to differ materially from those expressed or implied include, but are not limited to, those discussed in filings by the Company with the Securities and Exchange Commission, including the filing on Form 8-K made on March 3, 1999.

Under its motto, “A World of Solutions,” Spherix’s mission is to create value and increase shareholder wealth through innovations that benefit our clients and the human condition. Spherix offers innovations in information technology, knowledge management, and biotechnology.

Our Internet address is http://www.spherix.com.

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