content: SECURITIES AND EXCHANGE COMMISSION
                            Washington, D.C. 20549
  
  
                                   FORM 8-K
  
  
                                CURRENT REPORT
                Pursuant to Section 13 or 15(d) of the Securities
                             Exchange Act of 1934
  
  
        Date of Report (Date of earliest event reported): October 10, 2002
  
  
                              SONEX RESEARCH, INC.
                (Exact name of registrant as specified in Charter)
  
  
           Maryland                  0-14465                52-1188993
        (State or other           (Commision file         (IRS employer
        jurisdiction of               number)           identification no.)
         incorporation)
  
  
  
                      23 Hudson Street, Annapolis, MD 21401
                     (Address of principal executive offices)
  
  
                                (410) 266-5556
               (Registrant's telephone number, including area code)
  
  
                                      N/A
           (Former name or former address, if changed since last report)
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  ITEM 5. - OTHER EVENTS
  
  On October 10, 2002, Sonex Research,  Inc. (the "Company")  posted the following
  announcement on its website (www.sonexresearch.com):
  
  
                   SONEX HOLDS ANNUAL SHAREHOLDER MEETING,
                PROVIDES DETAILS ON RECENT MILITARY CONTRACTS
  
  
  ANNAPOLIS,  MARYLAND,  October 10, 2002 - SONEX  RESEARCH,  INC.  (OTC BB: SONX)
  yesterday held its Annual Meeting of Shareholders  to re-elect  directors and to
  report on the latest  developments  and  changes  taking  place at the  Company.
  Management  provided  additional  information  about recent  military  contracts
  awarded,  including  the  $744,246  contract  awarded  to Sonex  by the  Defense
  Advanced  Research  Projects Agency (DARPA) which was announced last week by the
  Company.  Sonex also  addressed  the  potential  implications  to the Company of
  enactment  of the  proposed  Energy  Policy  Act of 2002  being  debated  now by
  Congress.  Finally,  a member of the Company's Board also assured attendees that
  recent sales of Sonex stock by the affiliated investment entities which together
  are  the  Company's  largest  shareholder  were  routine  sales  made  to  cover
  administrative  expenses and  represented  an  insignificant  percentage  of the
  shares held. Approximately 50 people attended the meeting at the Hampton Inn and
  Suites Annapolis.
  
  
  BUSINESS CHANGES:
  
  George E. Ponticas,  Sonex CFO and Secretary,  spoke of the  difficulties of the
  past year that were overcome by the Company while  suggesting that there is much
  more to do now that recent  contracts have been received to provide a foundation
  on  which to  build.  He noted  that at the end of 2001,  financial  constraints
  resulted  in a  reduction  in staffing  with total  employment  falling to three
  full-time  personnel,  including  officers,  and the  part-time  services of Mr.
  Michael I.  Keller,  the  individual  who serves as the  Company's  Director  of
  Business Development and Government Programs.
  
  Mr. Ponticas said that past year's severe reduction of cash expenditures and the
  personal  hardships  endured by the remaining  Company  personnel,  coupled with
  timely  financial  support  from  shareholders,  helped the Company  continue in
  operation.  He added that as a result of the recent  contracts and the prospects
  for a third  government  contract,  Sonex finds  itself with  numerous  business
  opportunities  and has hired  additional  technical  staffing to support the new
  projects.  Mr.  Ponticas  gave  special  thanks  to a  number  of  shareholders,
  mentioning  them by name, who have been lending their time and energy to support
  management's efforts.
  
  He also noted that in  anticipation  of the changes to take place,  in May Sonex
  retained The  Scottsdale  Group (TSG) as its investor  relations  and  financial
  communications consultant. Mr. Ponticas stated that TSG will be helping to raise
  the Company's public profile in the automotive and defense industries as well as
  the  investment  community.  Ms. Susan Ladue,  a principal in TSG,  later gave a
  brief presentation to the shareholder meeting concerning upcoming initiatives.
  
  Mr.  Ponticas also told those in attendance  that Sonex is seeking to supplement
  its management  capabilities  and position itself to consider  viable  strategic
  opportunities.  To help with  those  efforts,  he  announced  that last week the
  Company engaged the services of Mr. John H. Elstner,  a local consultant who has
  experience  in  building  companies  and  obtaining  capital.  In  response to a
  shareholder  questions regarding the need for additional  capital,  Mr. Ponticas
  responded that with assistance  from Mr. Elstner,  the Company would seek a line
  of credit  secured by the billings  from the DARPA  contract  and explore  other
  financing alternatives.
  
  
  SCS LOW SOOT DIESEL DESIGN:
  
  Dr.  Andrew A.  Pouring,  CEO and  founder of Sonex,  spoke first of the testing
  programs  with two  foreign  engine  manufacturers  in place  last  year for the
  patented Sonex  Combustion  System (SCS)  technology for in-cylinder  control of
  ignition and combustion in  direct-injected  (DI) diesel  engines.  He described
  specific  problems  encountered  both by Sonex and by the  engine  manufacturers
  during the testing  phases.  Based on the  experiences  of these  programs,  Dr.
  Pouring told the audience that management had come to the realization that Sonex
  lacked the resources to address issues such as piston  manufacturing  processes,
  durability  testing,  and cost  analysis.  He intends to focus now on  obtaining
  commercial partners, such as independent engine testing firms or major component
  suppliers,  to achieve a maturation of the SCS relative to the  expectations  of
  engine manufacturers.
  
  In that regard,  Dr.  Pouring  provided an  explanation of the work performed by
  Ricardo Consulting Engineers Ltd of Shoreham,  England,  that confirmed the soot
  reduction  capability  of the SCS Low Soot design in a truck diesel  engine.  He
  noted that Ricardo is one the world's leading engine  engineering and powertrain
  consulting  firms to the automotive  industry.  Dr. Pouring said that Ricardo is
  introducing  the SCS Low Soot  design  results to  potential  customers,  and is
  working   with  Sonex  to  pursue   commercialization   projects   with   engine
  manufacturers.
  
  
  DARPA CONTRACT:
  
  Dr. Pouring then addressed the $744,246  contract  awarded  recently to Sonex by
  DARPA. He described how the SCS technology  would be applied to begin the design
  and development of a "heavy fuel" engine (HFE) conversion process for a gasoline
  automotive  engine.  DARPA's Tactical  Technology  Office (TTO) currently has an
  interest  in such an  engine  for  potential  use in the  A160  Hummingbird,  an
  experimental  helicopter-type unmanned aerial vehicle (UAV) under development as
  part of the joint DARPA/Army Future Combat Systems (FCS) program.
  
  Dr.  Pouring  informed  shareholders  that the  Department  of Defense (DoD) has
  issued  a  directive   requiring   engines  used  in  UAVs  and  other  military
  applications for which gasoline  storage and use are undesirable,  to operate on
  less volatile,  diesel-type,  kerosene-based  "heavy fuels" to reduce the hazard
  and  logistics  burden  associated  with  gasoline.  He said Sonex  already  has
  successfully  established an HFE technology  baseline by applying the SCS to the
  conversion   of   several   sizes  of   commercially   available,   lightweight,
  spark-ignited  (SI),  two-stroke  gasoline  engines for use in UAVs to start and
  operate on heavy fuels.
  
  Dr. Pouring  explained that this program with DARPA will focus on an SCS process
  to convert an existing SI,  four-stroke  engine from gasoline operation to heavy
  fuel operation.  Under the current level of effort and funding, Sonex expects to
  achieve a laboratory  configuration  of the SCS four-stroke  engine operating on
  heavy fuels with power and fuel  consumption  essentially  equal to operation of
  the stock engine on gasoline.
  
  The DARPA funding is directed towards further development of a new, enhanced SCS
  process,  called Stratified Charge, Radical Ignition (SCRI), for low compression
  ratio  direct  injected  (DI)  engines.  Sonex  believes  that SCRI will  enable
  practical application of an alternative  combustion process known as homogeneous
  charge  compression  ignition  (HCCI) that is being  examined  by the  worldwide
  automotive  industry.  HCCI has  been  studied  by many  researchers  for  years
  because,  in theory,  it can lower emissions  while also achieving  reduced fuel
  consumption.  The lack of a method for controlling the ignition point,  however,
  has prevented practical implementation of HCCI. With the SCRI, Sonex believes it
  has attained the control of ignition that will make HCCI viable for military and
  commercial application.
  
  SCS  SCRI  is  an  in-cylinder  method  for  isolating  a  small  portion  of an
  unthrottled,  lean air-fuel charge in each combustion  cycle to produce reactive
  chemical  species  (RCS) that are carried  over to cause  sparkless  compression
  ignition in the next cycle at gasoline  compression ratios. The SCS SCRI process
  for four-stroke engines achieves  compression  ignition-combustion  of the heavy
  fuel  without  raising  the  compression  ratio to the  levels  found in  diesel
  engines.  As a result,  the  inherent  light  weight of the  gasoline  engine is
  preserved  and peak  combustion  pressures  are  limited  to  those of  gasoline
  operation.
  
  SCRI development to date has taken place on a DI, single  cylinder,  feasibility
  demonstrator  engine at Sonex. The engine starts and operates on heavy fuel over
  a wide  range of engine  speeds  and  loads,  with good  fuel  economy,  without
  knocking,  and with significantly lower particulate and NOx (oxides of nitrogen)
  emissions.  The  objective  of the DARPA  program  is to  translate  the  single
  cylinder results to a multi-cylinder engine.
  
  Dr. Pouring said the availability of the resultant  multi-cylinder,  four-stroke
  HFE from a successful  outcome of the DARPA  project  could lead to use in other
  military engine programs,  as well as having potential for use in the commercial
  marine  market in pleasure  boats.  He noted that boaters would prefer to have a
  diesel fueled engine as a safer  alternative the current  gasoline engines which
  too often result in dangerous onboard fires.
  
  
  SAIC CONTRACT:
  
  Dr.  Pouring  elaborated  as well on the $200,000 DoD  subcontract  from Science
  Applications  International  Corporation  (SAIC)  announced  by  Sonex  in early
  August.  He noted that the award was for initial funding to begin the conversion
  of a 75 horsepower,  water cooled, gasoline engine to start and operate on heavy
  fuels for use in a UAV weapon system. Under this project, Sonex will work with a
  commercially available lightweight,  SI, two-stroke,  gasoline engine, and begin
  development  of an  SCS  modified  combustion  chamber  design  and  proprietary
  starting  system to permit the  converted  engine to start and  operate on heavy
  fuels. Dr. Pouring explained that SAIC is waiting for approval before the end of
  the year of remaining  funding of  approximately  $136,000 for Sonex to complete
  the design and testing  process to achieve a prototype HFE. Such an engine could
  enable the DoD to develop intermediate size UAVs for varied missions.
  
  
  ENERGY POLICY ACT OF 2002
  
  Mr. Keller reported that the House and Senate  currently are debating a national
  energy bill that upon enactment is expected to include provisions  assigning the
  Department  of  Transportation  (DOT)  the  task of  issuing  new  fuel  mileage
  standards  within two years of  enactment,  as well as  allocating  millions  in
  fiscal 2003 funding to support development of innovative propulsion technologies
  for the automotive industry.  The technology  development funding is expected to
  be targeted to fuel cell development,  hybrid propulsion  systems,  and advanced
  internal combustion engine  technologies.  In response,  Sonex plans to complete
  development,  commercialize,  and  market  its SCRI  combustion  process  to the
  automotive industry as well as the DoD. Sonex believes that the SCRI "lean-burn,
  fast-burn"  process,  with further  development,  can also be applied to engines
  using gasoline and other fuels.
  
  Mr. Keller explained that high mileage five-passenger automobiles using gasoline
  direct injected (GDI) engines presently are sold in Japan and Europe but are not
  available in the U.S. due to high NOx emissions. In literature made available to
  the  shareholders,  Sonex  stated its belief  that  SCS-SCRI  could  support the
  development  of GDI  engines  of all sizes by 2007  that  achieve  fuel  mileage
  improvements of 25% to 30% and meet EPA emission standards,  without sacrificing
  weight and vehicle safety.
  
  Mr. Keller added that Sonex has  effectively  presented the SCS-SCRI  technology
  during the on-going  House-Senate  Conference  on the Energy  Policy Act of 2002
  (H.R.  4).  Sonex  supported  language in H.R. 4 that would apply the  Corporate
  Average Fuel Economy  (CAFE)  rulemaking  process as  prescribed by U.S. Code to
  encourage   industrial   investment   in   feasible,   innovative,   fuel-saving
  technologies  that could be put into  production in the near term. The House and
  Senate recently have added provisions for funding specific vehicular  propulsion
  R&D priorities that include GDI engines and related engine systems.
  
  He  noted  that the news  media  has  reported  recently  that the  House-Senate
  legislative  conference  has agreed that  future  fuel  savings of at least five
  billion  gallons of gasoline.  Mr. Keller  pointed out,  however,  that the news
  media has not linked this legislation to the CAFE rulemaking  process. He stated
  that this  effort  marks the  first  time  since  1984  that  legislation  would
  authorize DOT to address  changing the vehicular CAFE fuel mileage standard from
  the 27.5 miles per gallon now set forth in the U.S.  Code. He further  explained
  that this multi-step rulemaking process is open to the public.
  
  According  to Mr.  Keller,  the  starting  point for a higher CAFE fuel  mileage
  standard is the DOT issue of a Request for Comments (RFC) on  technologies  that
  could be made available for increasing fuel economy. As prescribed by U.S. Code,
  Title 49,  32902  (f),  the RFC  information  will be used by the  Secretary  of
  Transportation  when  deciding  future fuel  mileage  standards  by  considering
  technological  feasibility,  economic practicability,  the effect of other motor
  vehicle standards of the government on fuel economy,  and the need of the United
  States to conserve  energy.  Mr.  Keller noted that an RFC process is ongoing in
  the DOT rulemaking for light truck model years  2005-2010,  during which process
  Sonex has  submitted  information  on the  merits of its  combustion  technology
  relative to other "lean-burn, fast-burn" combustion processes as used in today's
  spark ignited GDI engines. He said that Sonex would participate  actively in the
  proposed CAFE rulemaking process.
  
  In addition, Mr. Keller stated that the language of H.R. 4 prescribes a study to
  be administered by the DOT and performed by the National  Academy of Sciences as
  to the feasibility of reducing the use of fuel by automobiles  relative to model
  year 2010. Sonex will provide  suggestions to the DOT on the impact of efficient
  and  reduced   emissions  SCS  direct  injection   gasoline  and  diesel  engine
  technologies for consideration by the study panel.
  
  The Company's  literature also states that the anticipated passage of the Energy
  Policy Act of 2002 in its current  form will  challenge  Sonex to continue  SCRI
  technology  maturation  work for GDI engines.  In particular,  outcomes from the
  DARPA program on heavy fuel should  validate the SCS technology for  in-cylinder
  control of ignition and combustion  that could be applied to a gasoline  powered
  version.
  
  
  RECENT STOCK SALES:
  
  Mr.  Lawrence H. Hyde, a member of the  Company's  Board of  Directors,  briefly
  spoke to address shareholder questions concerning the recent disclosure of sales
  of Sonex stock by Proactive,  et.al., a group of affiliated  investment entities
  and  individuals  which are the beneficial  owners of  approximately  23% of the
  Company's  Common Stock.  [Mr. Myron A. Wick,  III, Sonex Chairman of the Board,
  and Mr. Charles C. McGettigan,  director,  are considered beneficial owners of a
  portion of the shares owned by Proactive,  et.al.,  by virtue of their executive
  and  ownership  positions in various  partnerships  which are part of Proactive,
  et.al.]
  
  Mr.  Hyde  stated  that he had  spoken  this week with Mr.  Wick,  who  provided
  assurances that the sales of Sonex stock by two of Proactive,  et.al.  entities,
  were not done based on the Company's results.  Rather, the sales are routine for
  all of the  Proactive  et.al.  investments  and are made to raise  cash to cover
  administrative  expenses of the  entities.  Mr. Hyde  pointed out that the total
  shares sold recently  represent  less than 2% of the total  holdings in Sonex by
  Proactive, et.al.
  
  CONTACT:   Sonex  Research,   Inc.:   George  Ponticas,   410-266-5556,   email:
  sonex@erols.com,   www.sonexresearch.com;  Investor  Relations:  The  Scottsdale
  Group,   Susan   Ladue,   781-292-1050,   email:    info@thescottsdalegroup.com,
  www.thescottsdalegroup.com.
  
  
  
  ABOUT DARPA
  
  The Defense Advanced  Research Projects Agency (DARPA) is an organization of 240
  personnel  (approximately 140 of which are technical) directly managing a budget
  of about $2.5 billion. The DARPA mission is to develop  imaginative,  innovative
  and often high-risk research ideas offering a significant  technological  impact
  that will go well beyond the normal evolutionary developmental approaches;  and,
  to pursue these ideas from the  demonstration of technical  feasibility  through
  the development of prototype systems.  More information about DARPA can be found
  on the Internet at www.darpa.mil.
  
  
  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 SCS Stratified Charge Radical
  Ignition  (SCRI)  combustion  process to the automotive  industry in response to
  forthcoming  increases in national  vehicle fuel mileage  standards.  Presently,
  high mileage, roomy and safe five-passenger  automobiles using gasoline,  direct
  injected (GDI) engines are sold only in Japan and Europe due to high  emissions.
  Sonex intends to conclusively  demonstrate that SCS-SCRI will enable GDI engined
  vehicles to achieve 50 mpg (highway) while meeting emissions standards to permit
  sale in the U.S. as a viable,  near-term  alternative to  longer-term  solutions
  such as  improvements  in hybrid  propulsion  systems  or years of  further  R&D
  required for fuel cell technology to become practical.
  
  Additionally, independent third-party testing has confirmed the potential of the
  SCS application for DI diesel engines to reduce harmful soot in-cylinder without
  increasing   fuel   consumption.   Sonex  is  pursuing   joint   marketing   and
  commercialization  programs  for the  SCS low  soot  technology  with  committed
  industrial partners.
  
  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.
  Examples include UAVs (unmanned aerial vehicles) and ATVs (all-terrain vehicles)
  such as those used by U.S.  defense forces in  Afghanistan,  as well as outboard
  engines, small watercraft used as targets, and generator sets.
  
  
  CAUTION REGARDING FORWARD-LOOKING STATEMENTS
  
  "Forward-looking"  statements  contained  in this  announcement,  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.  Additional information regarding the risks faced by
  Sonex is provided in the  Company's  periodic  filings with the  Securities  and
  Exchange Commission under the heading "Risk Factors". Such filings are available
  upon request from the Company or online in the EDGAR database at www.sec.gov.
  
  
                                   ###
  
  
  
  SIGNATURES
  
  Pursuant to the requirements of the Securities Exchange Act of 1934, the
  registrant has duly caused this report to be signed on its behalf by the
  undersigned hereunto duly authorized.
  
  October 10, 2002
  
  SONEX RESEARCH, INC.
  Registrant
  
  /s/ George E. Ponticas
  ----------------------
  George E. Ponticas
  Chief Financial Officer
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text: SECURITIES AND EXCHANGE COMMISSION
                            Washington, D.C. 20549
  
                                   FORM 8-K
  
                                CURRENT REPORT
                Pursuant to Section 13 or 15(d) of the Securities
                             Exchange Act of 1934
  
        Date of Report (Date of earliest event reported): October 10, 2002
  
                              SONEX RESEARCH, INC.
                (Exact name of registrant as specified in Charter)
  
           Maryland                  0-14465                52-1188993
        (State or other           (Commision file         (IRS employer
        jurisdiction of               number)           identification no.)
         incorporation)
  
                      23 Hudson Street, Annapolis, MD 21401
                     (Address of principal executive offices)
  
                                (410) 266-5556
               (Registrant's telephone number, including area code)
  
                                      N/A
           (Former name or former address, if changed since last report)
  
  ITEM 5. - OTHER EVENTS
  
  On October 10, 2002, Sonex Research,  Inc. (the "Company")  posted the following
  announcement on its website (www.sonexresearch.com):
  
                   SONEX HOLDS ANNUAL SHAREHOLDER MEETING,
                PROVIDES DETAILS ON RECENT MILITARY CONTRACTS
  
  ANNAPOLIS,  MARYLAND,  October 10, 2002 - SONEX  RESEARCH,  INC.  (OTC BB: SONX)
  yesterday held its Annual Meeting of Shareholders  to re-elect  directors and to
  report on the latest  developments  and  changes  taking  place at the  Company.
  Management  provided  additional  information  about recent  military  contracts
  awarded,  including  the  $744,246  contract  awarded  to Sonex  by the  Defense
  Advanced  Research  Projects Agency (DARPA) which was announced last week by the
  Company.  Sonex also  addressed  the  potential  implications  to the Company of
  enactment  of the  proposed  Energy  Policy  Act of 2002  being  debated  now by
  Congress.  Finally,  a member of the Company's Board also assured attendees that
  recent sales of Sonex stock by the affiliated investment entities which together
  are  the  Company's  largest  shareholder  were  routine  sales  made  to  cover
  administrative  expenses and  represented  an  insignificant  percentage  of the
  shares held. Approximately 50 people attended the meeting at the Hampton Inn and
  Suites Annapolis.
  
  BUSINESS CHANGES:
  
  George E. Ponticas,  Sonex CFO and Secretary,  spoke of the  difficulties of the
  past year that were overcome by the Company while  suggesting that there is much
  more to do now that recent  contracts have been received to provide a foundation
  on  which to  build.  He noted  that at the end of 2001,  financial  constraints
  resulted  in a  reduction  in staffing  with total  employment  falling to three
  full-time  personnel,  including  officers,  and the  part-time  services of Mr.
  Michael I.  Keller,  the  individual  who serves as the  Company's  Director  of
  Business Development and Government Programs.
  
  Mr. Ponticas said that past year's severe reduction of cash expenditures and the
  personal  hardships  endured by the remaining  Company  personnel,  coupled with
  timely  financial  support  from  shareholders,  helped the Company  continue in
  operation.  He added that as a result of the recent  contracts and the prospects
  for a third  government  contract,  Sonex finds  itself with  numerous  business
  opportunities  and has hired  additional  technical  staffing to support the new
  projects.  Mr.  Ponticas  gave  special  thanks  to a  number  of  shareholders,
  mentioning  them by name, who have been lending their time and energy to support
  management's efforts.
  
  He also noted that in  anticipation  of the changes to take place,  in May Sonex
  retained The  Scottsdale  Group (TSG) as its investor  relations  and  financial
  communications consultant. Mr. Ponticas stated that TSG will be helping to raise
  the Company's public profile in the automotive and defense industries as well as
  the  investment  community.  Ms. Susan Ladue,  a principal in TSG,  later gave a
  brief presentation to the shareholder meeting concerning upcoming initiatives.
  
  Mr.  Ponticas also told those in attendance  that Sonex is seeking to supplement
  its management  capabilities  and position itself to consider  viable  strategic
  opportunities.  To help with  those  efforts,  he  announced  that last week the
  Company engaged the services of Mr. John H. Elstner,  a local consultant who has
  experience  in  building  companies  and  obtaining  capital.  In  response to a
  shareholder  questions regarding the need for additional  capital,  Mr. Ponticas
  responded that with assistance  from Mr. Elstner,  the Company would seek a line
  of credit  secured by the billings  from the DARPA  contract  and explore  other
  financing alternatives.
  
  SCS LOW SOOT DIESEL DESIGN:
  
  Dr.  Andrew A.  Pouring,  CEO and  founder of Sonex,  spoke first of the testing
  programs  with two  foreign  engine  manufacturers  in place  last  year for the
  patented Sonex  Combustion  System (SCS)  technology for in-cylinder  control of
  ignition and combustion in  direct-injected  (DI) diesel  engines.  He described
  specific  problems  encountered  both by Sonex and by the  engine  manufacturers
  during the testing  phases.  Based on the  experiences  of these  programs,  Dr.
  Pouring told the audience that management had come to the realization that Sonex
  lacked the resources to address issues such as piston  manufacturing  processes,
  durability  testing,  and cost  analysis.  He intends to focus now on  obtaining
  commercial partners, such as independent engine testing firms or major component
  suppliers,  to achieve a maturation of the SCS relative to the  expectations  of
  engine manufacturers.
  
  In that regard,  Dr.  Pouring  provided an  explanation of the work performed by
  Ricardo Consulting Engineers Ltd of Shoreham,  England,  that confirmed the soot
  reduction  capability  of the SCS Low Soot design in a truck diesel  engine.  He
  noted that Ricardo is one the world's leading engine  engineering and powertrain
  consulting  firms to the automotive  industry.  Dr. Pouring said that Ricardo is
  introducing  the SCS Low Soot  design  results to  potential  customers,  and is
  working   with  Sonex  to  pursue   commercialization   projects   with   engine
  manufacturers.
  
  DARPA CONTRACT:
  
  Dr. Pouring then addressed the $744,246  contract  awarded  recently to Sonex by
  DARPA. He described how the SCS technology  would be applied to begin the design
  and development of a "heavy fuel" engine (HFE) conversion process for a gasoline
  automotive  engine.  DARPA's Tactical  Technology  Office (TTO) currently has an
  interest  in such an  engine  for  potential  use in the  A160  Hummingbird,  an
  experimental  helicopter-type unmanned aerial vehicle (UAV) under development as
  part of the joint DARPA/Army Future Combat Systems (FCS) program.
  
  Dr.  Pouring  informed  shareholders  that the  Department  of Defense (DoD) has
  issued  a  directive   requiring   engines  used  in  UAVs  and  other  military
  applications for which gasoline  storage and use are undesirable,  to operate on
  less volatile,  diesel-type,  kerosene-based  "heavy fuels" to reduce the hazard
  and  logistics  burden  associated  with  gasoline.  He said Sonex  already  has
  successfully  established an HFE technology  baseline by applying the SCS to the
  conversion   of   several   sizes  of   commercially   available,   lightweight,
  spark-ignited  (SI),  two-stroke  gasoline  engines for use in UAVs to start and
  operate on heavy fuels.
  
  Dr. Pouring  explained that this program with DARPA will focus on an SCS process
  to convert an existing SI,  four-stroke  engine from gasoline operation to heavy
  fuel operation.  Under the current level of effort and funding, Sonex expects to
  achieve a laboratory  configuration  of the SCS four-stroke  engine operating on
  heavy fuels with power and fuel  consumption  essentially  equal to operation of
  the stock engine on gasoline.
  
  The DARPA funding is directed towards further development of a new, enhanced SCS
  process,  called Stratified Charge, Radical Ignition (SCRI), for low compression
  ratio  direct  injected  (DI)  engines.  Sonex  believes  that SCRI will  enable
  practical application of an alternative  combustion process known as homogeneous
  charge  compression  ignition  (HCCI) that is being  examined  by the  worldwide
  automotive  industry.  HCCI has  been  studied  by many  researchers  for  years
  because,  in theory,  it can lower emissions  while also achieving  reduced fuel
  consumption.  The lack of a method for controlling the ignition point,  however,
  has prevented practical implementation of HCCI. With the SCRI, Sonex believes it
  has attained the control of ignition that will make HCCI viable for military and
  commercial application.
  
  SCS  SCRI  is  an  in-cylinder  method  for  isolating  a  small  portion  of an
  unthrottled,  lean air-fuel charge in each combustion  cycle to produce reactive
  chemical  species  (RCS) that are carried  over to cause  sparkless  compression
  ignition in the next cycle at gasoline  compression ratios. The SCS SCRI process
  for four-stroke engines achieves  compression  ignition-combustion  of the heavy
  fuel  without  raising  the  compression  ratio to the  levels  found in  diesel
  engines.  As a result,  the  inherent  light  weight of the  gasoline  engine is
  preserved  and peak  combustion  pressures  are  limited  to  those of  gasoline
  operation.
  
  SCRI development to date has taken place on a DI, single  cylinder,  feasibility
  demonstrator  engine at Sonex. The engine starts and operates on heavy fuel over
  a wide  range of engine  speeds  and  loads,  with good  fuel  economy,  without
  knocking,  and with significantly lower particulate and NOx (oxides of nitrogen)
  emissions.  The  objective  of the DARPA  program  is to  translate  the  single
  cylinder results to a multi-cylinder engine.
  
  Dr. Pouring said the availability of the resultant  multi-cylinder,  four-stroke
  HFE from a successful  outcome of the DARPA  project  could lead to use in other
  military engine programs,  as well as having potential for use in the commercial
  marine  market in pleasure  boats.  He noted that boaters would prefer to have a
  diesel fueled engine as a safer  alternative the current  gasoline engines which
  too often result in dangerous onboard fires.
  
  SAIC CONTRACT:
  
  Dr.  Pouring  elaborated  as well on the $200,000 DoD  subcontract  from Science
  Applications  International  Corporation  (SAIC)  announced  by  Sonex  in early
  August.  He noted that the award was for initial funding to begin the conversion
  of a 75 horsepower,  water cooled, gasoline engine to start and operate on heavy
  fuels for use in a UAV weapon system. Under this project, Sonex will work with a
  commercially available lightweight,  SI, two-stroke,  gasoline engine, and begin
  development  of an  SCS  modified  combustion  chamber  design  and  proprietary
  starting  system to permit the  converted  engine to start and  operate on heavy
  fuels. Dr. Pouring explained that SAIC is waiting for approval before the end of
  the year of remaining  funding of  approximately  $136,000 for Sonex to complete
  the design and testing  process to achieve a prototype HFE. Such an engine could
  enable the DoD to develop intermediate size UAVs for varied missions.
  
  ENERGY POLICY ACT OF 2002
  
  Mr. Keller reported that the House and Senate  currently are debating a national
  energy bill that upon enactment is expected to include provisions  assigning the
  Department  of  Transportation  (DOT)  the  task of  issuing  new  fuel  mileage
  standards  within two years of  enactment,  as well as  allocating  millions  in
  fiscal 2003 funding to support development of innovative propulsion technologies
  for the automotive industry.  The technology  development funding is expected to
  be targeted to fuel cell development,  hybrid propulsion  systems,  and advanced
  internal combustion engine  technologies.  In response,  Sonex plans to complete
  development,  commercialize,  and  market  its SCRI  combustion  process  to the
  automotive industry as well as the DoD. Sonex believes that the SCRI "lean-burn,
  fast-burn"  process,  with further  development,  can also be applied to engines
  using gasoline and other fuels.
  
  Mr. Keller explained that high mileage five-passenger automobiles using gasoline
  direct injected (GDI) engines presently are sold in Japan and Europe but are not
  available in the U.S. due to high NOx emissions. In literature made available to
  the  shareholders,  Sonex  stated its belief  that  SCS-SCRI  could  support the
  development  of GDI  engines  of all sizes by 2007  that  achieve  fuel  mileage
  improvements of 25% to 30% and meet EPA emission standards,  without sacrificing
  weight and vehicle safety.
  
  Mr. Keller added that Sonex has  effectively  presented the SCS-SCRI  technology
  during the on-going  House-Senate  Conference  on the Energy  Policy Act of 2002
  (H.R.  4).  Sonex  supported  language in H.R. 4 that would apply the  Corporate
  Average Fuel Economy  (CAFE)  rulemaking  process as  prescribed by U.S. Code to
  encourage   industrial   investment   in   feasible,   innovative,   fuel-saving
  technologies  that could be put into  production in the near term. The House and
  Senate recently have added provisions for funding specific vehicular  propulsion
  R&D priorities that include GDI engines and related engine systems.
  
  He  noted  that the news  media  has  reported  recently  that the  House-Senate
  legislative  conference  has agreed that  future  fuel  savings of at least five
  billion  gallons of gasoline.  Mr. Keller  pointed out,  however,  that the news
  media has not linked this legislation to the CAFE rulemaking  process. He stated
  that this  effort  marks the  first  time  since  1984  that  legislation  would
  authorize DOT to address  changing the vehicular CAFE fuel mileage standard from
  the 27.5 miles per gallon now set forth in the U.S.  Code. He further  explained
  that this multi-step rulemaking process is open to the public.
  
  According  to Mr.  Keller,  the  starting  point for a higher CAFE fuel  mileage
  standard is the DOT issue of a Request for Comments (RFC) on  technologies  that
  could be made available for increasing fuel economy. As prescribed by U.S. Code,
  Title 49,  32902  (f),  the RFC  information  will be used by the  Secretary  of
  Transportation  when  deciding  future fuel  mileage  standards  by  considering
  technological  feasibility,  economic practicability,  the effect of other motor
  vehicle standards of the government on fuel economy,  and the need of the United
  States to conserve  energy.  Mr.  Keller noted that an RFC process is ongoing in
  the DOT rulemaking for light truck model years  2005-2010,  during which process
  Sonex has  submitted  information  on the  merits of its  combustion  technology
  relative to other "lean-burn, fast-burn" combustion processes as used in today's
  spark ignited GDI engines. He said that Sonex would participate  actively in the
  proposed CAFE rulemaking process.
  
  In addition, Mr. Keller stated that the language of H.R. 4 prescribes a study to
  be administered by the DOT and performed by the National  Academy of Sciences as
  to the feasibility of reducing the use of fuel by automobiles  relative to model
  year 2010. Sonex will provide  suggestions to the DOT on the impact of efficient
  and  reduced   emissions  SCS  direct  injection   gasoline  and  diesel  engine
  technologies for consideration by the study panel.
  
  The Company's  literature also states that the anticipated passage of the Energy
  Policy Act of 2002 in its current  form will  challenge  Sonex to continue  SCRI
  technology  maturation  work for GDI engines.  In particular,  outcomes from the
  DARPA program on heavy fuel should  validate the SCS technology for  in-cylinder
  control of ignition and combustion  that could be applied to a gasoline  powered
  version.
  
  RECENT STOCK SALES:
  
  Mr.  Lawrence H. Hyde, a member of the  Company's  Board of  Directors,  briefly
  spoke to address shareholder questions concerning the recent disclosure of sales
  of Sonex stock by Proactive,  et.al., a group of affiliated  investment entities
  and  individuals  which are the beneficial  owners of  approximately  23% of the
  Company's  Common Stock.  [Mr. Myron A. Wick,  III, Sonex Chairman of the Board,
  and Mr. Charles C. McGettigan,  director,  are considered beneficial owners of a
  portion of the shares owned by Proactive,  et.al.,  by virtue of their executive
  and  ownership  positions in various  partnerships  which are part of Proactive,
  et.al.]
  
  Mr.  Hyde  stated  that he had  spoken  this week with Mr.  Wick,  who  provided
  assurances that the sales of Sonex stock by two of Proactive,  et.al.  entities,
  were not done based on the Company's results.  Rather, the sales are routine for
  all of the  Proactive  et.al.  investments  and are made to raise  cash to cover
  administrative  expenses of the  entities.  Mr. Hyde  pointed out that the total
  shares sold recently  represent  less than 2% of the total  holdings in Sonex by
  Proactive, et.al.
  
  CONTACT:   Sonex  Research,   Inc.:   George  Ponticas,   410-266-5556,   email:
  sonex@erols.com,   www.sonexresearch.com;  Investor  Relations:  The  Scottsdale
  Group,   Susan   Ladue,   781-292-1050,   email:    info@thescottsdalegroup.com,
  www.thescottsdalegroup.com.
  
  ABOUT DARPA
  
  The Defense Advanced  Research Projects Agency (DARPA) is an organization of 240
  personnel  (approximately 140 of which are technical) directly managing a budget
  of about $2.5 billion. The DARPA mission is to develop  imaginative,  innovative
  and often high-risk research ideas offering a significant  technological  impact
  that will go well beyond the normal evolutionary developmental approaches;  and,
  to pursue these ideas from the  demonstration of technical  feasibility  through
  the development of prototype systems.  More information about DARPA can be found
  on the Internet at www.darpa.mil.
  
  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 SCS Stratified Charge Radical
  Ignition  (SCRI)  combustion  process to the automotive  industry in response to
  forthcoming  increases in national  vehicle fuel mileage  standards.  Presently,
  high mileage, roomy and safe five-passenger  automobiles using gasoline,  direct
  injected (GDI) engines are sold only in Japan and Europe due to high  emissions.
  Sonex intends to conclusively  demonstrate that SCS-SCRI will enable GDI engined
  vehicles to achieve 50 mpg (highway) while meeting emissions standards to permit
  sale in the U.S. as a viable,  near-term  alternative to  longer-term  solutions
  such as  improvements  in hybrid  propulsion  systems  or years of  further  R&D
  required for fuel cell technology to become practical.
  
  Additionally, independent third-party testing has confirmed the potential of the
  SCS application for DI diesel engines to reduce harmful soot in-cylinder without
  increasing   fuel   consumption.   Sonex  is  pursuing   joint   marketing   and
  commercialization  programs  for the  SCS low  soot  technology  with  committed
  industrial partners.
  
  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.
  Examples include UAVs (unmanned aerial vehicles) and ATVs (all-terrain vehicles)
  such as those used by U.S.  defense forces in  Afghanistan,  as well as outboard
  engines, small watercraft used as targets, and generator sets.
  
  CAUTION REGARDING FORWARD-LOOKING STATEMENTS
  
  "Forward-looking"  statements  contained  in this  announcement,  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.  Additional information regarding the risks faced by
  Sonex is provided in the  Company's  periodic  filings with the  Securities  and
  Exchange Commission under the heading "Risk Factors". Such filings are available
  upon request from the Company or online in the EDGAR database at www.sec.gov.
  
                                   ###
  
  SIGNATURES
  
  Pursuant to the requirements of the Securities Exchange Act of 1934, the
  registrant has duly caused this report to be signed on its behalf by the
  undersigned hereunto duly authorized.
  
  October 10, 2002
  
  SONEX RESEARCH, INC.
  Registrant
  
  /s/ George E. Ponticas
  ----------------------
  George E. Ponticas
  Chief Financial Officer