The prototype developed by researchers from Loughborough University analyses changes in breathing patterns and converts 'breath signals' into words using pattern recognition software and an analogue-to-digital converter.
A speech synthesizer then reads the words aloud.
The Augmentative and Alternate Communication (AAC) device is designed for patients with complete or partial loss of voluntary muscle control who don't have the ability to make purposeful movements such as sniffing or blinking - gestures which previous AAC devices have come to rely upon.
It allows the user to control how he or she wishes to communicate - effectively enabling them to create their own language by varying the speed of their breathing.
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The academics have been joined in the project by Dr Atul Gaur, Consultant Anaesthetist at Glenfield Hospital, and Loughborough mechanical engineering student Robert Green, who will work on the device as part of his final year individual project.
"When it comes to teaching our invention to recognise words and phrases, we have so far recorded a 97.5 per cent success rate.
"Current AAC devices are slow and range from paper-based tools to expensive, sophisticated electronic devices. Our AAC device uses analogue signals in continuous form, which should give us a greater speed advantage because more information can be collected in a shorter space of time," he said.
"This device could transform the way people with severe muscular weakness or other speech disorders communicate," Gaur said.