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Zix Corporation Announces $3.0 Million Note Restructuring

Move Helps to Reduce Potential Share Dilution and Bolsters Current Cash Position

DALLAS--(BUSINESS WIRE)--Feb. 28, 2007--Zix Corporation (ZixCorp(R)), (Nasdaq:ZIXI), the leader in hosted services for email encryption and e-prescribing, today announced that it has entered into a definitive agreement with sanofi-aventis U.S. Inc., a successor-in-interest to Aventis Inc., to restructure a $3.0 million principal amount note due March 2007.

The note, payable in cash or shares of ZixCorp common stock, was originally issued in January 2004 in conjunction with the acquisition by ZixCorp of the assets and business of MyDocOnline, Inc., an affiliate of Aventis Inc., and a provider of secure Web-based communications, disease management and laboratory information solutions.

As part of the new agreement, sanofi-aventis U.S. Inc. will be issued 700,000 unrestricted shares of ZixCorp common stock. In addition, ZixCorp will pay $200,000 cash in eight quarterly installments, beginning in early April 2008, which payments are secured by a letter of credit. ZixCorp will also issue a five-year warrant for 145,853 shares at an exercise price of $4.48 per share. A warrant for the same number of shares was originally issued to an affiliate of Aventis Inc. in conjunction with the acquisition of the assets and business of MyDocOnline, Inc. and has recently expired.

"We are pleased with the new terms that we've negotiated to restructure the only meaningful debt obligation on our balance sheet," said Rick Spurr, chief executive officer for ZixCorp. "This resolution strikes a good balance for our shareholders and the Company by reducing the amount of stock to be issued while deferring the payments until they can be better covered by our projected cash flow."

About Zix Corporation

ZixCorp is the leading provider of hosted email encryption and e-prescribing services. ZixCorp's hosted Email Encryption Service provides an easy and cost-effective way to ensure customer privacy and regulatory compliance for corporate email. Its PocketScript(R) e-prescribing service reduces costs and improves patient care by automating the prescription process between payors, doctors, and pharmacies. For more information, visit

Public Relations:
Farrah Corley, 214-370-2175
Investor Relations:
Peter Wilensky, 214-515-7357

SOURCE: Zix Corporation