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Zix Corporation Announces Contract for Statewide Initiative

Innovative Transaction Fee Model Designed for Multiple Payors to Create Recurring Revenues and Funding for Future Pocketscript(R) Deployments

DALLAS--(BUSINESS WIRE)--Dec. 27, 2006--Zix Corporation (ZixCorp(R)), (Nasdaq:ZIXI), the leader in hosted services for email encryption and e-prescribing, today announced a contract for a new 500-physician e-prescribing program, to be split evenly between ZixCorp and another vendor. In addition to a full sponsorship for each prescriber's deployment and first year of service, the contract also contains a $1 per qualified e-script transaction fee beginning in the first year and going forward, the majority of which will go to ZixCorp to cover on-going annual prescriber licenses and other costs associated with providing the service. The remainder of these transaction fees will be used to fund future deployments of additional prescribers, creating a self-perpetuating expansion model. The total dollar value of these script fees will be a function of the number of payors who ultimately choose to participate in the program.

ZixCorp's PocketScript(R) service provides an e-prescribing technology platform that enables physicians, through a wireless handheld PDA, to write prescriptions and then securely send them immediately and electronically to pharmacies via the SureScripts network or by mail order via RxHub, thus improving patient safety and convenience. The service allows confidential bi-directional communications between a pharmacist and PocketScript users to greatly enhance the prescription renewal process while also providing patient co-pay information at the point-of-care. Additionally, prescriptions can be written and managed through a ZixCorp secure Web site using a standard browser. During the prescribing process, the application provides real-time access at the point-of-care to formulary information, insurance coverage information, a drug reference guide, drug-to-drug and drug-to-allergy checking and patient-specific dispensed drug lists.

"Our participation in this innovative program reaffirms our leadership in the e-prescribing market," said Rick Spurr, chief executive officer for ZixCorp. "Including the recent announcement of Blue Cross Blue Shield of Massachusetts' enrollment in our new Premium Payor Services, we now have three e-prescribing programs where we are collecting a payor-funded transaction fee or equivalent. We believe this development marks a significant milestone in the evolution of a standardized and profitable economic model in the e-prescribing industry."

Following customer approval, an upcoming press release will provide additional details.

About Zix Corporation

Zix Corporation 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