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Zix Corporation Awarded U.S. Patent for Secure Message Forwarding System; Company Also Announces Stock Option Grant

DALLAS--(BUSINESS WIRE)--June 16, 2004--Zix Corporation (ZixCorp(R)), (Nasdaq:ZIXI), a global provider of e-messaging protection and transaction services, today announced it has been granted patent 6,732,101 for a secure message forwarding system. ZixCorp's patented system allows secure messages to be sent to recipients who do not have a pair of public and private keys and do not have a desktop client. It also provides interoperability between different types of encryption systems.

The patent, originally filed in June 2000, discloses a forwarding system that receives messages for delivery, determines the recipient's best method of delivery, and processes the messages using an interoperability engine. The patented technology is the underlying foundation of the send-to-anyone capability implemented in the ZixMessage Center(TM), ZixVPM(R), ZixPort(TM), and ZixMail(R) secure e-messaging services.

"One thing that makes this system unique is the interoperability between different types of encryption systems. Our company's founder, David Cook, invented this method to enable a broader reach for confidential communication through the Internet," said John A. Ryan, chairman and chief executive officer. "This system helped initiate the ease of use inherent in all our secure e-messaging services, and provided a breakthrough in email encryption technology."

In addition, ZixCorp has several pending patents related to its communication protection and care delivery businesses. The company also received U.S. patent 6,675,153 earlier this year for a transaction authorization system that provides validation of online consumer transactions while protecting the confidentiality of personal information.

Also, in corporate governance news, ZixCorp announced in accordance with Nasdaq Marketplace Rule 4350, that as previously disclosed in the company's SEC filings, an inducement stock option award was granted to Richard D. Spurr, who was hired as ZixCorp's president and chief operating officer in January. Effective Feb. 24, 2004, Spurr was granted 10-year options to acquire 650,000 shares of ZixCorp common stock at an exercise price of $10.80 per share. The vesting schedule for the options is: 162,500 option shares vested on April 20, 2004, and the balance of the option shares vest quarterly and pro rata through Jan. 20, 2007.

About Zix Corporation

Zix Corporation (ZixCorp(R)) is a global provider of e-messaging protection and transaction services. ZixCorp offers a range of solutions to protect organizations from viruses, spam, and electronic attack, as well as enabling secure electronic communications, such as email encryption, e-prescribing, on-line doctor visits, and electronic lab results. ZixCorp helps organizations of any size to streamline operations, reduce risks, and leverage the efficiencies of e-messaging. For more information, visit www.zixcorp.com.

CONTACT: Zix Corporation, Dallas
Kim Tompkins, 214-515-7338
ktompkins@zixcorp.com

SOURCE: Zix Corporation