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Zix Corporation CEO Provides Corporate Update


DALLAS--(BUSINESS WIRE)--Jan. 5, 2006--Zix Corporation (ZixCorp(R)), (Nasdaq:ZIXI), a global provider of secure e-messaging and e-prescribing services, today offered a corporate update by its chief executive officer, Rick Spurr.

Regarding the e-prescribing business, Spurr said, "In the last earnings call we said that we were in discussions with four payors that had indicated they would make a decision by the end of the year. I would like to provide an update on this payor activity: ZixCorp was selected by a major payor for a funded 2006 e-prescribing initiative; the contracting process is underway and an announcement is dependent upon successful completion. We are also in late-stage discussions with the three additional payors and if we are selected, we will make announcements upon final contract signing."

Regarding fourth quarter e-prescribing recruiting efforts discussed in the third quarter earnings call, Spurr said, "As projected, we have now completed recruiting the 1,000 e-prescribers sponsored in the Aetna program and the 250 e-prescribers sponsored in the Independence Blue Cross Blue Shield pilot. Some of these e-prescribers have been deployed and we expect, as discussed in the earnings call, that all of these new e-prescribers will be deployed by the end of the first quarter of 2006."

Spurr also provided an update on electronic script volumes. "We continue to see tremendous growth in actual e-script volume, where in the fourth quarter of 2005, we processed 885,845 e-scripts and exited the year processing in excess of 80,000 scripts per week."

Spurr also provided an update on the eSecure business: "We continue to see customer renewal rates in excess of 95 percent. And though the number of new customers was up significantly, our total quarter-on-quarter orders were essentially flat due to a decrease in the size of the average order. To stimulate growth, we have added four telephone sales representatives to the existing five representatives on staff. Additionally, we continue to pursue new distribution partners like our recently announced contract with Postini. We also are pleased with the significant growth we've seen in the finance vertical, which has increased our addressable market."

Spurr concluded by saying, "In our next earnings call, we will provide a more comprehensive update on our company activities. And as substantive contracts are finalized, we will make those announcements if allowed by customers. My personal thanks to our loyal investors for your continued support. We are pleased with the recently announced actions to improve our balance sheet, we are optimistic regarding our prospects as we enter 2006 and believe our fundamentals have never been stronger."

About Zix Corporation

Zix Corporation (ZixCorp(R)) provides easy-to-use-and-deploy e-communication services that protect, manage, and deliver sensitive information to enterprises and consumers in healthcare, finance, insurance, and government. ZixCorp's eSecure services enable policy-driven e-mail encryption, content filtering, and send-to-anyone capability while its eHealth service improves patient care, reduces costs, and improves efficiency through an e-prescribing solution. For more information, visit www.zixcorp.com.

CONTACT: PAN Communications
Public Relations:
Christina Morris, 978-474-1900
cmorris@pancomm.com
or
Zix Corporation
Investor Relations:
Peter Wilensky, 214-515-7357
invest@zixcorp.com

SOURCE: Zix Corporation