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Zix Corporation Partners with Illinois Electronic Prescribing Collaborative for Statewide e-Prescribing Initiative

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

DALLAS--(BUSINESS WIRE)--Feb. 26, 2007--Zix Corporation (ZixCorp(R)), (Nasdaq:ZIXI), the leader in hosted services for email encryption and e-prescribing, today announced its participation in a multi-payor and statewide health care industry initiative with the goal of improving patient safety through e-prescribing technology. The initiative, to be split evenly between ZixCorp and a second vendor, features a self-perpetuating e-prescribing program. In addition to covering each prescriber's deployment and first year of service, transaction fees will be used to fund future deployments of additional prescribers, creating a self-perpetuating expansion model.

An announcement by the Institute of Medicine (IOM) highlights findings from their recent study, which shows that medication errors were found to be among the most common medical errors, harming at least 1.5 million Americans per year. "An e-prescription is a safer prescription and our goal is to achieve widespread adoption of the technology throughout Illinois," said Stan Borg, chief medical officer for Blue Cross and Blue Shield of Illinois. "As other health plans join in and as physicians generate e-prescriptions, additional funds will be generated to bring on additional doctors."

ZixCorp's PocketScript(R) e-prescribing service enables Illinois physicians to order prescriptions through a secure wireless mobile PDA or secure Web site and deliver them electronically to retail pharmacies via SureScripts or mail order pharmacies via RxHub. PocketScript provides clinical decision support at the point-of-care with real-time access to a drug reference guide as well as patient-level eligibility, formulary, and co-pay information to aid the prescriber in selecting the most cost-effective prescription based on the patient's benefits. The application also provides comprehensive drug-to-drug and drug-to-allergy interaction alerts based on patient-specific dispensed drug history. PocketScript delivers end-to-end connectivity within the healthcare system to reduce unnecessary costs, improve patient safety and convenience, and enhance practice efficiency.

"This initiative is a critical step toward ensuring the state of Illinois remains at the forefront of healthcare and patient safety," said Rick Spurr, chief executive officer for ZixCorp. "This innovative initiative introduces a new self-perpetuating funding model in which subsequent deployments will be funded through ongoing transaction fees from previously deployed prescribers. Therefore, the program incorporates a high-touch support model that we have demonstrated leads to successful adoption and utilization along with a mechanism for growth. By offering the top payors across the state this new funding mechanism, I believe that this initiative could serve as a model for other states to accelerate the widespread adoption of this life-saving technology."

About Zix Corporation

ZixCorp provides easy-to-use-and-deploy email encryption and e-prescribing services that protect, manage, and deliver sensitive information to the healthcare, finance, insurance, and government industries. ZixCorp's hosted Email Encryption Service enables policy-driven email security, content filtering, and send-to-anyone capability. Its PocketScript(R) e-prescribing service provides point-of-care access and transmission of patient and payor data that improves patient care, reduces costs, and improves efficiency. For more information, visit

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

SOURCE: Zix Corporation