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Zix Corporation Provides Over 130 Healthcare Organizations with e-Messaging Protection and Management Services

DALLAS--(BUSINESS WIRE)--July 24, 2003--

ZixCorp adds 90 new healthcare customers in the first six months of 2003

Zix Corporation (ZixCorp(TM)), (Nasdaq:ZIXI), a global provider of e-messaging protection and transaction services, today announced that over 130 healthcare organizations have chosen ZixCorp to provide e-messaging protection and management services. ZixCorp has seen significant growth in virtually all segments of the healthcare industry and in organizations of varying sizes. These organizations use ZixCorp services to assure corporate integrity, manage risk, maximize productivity, and to help comply with the mandates of the Health Insurance Portability and Accountability Act of 1996 (HIPAA) relating to e-messaging.

ZixCorp experienced an increase of over 220 percent in its healthcare customer base in the first six months of this year equating to an additional 90 customers, including many of the industry's leading organizations. Most notably is the increase to 26 percent of Blue Plans that are currently ZixCorp customers. ZixCorp is also beginning to see the benefit from its support of the HealthyEmail initiative, with 450 physician offices representing approximately 7,000 physicians participating in the program and receiving licenses of ZixMail(TM) since its inception in late February.

"We are starting to see the industry momentum being created by our increasing customer base. In particular, the increasing number of Blue Plans we have gained as customers has been in large part due to the communications between the Blue Plans and their trading partners," said Wael Mohamed, vice president of global distribution for ZixCorp. "We are experiencing similar increases in specific regions, like New Jersey where customers include: two health systems that represent eleven facilities; four hospitals; a PPO; and the New Jersey Hospital Association that have acquired our services in the last six months."

"ZixCorp's strategy and execution is paying off with an increased number of customers quarter over quarter," said Daniel S. Nutkis, vice president of product and strategy for ZixCorp. "Another indicator of future sales activity is the number of ZixAuditor(R) assessments being performed. In the fourth quarter 2002 we performed three audits, versus 87 requested in the second quarter of 2003. This appears to represent an increasing interest to better understand and address the issues concerning email protection. Once organizations review the results of their ZixAuditor assessment, they can better understand the specific risks and implications, and act accordingly to implement an appropriate solution."

University of Utah Health Science Center (UUHSC) is a ZixCorp customer using ZixVPM(R) and ZixPort(TM) services. "We are very happy with ZixCorp's suite of services," said Brad Nelson, HIPAA analyst at the UUHSC. "We found ZixCorp could deliver an offering that met all of our needs: a user friendly service; turnkey installation and industry interoperability. And the user education program (the ZixEvangelism Program(TM)) they provided us with is exceptional. We have recommended it to our business associates. We have received many positive comments about the secure e-messaging from our students, faculty and staff. One staff member commented that UUHSC secure e-messaging is the only part of HIPAA that has made her life easier."

ZixCorp currently offers an entire suite of e-messaging protection and management services ranging from content filtering, email encryption, anti-spam and anti-virus solutions offered in multiple configurations including on premise and hosted solutions, plus a number of additional offerings such as our assessment, monitoring and other professional services. "We believe we now have a very comprehensive suite of e-messaging protection services and have experienced very positive customer growth across the entire service portfolio," said Nutkis. "ZixCorp has demonstrated six consecutive quarters of growth in customer end-user orders, with the number of new customers added in the second quarter of 2003 being the largest ever, with 61 new healthcare customers in total."

Representative new healthcare customers in Q2 include:

Apical Health Solutions
Ascension Health
Atlanticare
Blue Cross Blue Shield of Montana
Blue Cross Blue Shield of Nebraska
Cole Vision
Columbus Regional Hospital
Community Memorial Hospital
Delta Dental Plan of Iowa
Detroit Medical Center
Excellus Health Plan, Inc.
Fairview Health Services
Froedtert and Community Health
HealthNow
Independent Health
Jewish Hospital Healthcare Services
Keystone Health Plan Central
Memorial Hermann Baptist
Riverside Health System
Select Medical Corporation
Seton Healthcare Network
St. Joseph's Hospital & Medical Center
TriHealth
Vanguard Health Systems

ZixCorp also added organizations from other sectors in this quarter, including:

Toyota Motor Credit
Shop Ko Stores, Inc.
Crawford and Company
RED CAPITAL GROUP

Some of ZixCorp's other current customers include:

Leading Payors

American Medical Security Group
Blue Cross Blue Shield of Arizona
Blue Cross Blue Shield of Kansas
Blue Cross of Northeastern Pennsylvania CIGNA Corporation Humana, Inc.
MVP Health Care QualCare, Inc.
PacifiCare Health Systems, Inc.
(In Addition, two of the top five payors)

Leading Regional Healthcare and Hospital Systems and Renowned Hospitals

CentraState Healthcare System
Children's Hospital & Health Center of San Diego
Delnor-Community Health System
Ellis Hospital
Freeman Health System
IASIS Healthcare
HealthEast Care System
Mississippi Baptist Health Systems
ProHealth Care
Robert Wood Johnson University Hospital
Rahway Hospital Salick Health Care
Solaris Health System
St. Agnes Healthcare
St. Barnabas Hospital
Texas Health Resources
Utah University Health Sciences Center

Many of ZixCorp's existing customers are expanding their use of ZixCorp services by upgrading their services. Blue Cross Blue Shield of Arizona (BCBS-AZ), is renewing all seats of ZixVPM(TM), adding the new monitoring and notification service, ZixVPM Alert Service(TM), and adding ZixPort. In addition, the company purchased a new ZixAuditor assessment to monitor its established email policies and determine compliance and effectiveness.

About Zix Corporation

Zix Corporation (ZixCorp(TM)) 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 and e-prescribing. ZixCorp helps organizations of any size to streamline operations, mitigate risks, and leverage the efficiencies of e-messaging. For more information, visit www.zixcorp.com.

CONTACT: ZixCorp Media/Investor Contact Whitney Gilliam, 214-515-7338 wgilliam@zixcorp.com

SOURCE: Zix Corporation