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Zix Corporation is Selected by Blue Plans in New York for Secure e-Messaging and Protection Services; Two Blues Are Added to ZixCorp's Growing Healthcare Client Roster in New York

DALLAS--(BUSINESS WIRE)--Aug. 13, 2003--Zix Corporation (ZixCorp(TM)), (Nasdaq:ZIXI), a global provider of e-messaging protection and transaction services, today announced that BlueShield of Northeastern New York and BlueCross BlueShield of Western New York have chosen ZixCorp for their e-messaging protection needs. The two Blue Plans, representing 780,000 members in 53 New York counties, selected ZixCorp to reduce their risk of violating the email security regulations of the Health Insurance Portability and Accountability Act of 1996 (HIPAA), to streamline their email policies, and to align themselves with industry best practices.

The Blue Plans purchased ZixVPM(R) (Zix Virtual Private Messenger) with ZixCorp's HIPAA content scanning lexicon and a customized lexicon that ensures privacy of emails including company-specific information such as member and policy numbers. ZixVPM will provide an enterprise-wide solution to secure communication between its partners and customers, even when recipients have no encryption software of their own. The Blue Plans also purchased ZixPort(TM) to brand the e-messaging Web portals for both of its entities.

"I am very excited to finally have an email encryption product available to all workforce members," says Nancy L. Schoellkopf, corporate HIPAA privacy official for the two Blue Plans. "We have always held our members' information to the utmost confidentiality. Now, with the HIPAA Privacy Regulations in effect and the Security Regulations trailing closely behind, we are going that extra mile to protect our members' health information. ZixCorp provided us with the best option fulfilling the requirements and expectations of an efficient, secure product."

Dennis Healthcote, vice president of marketing and products for ZixCorp said, "We are proud to add additional Blue Plans to our customer list. It was essential to them that compliance with industry regulations not come at the expense of extensive integration with the existing infrastructure or complicated steps for end-users, which is why they chose ZixCorp. We are becoming well known throughout the healthcare industry for our ease of installation, ease of use and superior customer service."

The company joins other prominent New York healthcare organizations that have chosen ZixCorp for their e-messaging protection needs including Excellus BlueCross BlueShield, MVP Health Plan, Davis Vision, Ellis Hospital, MultiPlan, and Independent Health.

"These new customers further confirm our leadership position with healthcare organizations in the Northeast and among Blue Plans throughout the nation," says Wael Mohamed, vice president of global sales and distribution. "Not only are companies recognizing our greater interoperability, send-to-anyone capability, and quick installation process, but they also recognize our flexibility and care in meeting customers' specialized needs. We were easily able to customize the branding for its two Blue Plans, as well as create a lexicon that recognizes and automatically encrypts data that met its specific email security policies."

About BlueCross BlueShield of Western New York and BlueShield of Northeastern New York

BlueCross BlueShield of Western New York and BlueShield of Northeastern New York are divisions of one of New York State's leading healthcare companies, providing quality healthcare and innovative solutions for more than 780,000 members in Upstate New York. In 2002, company revenues grew to $1.5 billion. The company has attained COPC 2000 certification for all its call centers and claims processing departments, and both Blue plans have secured the designation of Excellent from the NCQA. In 2003, BlueCross BlueShield of Western New York was named as one of the Top 25 HMOs by Managed Healthcare Executive because of its high member satisfaction ratings.

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