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Zix Corporation Selected by Mercy Health System of SE PA for Secure e-Messaging Services

Delaware Valley's Largest Catholic Healthcare System Purchases Multiple ZixCorp Services for Organization-Wide Email Security

DALLAS--(BUSINESS WIRE)--March 2, 2004-- Zix Corporation (ZixCorp(TM)), (Nasdaq:ZIXI), a global provider of e-messaging protection and transaction services, today announced that Mercy Health System of Southeastern Pennsylvania, Delaware Valley's largest Catholic healthcare system and a member of Catholic Health East, has selected ZixCorp as its email security solution. The organization, based in Conshohocken, Pa., joins many other area healthcare providers that have selected ZixCorp to meet the security regulations of the Health Insurance Portability and Accountability Act of 1996 (HIPAA) including Blue Cross of Northeastern Pa., Select Medical Corporation, and Keystone Health Plan Central.

Mercy Health System purchased ZixAuditor(R), ZixPort(TM), ZixVPM(R) (Virtual Private Messenger) services for Mercy Home Health Services, and its five hospitals: Mercy Hospital of Philadelphia; Mercy Fitzgerald Hospital; Mercy Suburban Hospital; Nazareth Hospital and St. Agnes Medical Center. The company utilized the ZixAuditor email assessment service to identify email security vulnerabilities and develop its email security policies and will conduct another assessment after deployment to monitor ongoing HIPAA compliance. ZixPort will provide custom branding and encrypted messaging functionality for Mercy Health System and its partners. ZixVPM will enforce email policies system-wide to ensure secure handling of confidential information including a pre-configured HIPAA lexicon that detects Protected Health Information (PHI).

"Protecting patient information is a top priority for us," said Nancy Oetinger, chief compliance and privacy officer for Mercy Health System. "ZixCorp's clear focus and understanding of healthcare security needs, and the fact that its services required no up-front capital or additional internal resources made them our top choice. The tremendous support we've received has confirmed that we made the right decision for our secure e-messaging provider."

"We spent two years working toward HIPAA compliance and we identified PHI in emails as an important risk factor. ZixAuditor helped us clearly identify our email patterns so that we could implement the right solution. After thoroughly examining all our options, ZixCorp was best able to meet our needs and we'll rely upon ZixAuditor assessment to ensure our continued compliance," said Steve Czapla, chief information officer for Mercy Health System.

Mercy Health System will also take advantage of the ZixEvangelism(TM) Program, which provides the organization with the tools it needs to communicate company email security policies to 6,500 employees and additional partners. The program provides posters, letters, brochures, and other marketing materials to assist in education and involvement in securing PHI. The organization's 1,500 physicians will also participate in the nonprofit HealthyEmail program, an initiative that offers free two-year ZixMail(TM) desktop encryption services to all U.S. physicians.

"As ZixCorp strengthens its dominance in the Northeast in general and Pennsylvania in particular, we're capturing influential healthcare systems that other hospitals look to for guidance in purchasing decisions," said Dennis Heathcote, vice president of sales and marketing for ZixCorp. "As part of Catholic Health East, Mercy Health System's decision to choose ZixCorp as its secure e-messaging provider has the potential to affect the decisions of dozens of healthcare systems on the East Coast."

About Mercy Health System

Mercy Health System of Southeastern Pennsylvania, a member of Catholic Health East, is a diverse, integrated system providing comprehensive healthcare services to people in all stages of life. Its mission is to be a partner in the healing ministry of the Sisters of Mercy, Hope Ministries and the Catholic Church by delivering quality, community-based healthcare services, and addressing the diverse factors that impact the healthcare needs of the whole person, with a special concern for the poor and disadvantaged. It is the largest Catholic healthcare system serving the Delaware Valley. Mercy Health System provides services through Mercy Fitzgerald Hospital, Mercy Hospital of Philadelphia, Mercy Suburban Hospital, Nazareth Hospital, St. Agnes Medical Center, and Mercy Home Health Services. In addition, Mercy Health System is a full partner in the Keystone Mercy Health Plan. For more information, visit www.mercyhealth.org.

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: Zix Corporation, Dallas
Media:
Amy Liakos, 214-515-7338
aliakos@zixcorp.com
or
Investor
: Brad Almond, 214-515-7357
balmond@zixcorp.com

SOURCE: Zix Corporation