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Zix Corporation's CEO Update Announces Achievement of Positive Cash Flow

Company achieves milestone of first-ever quarter with positive cash flow from operations

DALLAS, April 7, 2008 /PRNewswire-FirstCall/ -- Zix Corporation (ZixCorp(R)), (Nasdaq: ZIXI), the leader in hosted services for email encryption and e-prescribing, today offered a corporate update by its chief executive officer, Rick Spurr.

"ZixCorp attained its goal of achieving positive cash flow from operations in Q1 2008, which positions the company for strong, continued growth," said Spurr. "Preliminary revenue estimates are that we will meet or exceed our guidance of $6.7 to $7.0 million for the first quarter. Per our guidance, the first quarter ending cash balance of $12.6 million exceeded our year-end 2007 balance of $12.3 million. The positive cash flow for the first quarter 2008 of approximately $300,000 includes proceeds of approximately $140,000 from the exercise of stock options and compares with the $332,000 cash burn for the first quarter of last year. We believe these results demonstrate the successful growth of our subscription-based model and the positive operational improvements we have implemented. We remain confident in our ability to maintain positive cash flow at least through the first six months of this year. And, as stated previously, we assert this confidence in the face of a potential economic recession, again because of the recurring nature of our revenue and cash streams in our subscription model where almost 75 percent of our forecasted cash comes from existing contracts or renewals. Having achieved this milestone, we will remain vigilant in managing our costs while placing additional emphasis on growth going forward."

"We had a good quarter in each of our core businesses -- Email Encryption and e-Prescribing," continued Spurr. "In our Email Encryption business, we had the second highest quarter for new first-year orders in the company's history with an estimated $1.4 million and estimated total orders of $8.7 million, which, at over 26 percent more than any previous quarter, is by far a record for this business. We saw continued demand for our service model in both healthcare and financial services, and a meaningful contribution from our channel partners."

Of the company's e-prescribing business, Spurr said, "Our PocketScript business continues to maintain solid quarterly performance. We met our guidance on e-prescribing deployments with 233 for the quarter and ZixCorp processed more than 2.2 million e-scripts, compared with 1.76 million processed in Q1 2007. Our payor-sponsored programs continue to experience success as evidenced by two first quarter program expansions. In July 2006, ZixCorp began an e-prescribing pilot with L.A. Care, who recently entered into an agreement with us to renew the user license for physicians meeting certain metrics and entering their second year of PocketScript usage. Additionally, L.A. Care recently announced the Health I.T. Incentive Program that will reward physicians for adoption and sustained utilization of e-Prescribing technology, reimbursing physicians up to $3,000 for e-prescribing. And finally, the country's most successful e-prescribing program, the eRx Collaborative, recently entered into a new agreement with ZixCorp that includes expansion, incentives and renewals with ZixCorp for use of its PocketScript e-prescribing service. The agreements include an additional 100 physician sponsorship and renewals for previously deployed physicians who continue to demonstrate strong e-prescribing results as defined by the Collaborative."

ZixCorp to Announce First Quarter 2008 Results on May 1

The Company's first quarter 2008 operating results will be released after close of the U.S. financial markets on May 1, 2008. The Company will hold a conference call to discuss this information on May 1 at 5:00 p.m. ET.

A live Webcast of the conference call will be available on the investor relations portion of ZixCorp's Web site at http://investor.zixcorp.com. Alternatively, participants can listen to the conference call by dialing 617-614-4923 or toll-free 800-320-2978 and entering access code 22556042. An audio replay of the conference will be available until May 8, by dialing 617-801-6888 or toll-free 888-286-8010, and entering the access code 88486861, and after that date via Webcast on the Company's Web site.

About Zix Corporation

ZixCorp is the leading provider of easy-to-use-and-deploy email encryption and e-prescribing services that Connect entities with their customers and partners to Protect and Deliver sensitive information in the healthcare, finance, insurance and government industries. ZixCorp's hosted Email Encryption Service provides an easy and cost-effective way to ensure customer privacy and regulatory compliance for corporate email. Its PocketScript(R) e-prescribing service reduces costs and improves patient care by automating the prescription process between payors, doctors, and pharmacies. For more information, visit http://www.zixcorp.com.

Safe Harbor Statement for ZixCorp

The following is a "Safe Harbor" statement under the Private Securities Litigation Reform Act of 1995. The forward-looking statements contained in this release are not a guarantee of future performance and involve risks and uncertainties. Actual results may differ materially from those projected in the forward-looking statements. These risks and uncertainties include, but are not limited to, the following: the Company's continued operating losses and use of cash resources in its PocketScript e-Prescription business; the Company's ability to achieve broad market acceptance for the Company's products and services, including the Company's ability to enter into new sponsorship agreements for the e-prescribing services offered by its PocketScript, Inc. subsidiary and the Company's ability to continue realizing acceptance of its Email Encryption business in its core markets of healthcare and financial and to achieve market acceptance of its Email Encryption business in other markets; the Company's ability to maintain existing and generate other revenue opportunities, including fees for scripts written, from its PocketScript e-Prescription business; the Company's ability to establish and maintain strategic relationships to gain customers and grow revenues, particularly in its Email Encryption business; the expected increase in competition in the Company's Email Encryption and e-Prescription businesses; and the Company's ability to successfully and timely introduce new Email Encryption and e-Prescription products and services or related products and services and implement technological changes. Further details pertaining to such risks and uncertainties may be found in the Company's public filings with the SEC.

SOURCE Zix Corporation ,/p>

CONTACT: Public Relations, Farrah Corley, +1-214-370-2175, publicrelations@zixcorp.com, or Investor Relations, Peter Wilensky, +1-214-515-7357, invest@zixcorp.com, both of Zix Corporation