Zix Corporation CEO Provides Corporate Update for Q4 and Year-End 2008

DALLAS, Jan 08, 2009 /PRNewswire-FirstCall via COMTEX News Network/ -- Company's Email Encryption business continues to drive overall performance

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.

"We ended the year on a high note in our Email Encryption business, as we booked the highest orders for the year in the fourth quarter," said Spurr. "Our new first-year orders for Q4 2008 were $1.5 million, which was the second highest quarter for orders closed in the company's history. The ZixDirectory(TM), the community of users that forms the backbone of ZixCorp's Email Encryption Service, achieved a new milestone, topping 14 million members with an increased growth rate of 100,000 new addresses added each week. The company also successfully renewed its OEM contract with Google, which, when combined with its new partners in 2008 - MessageLabs (recently acquired by Symantec) and Code Green Networks - positions the business for a strong 2009."

"Driven by its Email Encryption business, ZixCorp overall completed another solid year, in which the company achieved significant milestones with positive cash flow in each quarter of 2008," continued Spurr. "Preliminary revenue estimates are that we will meet our guidance of $6.8 to $7.1 million for the fourth quarter, giving the company full-year 2008 estimated revenues of between $27.7 and $28 million. Our year-end unrestricted cash balance of $13.2 million exceeded our guidance of $13.1 million. This solid financial foundation will provide the platform for growth in each of our core markets. We believe the catalysts for this growth, which we have previously discussed - MIPPA legislation combined with continued payor interest in funding initial deployment costs in e-Prescribing and contributions from our OEM partners in Email Encryption - will lead to future success in these businesses."

About the company's e-Prescribing business, Spurr said, "Our PocketScript business exceeded the e-Prescribing deployment guidance of 150 for the fourth quarter with approximately 200 deployments. These deployments do not reflect a significant contribution from our recently signed contracts with BCBS Alabama, Aetna in New Jersey or UnitedHealthcare in Texas. We processed over 2 million e-scripts in the fourth quarter, bringing the full year total prescriptions processed to 8.6 million, an increase of more than 16 percent over 2007. With the new Medicare incentive period beginning this year and ongoing discussions we are holding with our payor customers, we believe that 2009 may be the year that we see acceleration in this market."

ZixCorp to Announce Fourth Quarter and Year-End 2008 Results on February 17

The company's fourth quarter and year-end 2008 operating results will be released after close of the U.S. financial markets on February 17, 2009. The company will hold a conference call to discuss this information on February 17 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 617-614-3926 or toll-free 800-299-7928 and entering access code 97361301. An audio replay of the conference will be available until February 24, by dialing 617-801-6888 or toll-free 888-286-8010, and entering the access code 27898401, and after that date via Webcast on the company's Web site.

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