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Zix Corporation CEO Provides Corporate Update for Q4 and Year-End 2008
Date:1/8/2009

Company's Email Encryption business continues to drive overall performance

DALLAS, Jan. 8 /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.

"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
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