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Healthcare IT and Biotechnology News Release
Date of Publication: Monday, February 13, 2006

Zix Corporation Receives Signed Letter of Intent as Sole Vendor for New e-Prescribing Program

Health Insurer to Make PocketScript(R) Available to 500 Initial Physicians
DALLAS -- Zix Corporation (ZixCorp(R)), (Nasdaq:ZIXI), a global provider of email encryption and e-prescribing services, today announced it has received a signed letter of intent (LOI) from a Blue Cross organization making it the sole provider of an e-prescribing program that will support ZixCorp's PocketScript application to an initial minimum of 500 physicians.


"We are pleased to have been selected as the sole supplier in yet another statewide payor-sponsored initiative to bring the benefits of e-prescribing to the patient-physician relationship," said Rick Spurr, chief executive officer for ZixCorp. "This selection provides further evidence of the market acceptance of the payor-sponsored model specifically and the growing market adoption of e-prescribing in general. We believe this fifth win in seven months provides validation of our continued investment in this promising area."

Payor Program Update

"I would like to also provide an overview to overall payor-sponsored program momentum. To date in 2006, ZixCorp has announced its selection in three new programs: Highmark and two official selections that are currently in final contract negotiations, including the one announced in this press release and the one cited in the CEO update provided on January 5. These three wins in early 2006 are three of the four late-stage payor discussions I mentioned in the last earnings conference call," said Spurr. "These three wins, combined with ZixCorp's involvement in the eRx Collaborative in Massachusetts, Aetna and Independence Blue Cross bring the total to six major payor-sponsored e-prescribing initiatives involving ZixCorp's PocketScript service."

Recruiting and Deployment Update

Spurr continued, "We previously announced that we completed all recruiting for the Independence Blue Cross and Aetna pilots in the fourth quarter of 2006. As a further update, we also deployed 815 physicians in the fourth quarter of 2005, again meeting our deployment guidance of between 750 to 850. In the first quarter of 2006, we anticipate deploying 800 to 900 additional users. ZixCorp will also complete the deployments of the vast majority of the Independence Blue Cross and Aetna-sponsored prescribers in the current contracts. In our scheduled earnings call for the fourth quarter of 2005 on February 23, we will provide additional updates and discuss how this series of wins begins to lead us toward breakeven and profitability."

PocketScript Details

PocketScript enables physicians to write and generate electronic prescriptions directly to pharmacies through either a wireless handheld PDA or a secure Web site. The application includes real-time eligibility and formulary information. It also includes access to a drug reference guide, drug-to-drug and drug-to-allergy information, and drug history data.



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Last Updated: 24 November 2007.