Zix Delivers HIPAA-Compliant Email Encryption

PRESS RELEASE

DALLAS, Nov. 10 /PRNewswire-FirstCall/ --Zix Corporation (ZixCorp½), (Nasdaq: ZIXI), the leader in email encryption services, today announced that Sten-Tel, a leading national medical, legal, law enforcement and insurance transcription company, has signed a three-year contract for the company's email encryption service.

The sweeping changes to the Health Information Portability Accountability Act (HIPAA) introduced via the Health Information Technology for Economic and Clinical Health (HITECH) Act earlier this year have generated enormous challenges for the healthcare industry and their business associate partners. The challenges arise from provisions that extend compliance responsibility for the HIPAA Privacy and Security Rules to the business associate category of companies that provide services to the healthcare industry. The new provisions that went into effect in September 2009 obligate these business associates, by law, to follow HIPAA.

The updated act, coupled with anticipated stronger enforcement, has amplified the risks for business associates substantially. These changes have particularly strong ramifications for the medical transcription industry since electronic Personal Health Information (ePHI) is at the core of their industry. Medical transcription vendors are business associates that offer dictation and translation services to medical professionals, clearly a market requiring secure management of electronic PHI.

Sten-Tel anticipated the changes to HIPAA and chose to implement ZixCorp's email encryption service for all sensitive email communication. "Sten-Tel's swift response to the new changes to HIPAA through HITECH demonstrates their understanding of the significance of this new environment," said Rick Spurr, Chief Executive Officer for ZixCorp. "Sten-Tel's actions signify a strong commitment to safeguarding patient privacy. We welcome Sten-Tel into the ZixCorp community and are pleased to see the business associate market recognize our healthcare leadership."

ZixCorp delivers HIPAA compliant email encryption services for seamless external communication with Sten-Tel members and business partners. As a ZixCorp customer, Sten-Tel users benefit from access to ZixDirectory(TM), the largest email encryption community in the world with over 18 million members. ZixDirectory plugs Sten-Tel into the community to send and receive secure email through a SaaS architecture that delivers seamless key management in the cloud.

"ZixCorp's email encryption service was up and running in a matter of hours; it's provided us with confidence in knowing we're compliant with the new changes to HIPAA," said

George Catuogno, President of Sten-Tel.

About Sten-Tel

Transcription service is more than words on paper. It's about managing information, the latest technology, quality and reliability, thus forming a true client-vendor partnership. Through our experience in business since 1966, we at Sten-Tel take the time to get to know you and your business so we can deliver the solution you deserve and should expect. You can feel absolutely confident with Sten-Tel. We are HIPAA Compliant, SysTrust Certified, and can now offer both encrypted email and encrypted cloud storage services to our clients.

In the end, it's about having people with knowledge, experience, and commitment to developing meaningful business relationships and delivering excellent customer service that makes our business great. You can count on Sten-Tel to power your business.

About Zix Corporation

Zix Corporation is the leader in email encryption and payor sponsored e-prescribing services. ZixCorp offers the simplicity of Software as a Service with the convenience of customizable encryption policies. ZixCorp provides automated key management "in the cloud" for all its customers, resulting in a scalable, reliable, easy-to-use and simple-to-administer service. ZixDirectory is the largest email encryption directory in the world enabling seamless and secure communication among communities of interest. ZixDirectory connects over