Zix Corporation Inks Deal with QualCare to Provide Support in Moving Towards HIPAA Compliance; Largest PPO in New Jersey to Rely on ZixCorp for Secure e-Messaging

Business Wire, Sept 17, 2002

Business Editors & High-Tech/Health/Medical Writers

DALLAS--(BUSINESS WIRE)--Sept. 17, 2002

Zix Corporation (ZixCorp(TM)), (Nasdaq:ZIXI), a global provider of secure e-messaging services, today expanded its presence in New Jersey by adding to its client roster QualCare, Inc., the largest Preferred Provider Organization (PPO) in the state. The deal will provide QualCare with secure e-messaging across its entire customer and partner network including hospitals, physicians, plan sponsors and members, facilitating the company's compliance with the Health Insurance Portability and Accountability Act of 1996 (HIPAA).

"Staying ahead of the HIPAA mandates is a primary concern for us, but the management at QualCare also believes that it is simply our responsibility to protect the information of our members," said QualCare president and CEO Annette Catino. "The fact that ZixCorp met all of our requirements, has an extensive knowledge of the challenges facing the healthcare industry and provided a simple, turnkey solution made this an easy choice."

QualCare has purchased 1,000 seats of ZixVPM(TM), ZixCorp's networked-based encryption solution, to securely email confidential business and patient information with its external constituents, including more than 16,000 physicians, 82 hospitals and other providers in its network. The insurer has also obtained 200 licenses of ZixMail(TM), ZixCorp's secure desktop email encryption solution, to fully enable employers, subscribers and providers - including Saint Barnabas Health Care System and Hackensack University Medical Center - that routinely communicate confidential data to QualCare.

External constituents of QualCare who do not receive ZixMail licenses and who do not already have ZixMail or ZixVPM will communicate with QualCare through the ZixMessage Center, ZixCorp's Web-based message center.

"With the deadline for enforcement of the HIPAA regulations imminent, secure e-messaging is becoming top-of-mind with healthcare organizations. We offer these organizations a complete solution," said Daniel Nutkis, vice president, strategy and products at ZixCorp. "We're excited to work with QualCare, and pleased to see our continued progress in the state of New Jersey where we have also recently implemented secure e-messaging for Solaris Health Systems and CentraState Healthcare System."

About QualCare, Inc.

QualCare, Inc. is the largest full-service, provider-sponsored managed care organization owned and operated in the state of New Jersey. It is majority owned by 15 hospital and physician organizations, and serves 450,000 residents through more than 200 healthcare plans.

About Zix Corporation

Zix Corporation (ZixCorp(TM)) is a global provider of comprehensive, easy-to-deploy secure e-messaging solutions and services. From assessment and verification tools, to desktop and enterprise services, ZixCorp's cost-effective solutions enable organizations to leverage email as a business-critical application to securely exchange sensitive and highly confidential information. Additional information about ZixCorp can be found at www.zixcorp.com.

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