Lerach Coughlin Stoia Geller Rudman & Robbins LLP Files Class Action Suit against Zix Corporation

Business Wire, Sept 3, 2004

SAN DIEGO -- Lerach Coughlin Stoia Geller Rudman & Robbins LLP ("Lerach Coughlin") (http://www.lerachlaw.com/cases/zix/) today announced that a class action has been commenced in the United States District Court for the Northern District of Texas on behalf of purchasers of Zix Corporation ("Zix") (NASDAQ:ZIXI) common stock during the period between October 30, 2003 and May 4, 2004 (the "Class Period").

E[acute accent]If you wish to serve as lead plaintiff, you must move the Court no later than 60 days from today. If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact plaintiff's counsel, William Lerach or Darren Robbins of Lerach Coughlin at 800-449-4900 or via e-mail at wsl@lerachlaw.com. If you are a member of this class, you can view a copy of the complaint as filed or join this class action online at http://www.lerachlaw.com/cases/zix/. Any member of the purported class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. E[acute accent]The complaint charges Zix and certain of its officers and directors with violations of the Securities Exchange Act of 1934. Zix is a global provider of e-messaging protection and transaction services. E[acute accent]The complaint alleges that during the Class Period, defendants disseminated materially false and misleading statements regarding the Company's business and prospects. The defendants concealed from the investing public the following facts during the Class Period: (a) the Company was experiencing sluggish doctor adoption to e-prescribing; (b) the Company's claim that it would achieve 1,000 deployed active doctors by the end of Q4 2003 was false and misleading because physicians would be required to reconfigure their patient data, obtain wireless coverage and implement a wireless LAN, which were severely undercutting physician acceptance and deployment; (c) the Company's claim it had 4,000 deployments already on order was false because, at the time of claim, the physicians' sites had not even been surveyed to evaluate wireless/LAN needs, all of which would drastically impact not only the timing of these "ordered" deployments but also whether these so-called ordered deployments would ever be truthfully ordered and deployed; and (d) new offerings from its Elron acquisition were delayed as a result of integration problems. As a result of the defendants' false statements, Zix's stock traded at inflated levels during the Class Period, increasing to as high as $17.33 on April 12, 2004, whereby the Company's top officers and directors sold more than $4.6 million worth of their own shares and raised an additional $10 million through the conversion of warrants. E[acute accent]On May 4, 2004, the Company announced its results for Q1 2004, including larger loss than market expectations. On this news, the Company's shares were sent into a freefall, tumbling 50% in the following trading days to below $7 per share. E[acute accent]Plaintiff seeks to recover damages on behalf of all purchasers of Zix common stock during the Class Period (the "Class"). The plaintiff is represented by Lerach Coughlin, which has expertise in prosecuting investor class actions and extensive experience in actions involving financial fraud. E[acute accent]Lerach Coughlin, a 140-lawyer firm with offices in San Diego, San Francisco, Los Angeles, New York, Boca Raton, Washington, D.C., Houston, Philadelphia and Seattle, is active in major litigations pending in federal and state courts throughout the United States and has taken a leading role in many important actions on behalf of defrauded investors, consumers, and companies, as well as victims of human rights violations. Lerach Coughlin lawyers have been responsible for more than $20 billion in aggregate recoveries. The Lerach Coughlin Web site (http://www.lerachlaw.com) has more information about the firm.