Wizzard Software Announces 2009 Q1 Financial Results and Shareholder Conference Call

Business Wire, May 15, 2009

PITTSBURGH -- Wizzard Software (NYSE Amex: WZE) announced first quarter 2009 financial results today recording revenues of $1,178,573, a 29% decrease from revenues of $1,668,478 in the first quarter of 2008. The decrease for the first quarter of 2009 reflects a decrease in revenue over all business segments due to the economic recession, primarily due to a decrease in our staffing revenues within our healthcare subsidiary.

In the first quarter ended March 31, 2009, operating expenses totaled $1,504,635, which was a 44% decrease from operating expenses of $2,688,581 in the first quarter of 2008.

Management’s efforts over the last two quarters to streamline operations, control spending, decrease the use of consultants and re-structure certain financial instruments reduced our cash spending by approximately $600,000 per quarter.

Wizzard's net loss available to common shareholders was $1,317,753, or $0.03 per share, in the quarter ended March 31, 2009. This represents a 52% decrease from our net loss of $2,751,830, or $0.06 per share, in the first quarter of 2008.

“The first quarter of 2009 was a challenging quarter across all segments of our business,” says Chris Spencer, Wizzard CEO. “We attribute this directly to the severe global recession and expect results to improve as economic conditions improve. We have significantly reduced expenses achieving our goal of cutting $600,000 in cash based expenses per quarter, launched new products in our software business, see continued strength in the home health portion of our healthcare subsidiary, and experienced significant network growth and increased advertising inventory fill in our media business. We also began a new monetization effort for our podcasting business through the use of iPhone Apps which we believe could significantly increase income for our podcast publishers in the 3rd and 4th quarters of this year.”

Wizzard’s Media business saw network download requests of 380,124,773 vs. approximately 275,000,000 download requests in the first quarter of 2008, an increase of 38%. Wizzard's publishing platform grew by over 3,000 new podcast shows in the first quarter of 2009 versus 1,268 in the first quarter of 2008, reaching 20,000 shows for the first time. The audience consuming podcasts from the Wizzard Network grew from 15 million monthly unique audience members at the end of 2008 to 18.3 million unique over the course of the first quarter of 2009, an increase of 3.3 million monthly uniques in the first quarter. While experiencing lower CPM based ad sales due to decreased advertising spending by businesses worldwide, advertising impressions served grew from 8.8 million in the fourth quarter of 2008 to 9.4 million in the first quarter of 2009.

The previously mentioned numbers and statements are highlights from Wizzard’s 2009 First Quarter 10Q filing. For a complete and detailed financial description of Wizzard Software Corporation, please visit www.sec.gov, where the 2009 First Quarter 10Q and all of Wizzard’s SEC filings can be found.

Wizzard will discuss its first quarter 2009 10Q filing during its regularly scheduled conference call on May 19, 2009, at 11:00 a.m. ET. The following is the call-in information: 877-407-0782 (U.S. callers); 201-689-8567 (international callers). The call will be broadcast simultaneously and archived on the Internet at: http://www.investorcalendar.com/IC/CEPage.asp?ID=145079 Questions for consideration for the shareholder call can be emailed to ir@wizzardsoftware.com prior to 3:00 p.m. ET on May 18, 2009.

About Wizzard Software

Founded in 1996, Wizzard Software has become a leader in the speech technology application market. Wizzard architects solutions to business problems using its expertise in consulting, speech development tools and building speech based applications for the Desktop and Internet. Wizzard has achieved global recognition because of its expertise with voice communication whether it is via computer or telephone. Wizzard’s successes have led to expanding speech technology opportunities in government and commercial sectors, including several healthcare industry products and services. Most recently, Wizzard Software entered the exciting new realm of digital media and is already the world’s largest distributor of digital media via RSS (podcasts). For more information, please visit www.wizzardsoftware.com and www.wizzard.tv.

Legal Notice

Legal Notice Regarding Forward-Looking Statements: "Forward-looking Statements" as defined in the Private Securities litigation Reform Act of 1995 may be included in this news release. These statements relate to future events or our future financial performance. These statements are only predictions and may differ materially from actual future results or events. We disclaim any intention or obligation to revise any forward-looking statements whether as a result of new information, future developments or otherwise. There are important risk factors that could cause actual results to differ from those contained in forward-looking statements, including, but not limited to risks associated with changes in general economic and business conditions, actions of our competitors, the extent to which we are able to develop new services and markets for our services, the time and expense involved in such development activities, the level of demand and market acceptance of our services, changes in our business strategies and acts of terror against the United States.