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CustomTracks Corporation Announces Second Quarter Results and Opening Date for ZixCharge(TM) Informational Web Site

DALLAS, Aug. 5 /PRNewswire/ -- CustomTracks Corporation (Nasdaq: CUST) announced today financial results for the second quarter and six-month period ended June 30, 1999.

The company reported a second quarter net loss of $12,370,000, or $0.81 per share, and a six-month period net loss of $14,785,000, or $0.97 per share. There are no comparable quarterly results for 1998, as the company completed the sale of all its previous revenue-generating businesses in November 1998.

The company also announced that its ZixCharge(TM) informational Web site will be available by August 16, 1999, at www.ZixCharge.com.

CustomTracks Corporation is the developer and owner of the ZixIt(TM) Digital Signature and encryption technology. Products currently under development include: ZixMail(TM), a secure Internet-messaging system; and ZixCharge(TM), an Internet transaction system. The company plans to change its name to ZixIt Corporation, pending shareholder approval at the annual meeting, to be held September 14, 1999, in Dallas. For further investor information about CustomTracks, visit the company's Web site at www.customtracks.com or contact investor relations at 972-702-7057.

                           CUSTOMTRACKS CORPORATION
                        (A Development Stage Company)

               CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                    (In thousands, except per share data)
                                 (Unaudited)

                            Three Months Ended           Six Months Ended
                            June 30,    June 30,      June 30,     June 30,
                             1999         1998         1999          1998

    Research and
     development
     expenses            $ (11,334)     $    ---    $ (14,065)     $    ---
    Operating costs and
     general corporate
     expenses               (2,500)       (1,183)      (3,275)       (2,827)
    Investment income          976           310        2,037           572
    Loss from continuing
     operations before
     income taxes          (12,858)         (873)     (15,303)       (2,255)
    Income tax benefit          90           263          120           699
    Loss from continuing
     operations            (12,768)         (610)     (15,183)       (1,556)
    Discontinued operations    398           837          398         2,142

    Net income (loss)    $ (12,370)     $    227    $ (14,785)     $    586

    Basic and diluted
     earnings (loss)
     per common share:
      Continuing
       operations        $   (0.84)     $  (0.04)   $   (1.00)     $  (0.10)
      Discontinued
       operations             0.03          0.05         0.03          0.13

      Net income (loss)  $   (0.81)     $   0.01    $   (0.97)     $   0.03

    Weighted average
     shares outstanding     15,249        16,572       15,187        16,759

                           CUSTOMTRACKS CORPORATION
                        (A Development Stage Company)

                    CONDENSED CONSOLIDATED BALANCE SHEETS
                                (In thousands)
                                 (Unaudited)

                                                 June 30,         December 31,
                                                   1999               1998
    ASSETS
      Cash and marketable securities            $  68,429          $  81,221
      Due from sale of discontinued operations        ---              5,304
      Property and equipment, net                  13,241                158
      Other assets                                    627                215
                                                $  82,297          $  86,898

    LIABILITIES AND STOCKHOLDERS' EQUITY
    Accounts payable and accrued expenses       $   5,097          $   1,574
    Liabilities related to discontinued
     operations                                     1,460              3,875
    Stockholders' equity                           75,740             81,449
                                                $  82,297          $  86,898

SOURCE  CustomTracks Corporation