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ZixIt Corporation Announces Third Quarter 1999 Results

DALLAS, Nov. 11 /PRNewswire/ -- ZixIt Corporation (Nasdaq: ZIXI) announced today financial results for the third quarter and nine-month period ended September 30, 1999.

The company reported a third quarter net loss of $11,310,000, or $0.74 per share, and a nine-month period net loss of $26,095,000, or $1.71 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.

ZixIt Corporation is the developer and owner of 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 authorization system. For further investor information about ZixIt, visit the company's Web sit at www.zixit.com or contact investor relations at 972-702-7057.

                           ZIXIT CORPORATION
                     (A Development Stage Company)
            CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                 (In thousands, except per share data)
                              (Unaudited)

                               Three Months Ended   Nine Months Ended
                                  September 30,        September 30,
                                 1999      1998      1999         1998

    Research and development
     expenses                   $(5,112)   $ ---    $(19,177)     $ ---

    Operating costs and
     general corporate expenses  (7,310)    (523)    (10,585)     (3,350)
    Investment income               837      582       2,874       1,154
    Income (loss) from
     continuing operations
      before income taxes       (11,585)      59     (26,888)     (2,196)
    Income tax (provision) benefit   65      (54)        185         645
    Income (loss) from continuing
     operations                 (11,520)       5     (26,703)     (1,551)
    Discontinued operations         210    1,262         608       3,404

    Net income (loss)          $(11,310)  $1,267    $(26,095)     $1,853

    Basic and diluted earnings
     (loss) per common share:
     Continuing operations       $(0.75)  $  ---    $  (1.75)     $(0.10)
     Discontinued operations       0.01     0.08        0.04        0.21
     Net income (loss)           $(0.74)  $ 0.08    $  (1.71)     $ 0.11

    Weighted average shares
     outstanding                 15,282   14,903      15,219      16,134


                              ZIXIT CORPORATION
                        (A Development Stage Company)

                    CONDENSED CONSOLIDATED BALANCE SHEETS
                                (In thousands)
                                 (Unaudited)

                                                 September 30,  December 31,
                                                      1999         1998

    ASSETS
      Cash and marketable securities             $  55,708     $  81,221
      Due from sale of discontinued operations         ---         5,304
      Property and equipment, net                   19,059           158
      Other assets                                     775           215
                                                 $  75,542     $  86,898

    LIABILITIES AND STOCKHOLDERS' EQUITY
      Accounts payable and accrued expenses      $   7,098     $   1,574
      Liabilities related
       to discontinued operations                    1,360         3,875
      Stockholders' equity                          67,084        81,449

                                                 $  75,542     $  86,898

SOURCE  ZixIt Corporation