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ZixIt Corporation Announces Results for Fourth Quarter and Full Year 1999

DALLAS, March 17 /PRNewswire/ -- ZixIt Corporation (Nasdaq: ZIXI) announced today results for the fourth quarter and full year ended December 31, 1999. ZixIt reported a net loss of $8.3 million, or $.54 per share, for the fourth quarter 1999, and a net loss of $34.4 million, or $2.25 per share, for the year.

David P. Cook, chairman and chief executive officer of ZixIt Corporation, commented, "In this past year we invested approximately $50 million in the development of technology and infrastructure for our ZixMail(TM) and ZixCharge(TM) systems. Initially, we employed a sizeable number of outside consultants, but now have made the transition to a predominantly in-house staff of approximately 83 full-time employees. As we begin the year 2000, we have approximately $40 million in cash and marketable securities with which to further develop and market our systems. We are looking forward to March 23, when we plan to launch ZixMail, the first of a line of products based on ZixIt's Digital Signature and encryption technology."

ZixIt Corporation is the provider of ZixMail(TM) -- a secure document delivery, private email, and message tracking service that enables users worldwide to easily send and receive encrypted and digitally signed communications using their existing email systems and addresses. ZixIt is also developing ZixCharge -- a shopping portal and Internet payment authorization system, and other products designed to enhance security, privacy, and convenience for the Internet. For further information, visit 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     Twelve Months Ended
                                       December 31,           December 31,
                                      1999     1998          1999      1998

    Revenues                       $      99  $  ---     $     99    $   ---
    Research and
     development expenses             (4,371)    ---      (23,548)       ---
    Operating costs and general
      corporate expenses              (6,111)    (670)    (16,696)    (4,022)
    Investment income                    659      802       3,533      1,956
    Income (loss) from continuing
      operations before income taxes  (9,724)     132     (36,612)    (2,066)
    Income taxes                         622      (69)        807        576
    Income (loss) from
      continuing operations           (9,102)      63     (35,805)    (1,490)
    Discontinued operations              845   24,350       1,453     27,756

    Net income (loss)              $  (8,257) $24,413    $(34,352)   $26,266

    Basic and diluted earnings
     (loss) per common share:
     Continuing operations         $   (0.60) $  0.00    $  (2.35)   $ (0.09)
     Discontinued operations            0.06     1.60        0.10       1.75
     Net income (loss)             $   (0.54) $  1.60    $  (2.25)   $  1.66

    Weighted average
      shares outstanding              15,319   15,252      15,244     15,836


                              ZIXIT CORPORATION
                        (A Development Stage Company)

                    CONDENSED CONSOLIDATED BALANCE SHEETS
                                (In thousands)
                                 (Unaudited)

                                                December 31,  December 31,
                                                     1999         1998

    ASSETS
      Cash and marketable securities             $  39,784    $  81,221
      Due from sale of discontinued operations         581        5,304
      Property and equipment, net                   21,006          158
      Other assets                                   5,152          215

                                                 $  66,523    $  86,898

    LIABILITIES AND STOCKHOLDERS' EQUITY
      Current liabilities                        $   3,629    $   5,449
      Stockholders' equity                          62,894       81,449

                                                 $  66,523    $  86,898

SOURCE ZixIt Corporation

CONTACT: Beverly V. Fuortes of ZixIt Corporation, 972-702-7057, or email, invest@zixit.com/