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ZixIt Corporation Announces Results for First Quarter 2000

DALLAS--(BUSINESS WIRE)--May 9, 2000--ZixIt Corporation (Nasdaq:ZIXI) announced today results for the first quarter ended March 31, 2000. ZixIt reported a net loss of $11,136,000, or $0.72 per share, compared to a net loss of $2,415,000, or $0.16, per share for the first quarter of 1999.

David P. Cook, chairman and chief executive officer of ZixIt Corporation, commented, "This has been a significant quarter for us. Tremendous progress has been made, marked by the launch of our first commercial service, ZixMail(TM). Our attention is now focused on marketing alliances and bringing to market new product extensions that have the potential to vastly increase the applications for our service, and as a result, our user base."

ZixIt Corporation provides products and services that enhance security, privacy, and convenience on the Internet. ZixIt's flagship product, ZixMail(TM), is 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(TM) -- a shopping portal and Internet payment authorization system. 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
                                    -------------------------------

                                    March 31, 2000    March 31, 1999
                                    ---------------   ---------------

Revenues                             $        96       $        --
Research and development expenses         (2,211)           (2,731)
Operating costs and general
 corporate expenses                       (9,595)             (775)
Investment income                            574             1,061
                                    ---------------   ---------------

Loss before income taxes                 (11,136)           (2,445)

Income tax benefit                            --                30
                                    ---------------   ---------------

Net loss                             $   (11,136)      $    (2,415)
                                    ===============   ===============

Basic and diluted loss per
 common share                        $     (0.72)      $     (0.16)
                                    ===============   ===============

Weighted average shares outstanding       15,436            15,124
                                    ===============   ===============


                           ZIXIT CORPORATION
                     (A Development Stage Company)

                 CONDENSED CONSOLIDATED BALANCE SHEETS
                            (In thousands)
                              (Unaudited)

                                    March 31, 2000   December 31, 1999
                                    ---------------   ---------------
ASSETS
  Cash and marketable securities     $    36,252       $    39,784
  Due from sale of discontinued
   operations                                 --               581
  Property and equipment, net             20,645            21,006
  Other assets                             8,502             5,152
                                    ---------------   ---------------

                                     $    65,399       $    66,523
                                    ===============   ===============

LIABILITIES AND STOCKHOLDERS' EQUITY
  Current liabilities                $     3,492       $     3,629
  Stockholders' equity                    61,907            62,894
                                    ---------------   ---------------

                                     $    65,399       $    66,523
                                    ===============   ===============



    CONTACT: ZixIt Corporation, Dallas
             Beverly V. Fuortes, 972/702-7057
             invest@zixit.com
             or
             Citigate Dewe Rogerson
             Cindy Lawrence, 212/419-8343