855612--3/4/2009--ZIX

related topics

{product, market, service}

{system, service, information}

{regulation, government, change}

{tax, income, asset}

{stock, price, share}

{property, intellectual, protect}

{interest, director, officer}

{personnel, key, retain}

We have incurred significant operating losses in previous years and our PocketScript e-Prescribing Service continues to use significant amounts of cash. The market may not broadly accept our Email Encryption and PocketScript e-Prescribing Services, which would prevent us from operating profitably. End-users of our PocketScript Service may not continue to use the service Failure to enter into additional or to maintain existing sponsorship agreements for our PocketScript e-Prescribing Service and generate other revenue sources from our PocketScript Service could harm our business. Physicians and other healthcare providers may fail to adopt our PocketScript Service. End-users of our PocketScript Service may not continue to use the service. The market may not broadly accept our Email Encryption and PocketScript e-Prescribing Services, which would prevent us from operating profitably Physicians and other healthcare providers may fail to adopt our PocketScript Service Failure to significantly increase our base of PocketScript users or obtain significant prescription transaction fees, or other fees may result in failure to achieve the critical mass of physicians and revenue to build a successful business. Competition in our businesses is expected to increase, which could impair our prospects and cause our business to fail. Our inability to successfully and timely develop and introduce new Email Encryption and e-Prescribing Services and related services and to implement technological changes could harm our business. Future asset impairments could affect our financial results. Capacity limits on our technology and network hardware and software may be difficult to project, and we may not be able to expand and/or upgrade our systems to meet increased use, which would result in reduced revenues. Security interruptions to our data centers could disrupt our business, and any security breaches could expose us to liability and negatively impact customer demand for our solutions and services. We may have to defend our rights in intellectual property that we use in our services, which could be disruptive and expensive to our business. Defects or errors in our services could harm our business. Public key cryptography technology is subject to risks. We depend on key personnel. We rely on third parties. We could be affected by government regulation. Our stock price may be volatile. We have a significant amount of stock options and warrants outstanding and may issue additional equity securities in the future. Exercise of the outstanding options and warrants, and future issuances of other securities will dilute the ownership interests of existing shareholders. We may be required to pay liquidated damages in the event one or more of the registration statements we have filed with the SEC for the benefit of third parties ceases to be effective.

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855612--3/4/2009--ZIX_CORP