February 19, 2004 



Since your agency announced, yesterday, postponement of enforcement Rule 3370,
ZIXI's share price has been uninterruptedly shorted into the bid and on
downticks. This is despite the fact that the stock is under UPC 11830
restriction. 

Take a look for yourself at how the net money flow (MFI) has been rapidly rising
for two days in the stock while the On Balance Volume (OBV) has been dropping
with the share price. How is real money flowing INTO the stock while the price
and OBV are dropping? There's only one answer: The real money is buying FALSE
shares (naked shorting). The shorts are running their share printing presses at
a faster rate than buyers can buy the shares. While that's happening innocent
investors are getting stopped out, they're getting margin calls, they're
succumbing to the selling pressure and false information that's being spewed on
Internet stock message boards, call buyers are getting screwed, and the
company's financing options (equity markets) are getting destroyed.

Considering that 3370 was nothing more than an enforcement measure for laws
already on the books, it transcends disgraceful that your agency has agreed to
turn a blind eye to the short's illegal actions for another 40 days. The mere
fact that you announced it was a clear sign to those that break the law that
you're going to let them get away with breaking the law. In ZIXI's case, they've
taken up your offer with a vengeance.

Everytime I think it's not possible to be more disgusted with your agency, you
lower the bar in favor of the thieves and lawbreakers and prove me wrong.

Bill Nasser