Wizzard Software Announces 1st Quarter 2010 Financial Results

Wizzard Software (NYSE Amex: WZE) announced first quarter 2010 financial results today, recording overall revenues of $1,300,610 in the first quarter of 2010, a 10% increase from revenues of $1,178,573 in the first quarter of 2009. The increase for the first quarter of 2010 reflects an increase in revenue in our media business with the launch of our podcast App products and from an increase in sales of our legacy speech software.

During the 1st quarter of 2010, Wizzard’s Media business, where the Company sees large opportunity, has launched many new initiatives and expects most of its future growth to occur, saw a 22.7% increase in revenue over the first quarter of 2009.

Wizzard’s legacy speech software business saw a 21.3% increase in revenue in the first quarter of 2010 over the 1^st quarter of 2009 and Wizzard’s legacy healthcare business segment experienced a 1.9% increase in revenues over the 1^st quarter of 2009.

Wizzard had a gross profit of $484,827, a 30% increase from the first quarter of 2009 of $374,282. Operating Expenses for the first quarter were down 22% from the first quarter of 2009. Including non-cash expenses of $752,264, Wizzard’s loss per share for the first quarter was $.02.

For the first quarter of 2010, Wizzard Media, through its premier podcast-hosting service Libsyn, received 359 million download requests for podcast episodes with an average of 3.99 million episode requests per day. The audience reached by the Wizzard Media Network grew to 18.5 million unique monthly individuals in the first quarter. The number of podcasts on the Wizzard Media Network grew to 14,505, at the end of the first quarter 2010, up from 13,463 as of December 31^st, 2009.

"We have a total of 275 Apps with a lot more on the way and the world’s greatest media based marketing network for iTunes, iPhones, iPods and iPads, through which we promote these Apps,” says Chris Spencer, Wizzard Media CEO. "We continue to see very positive trends with our podcast App business in terms of sell-through, early in-App purchasing numbers and growing demand for our podcast App product from publishers. Now that we have the capital to execute our business plan, I believe we are very close to seeing a ‘break-out’ quarter with accelerated revenue growth.”

Gartner predicts that 21.6 Billion Apps will be sold/downloaded in 2013 worth $29.5 Billion. With the new Apple Tablet selling 1 million units in the first quarter and the recent launch of the iPhone in China, Wizzard’s management believes the number of people using iPhones, iPads and iPod Touch type devices to consume podcasts and interact with Apps will continue to grow well beyond the current 50 million user-base. To date, Wizzard Media has launched 230 iPhone Apps in 71 countries (through iTunes) with top podcast Apps on the Wizzard Network having now converted approximately 30% of their audience from free, to paid. Wizzard plans to expand its Apps to work with Google Android, Palm WebOS and Blackberry in 2010.

Additionally, Wizzard has acquired 15 popular iPhone Apps that it markets via advertisements on its podcast network taking the total number of all paid Wizzard Apps to 275 with 20 more in the approval process. In the first quarter of 2010, Wizzard acquired Gossip Junkie (entertainment app) and Mini-Squadron (game app) and is launching marketing campaigns for both apps in the upcoming weeks. Gossip Junkie is the top selling celebrity gossip app for the iPhone and the iPad and Mini-Squadron had been Wizzard’s top selling app over the last month.

In the first quarter of 2010, Wizzard launched In-App Advertising technology for its podcast Apps as well as In-App Purchasing technology allowing for future content sales and monthly subscription revenue models.

In mid-2009, Wizzard Media introduced a new monetization product for its podcast publishing customers with the launch of an iPhone podcast companion App. The newly launched podcast companion App for popular podcasts on the Wizzard Media Network offers audiences access to their favorite podcast directly on their iPhone, iPad or iPod Touch, bonus episodes and other content and new social communication features such as Twitter and Facebook, creating an unprecedented level of audience entertainment.

Wizzard executed multiple national brand advertising campaigns for companies including JC Penny, Merit Financial and Audible in the first quarter of 2010, delivering 19.8 million ads vs. 9.4 million ads delivered in the first quarter of 2009.

The previously mentioned numbers and statements are highlights from Wizzard’s 2010 1^st Quarter 10Q filing. For a complete and detailed financial description of Wizzard Software Corporation, please visit www.sec.gov, where all of Wizzard’s SEC filings can be found.

iPod, iPad, iPod Touch, iPhone and iTunes are all registered marks or trade names of Apple, Inc.

About Wizzard Software

Through its Media business segment, Wizzard Media provides podcast publishers with distribution and monetization services. Our clients include Microsoft, National Geographic, Harvard Business Review, Usher, NPR and more than 14,000 others who use Wizzard Media products to measure their podcast audience, deliver popular audio and video entertainment and monetize their content through advertising and App sales. In 2009, the Wizzard Media Network received over 1.4 billion podcast requests from approximately 50 million people worldwide through iPods, iPhones, iTunes, Zune and many other devices and destinations. We are part of a publicly held, Pittsburgh based company with Software and Healthcare business segments, thousands of shareholders and a world-class team. Visit us on the web at www.wizzardsoftware.com/media, email us at contact@wizzard.tv.

Legal Notice

Legal Notice Regarding Forward-Looking Statements: "Forward-looking Statements" as defined in the Private Securities litigation Reform Act of 1995 may be included in this news release. These statements relate to future events or our future financial performance. These statements are only predictions and may differ materially from actual future results or events. We disclaim any intention or obligation to revise any forward-looking statements whether as a result of new information, future developments or otherwise. There are important risk factors that could cause actual results to differ from those contained in forward-looking statements, including, but not limited to risks associated with changes in general economic and business conditions, actions of our competitors, the extent to which we are able to develop new services and markets for our services, the time and expense involved in such development activities, the level of demand and market acceptance of our services, changes in our business strategies and acts of terror against the United States.