Wizzard Software's Second Quarter 2006 Revenues Up 268% Over 2005; Up 30% Over First Quarter.

PITTSBURGH -- Wizzard Software (OTCBB:WIZD) announced today after the market close that its 2006 second quarter revenues rose by 268% over 2005 second quarter revenues. This is the sixth consecutive quarter over quarter of revenue growth for the Company. During the three months ended June 30, 2006, Wizzard recorded total net revenues of $782,046, a 268% increase from total net revenues of $291,519 in the second quarter of 2005 and a 30% increase over revenues in the first quarter of 2006 ($602,391).

During the six month period ended June 30, 2006, Wizzard recorded revenues of $1,384,437, a 169% increase over revenues of $515,080 for the same period in 2005.

Wizzard posted a gross profit of $334,346 during the second quarter of 2006, versus a gross profit of $138,139 in the second quarter of 2005, an increase of 142%. For the six month period ended June 30, 2006, Wizzard posted a gross profit of $559,199 vs. a gross profit of $236,361 for the six months period ended June 30, 2005, a 137% increase.

Wizzard's net loss was $1,479,786, or $0.05 per share, in the six months ended June 30, 2006. This represents a 62% decrease from our net loss of $3,915,074, or $0.14 per share, in the first six months of 2005.

"I'm pleased to announce that in addition to recording second quarter 2006 over second quarter 2005 revenue growth of 268%, we also show first quarter 2006 to second quarter 2006 growth of 30%", says Chris Spencer, Wizzard Software CEO. "As we look back at these positive results from the first half of 2006 and consider our recent new products and talking pill bottle distribution announcements, I believe Wizzard is making substantial progress on its business plan and I believe the second half of 2006 will be one of continued progress and substantial achievements."

2006 - Mid Year Shareholder Update - The first half of 2006 has been an exciting year of growth, team-building, identifying opportunities and capitalizing on ideas. Management would like to thank our employees for all the hard work and long hours they've been putting in, resulting in solid progress toward our Company's goals. We are pleased to announce that for the sixth consecutive quarter our revenues have increased over the same period in the previous year. Our investments in key hires, marketing programs, product innovation and business development are starting to show results.

We continue to penetrate various sales channels for our speech enabled, Talking Pill Bottle products. We recently entered into a distribution agreement with MAVC in Canada and launched a pilot program with one of the top three retail pharmacy chains in the U.S. We expect to expand the pilot beyond the current locations in the very near future, targeting aging population sectors of the country. We also expect to add another top national pharmacy chain to our distribution of the Talking Pill Bottle in the third quarter of 2006. We are also seeing increased interest in the Talking Pill Bottle from various state legislative bodies and feel we are well positioned to capitalize on a growing legislative movement as state officials look to make the taking of prescription medication safer for their elderly constituents. We are continually challenging our sales and marketing strategies and our delivery of product to achieve better customer satisfaction, market share and operating results.

We continue to advance our speech recognition and text-to-speech licensing business through our relationships with IBM and AT&T. The number of quarterly reporting customers is growing consistently and we have several customers who have the potential to require large volume licenses in the coming quarters. We continue to meet our customer's needs from industry segments such as emergency telephone alerts, ATM's, video games, e-books, podcasting, telephony IVR and the healthcare market.

Our home healthcare business continues to be a strong, strategic part of our businesses plan as our country's population ages and new methods of patient data capture become critical components for delivering high quality, affordable healthcare services in a patient's home. Although this has been a gradual process, we believe that we are building a strong business that will offer a complimentary package of new technology and traditional services. Our profits for the first half of 2006 in our home healthcare business are ahead of 2005 profits for the same period and ahead of our own internal projections for 2006. Our people are our strongest asset and we will continue to invest in the development of our nurses, aids and staff while providing them with new, speech-based applications to assist them in offering the best possible service for our referrers, and the highest quality of care to our patients. We are currently expanding our territory within the state of Wyoming as a result of the state's willingness to increase Medicaid payments by up to 30% and we expect insurance providers within the state to follow suit this year.

The previously mentioned numbers and statements are only highlights from Wizzard's 2006 second quarter 10Q filing. For a complete and detailed financial description of Wizzard Software Corporation, please visit www.sec.gov, where the 2006 second quarter 10Q and all of Wizzard's SEC filings can be found.

About Wizzard Software

Founded in 1996, Wizzard Software has become a leader in the speech technology application development market. Wizzard architects solutions to business problems using its expertise in consulting, speech development tools and building speech based applications for the Desktop and Internet. Wizzard has achieved global recognition because of its expertise with voice communication whether it is via computer or telephone. Wizzard's successes have lead to expanding speech technology opportunities in both the government and commercial sectors including several healthcare industry products and services. For more information, visit www.wizzardsoftware.com.

In April of 2004, Wizzard acquired MedivoxRx Technologies. Established in 2000, MedivoxRx is the originator of "Rex", the talking prescription pill bottle, which "talks" to the patient allowing them to distinguish what type of medication is in the bottle and hear critical information on dosage amounts and refill parameters. Additional information on MedivoxRx can be found at www.rxtalks.com.

In September of 2005, Wizzard acquired Interim Health Care of Wyoming. Based in Casper, Wyoming, Interim is part of the fast growing home health segment of the healthcare industry, providing a wide range of visiting nurse services to the elderly, wounded and sick. It is one of the 300 home health agencies that comprise Interim Health Care.

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.