PITTSBURGH–(BUSINESS WIRE)—July 3, 2007-Wizzard Software (OTCBB: WIZD), the world’s largest podcast network, is pleased to announce that it has entered into a definitive agreement for $7.5 million in equity financing from four institutional investors.

“We greatly appreciate the tremendous vote of confidence in Wizzard that this financing represents from our new institutional investors,” said Chris Spencer, CEO of Wizzard Software. “This capital infusion allows us to continue funding the growth of our recently announced podcasting acquisitions and will allow us to accelerate the expansion of our overall podcasting efforts, in which we see tremendous potential.”

Wizzard has been aggressive in its podcasting efforts since entering the market less than one year ago, acquiring three podcast hosting and monetization networks. The Company released figures on network-wide download requests for podcasts to the tune of 85,000,000 in May, up from 42,000,000 in October, 2006. Using highly accurate technology and its expertise in speech recognition, Wizzard offers advertisers ‘brand safe’ user-generated and commercial content from its publishers as well as unparalleled targetability to reach captive audiences. Wizzard continues to grow its internal advertising sales force of industry veterans and while still early in the sales cycle, is seeing strong interest in sponsoring podcasts from national brands. While you do not need an Apple iPod™ to watch or listen to a podcast, Wizzard is expecting continued growth in podcast consumption with the recent launch of the iPhone, a podcast ready device. Wizzard’s launch of a Featured Channel on iTunes allows millions of iTunes users to view select podcasts from over 8,000 podcast publishers hosted on Wizzard’s network.

“The shares sold in this transaction are restricted and Management believes that upon an effective registration with the SEC Wizzard will qualify for a listing on a national stock exchange,” says John Busshaus, Wizzard CFO. “We have been working towards this goal for some time and we plan to file our application as soon as certain short term conditions are met.”

Canaccord Adams acted as placement agent on the transaction. www.canaccordadams.com

The previously mentioned language is only a brief description of Wizzard’s financing deal. For a complete and detailed financial description of the transaction and of Wizzard Software Corporation, please visit www.sec.gov, where the 8-KSB regarding this transaction and all of Wizzard’s SEC filings can be found.

This press release does not constitute an offer to sell or a solicitation of an offer to buy the warrants or shares of Wizzard common stock. The warrants and the shares of Wizzard common stock issuable in this transaction have not been registered under the Securities Act of 1933, as amended, or any state securities laws, and may not be offered or sold in the United States absent registration under or an applicable exemption from registration requirements of the Securities Act of 1933, as amended and applicable state securities laws. Under the terms of a registration rights agreement entered into as part of the transaction, Wizzard has agreed to file a registration statement under the Securities Act with the Securities and Exchange Commission to permit resales to the public of the shares of Wizzard’s common stock and exercise of the warrants.

About Wizzard Media

Wizzard Media is the industry’s leading podcast hosting network. Podcasts are a means for independent and professional content creators to publish audio and video shows for the world to enjoy over the Internet or on mp3 players, such as the Apple iPod. Podcasting is a relatively new phenomenon, but Wizzard Media collectively broadcasts 83 million podcast downloads per month through media aggregators like Apple’s iTunes and other podcast directories. For more information, please visit www.wizzard.tv. Wizzard Media is a division of Wizzard Software, a leader in speech technology development.

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.

Contacts:

IR Contacts:
Arthur Douglas and Associates
Art Batson (407) 478-1120

Ibis Consulting Group, LLC
Dina Lyaskovets
Stephen Lee Gjolme
(949) 852-8434

Media Contacts:
Big Mouth Communications
Amy Bonetti, 415-384-0900, amy@bigmouthpr.com
Susie Marino, 415-613-9138, dearsusan@marino.com