Wavexpress Broadband Video Entertainment Services Planned for Media Ce

    Business Editors

    LAS VEGAS--(BUSINESS WIRE)--Jan. 6, 2005--Wavexpress, Inc. today announced that it plans to offer their Wavexpress TVTonic video service to Media Center PC users via Microsoft's Online Spotlight. Online Spotlight is a selection of featured services within Microsoft Windows XP Media Center Edition 2005 that offers Media Center PC users a fast, simple way to access compatible services directly from the main navigation screen of Media Center Edition 2005. Wavexpress specializes in the delivery of full-screen, DVD-quality digital content over broadband networks. The company is majority-owned by Wave Systems Corp. (NASDAQ:WAVX), a leader in trusted computing.
    TVTonic channels will work with the Media Center PC Remote and will be optimized for the living room viewing experience. After activating the Windows Client application, Media Center Edition 2005 users will be able to subscribe to free TVTonic channels including News, Music Videos, Cartoons and Movie Previews. When new programming is available it will be automatically received and stored in a secure local cache. Subscribers will have instant access to high-quality programming on demand - from the couch, or from the desktop.
    "Windows XP Media Center Edition 2005 is an integral component of Wavexpress' product strategy," said Michael Sprague, president, Wavexpress. "We believe that Media Center Edition 2005 is the preferred environment among the broadband-connected, entertainment-seeking audience that Wavexpress serves. Our planned delivery of internet video channels through Media Center PCs is designed to bring media companies a powerful, rapidly expanding distribution opportunity."
    "We are pleased to be working with Wavexpress to make these exciting new video channels available to Media Center PC users," said Bill Mannion, Director of Windows Consumer Marketing for Microsoft Corp. "The combination of Windows XP Media Center Edition 2005 with the Wavexpress solution will enable entertainment companies to offer internet video channels to Media Center PC users."
    "The Niveus Media Center will ship with TVTonic pre-installed, giving our customers an enhanced Media Center PC experience," said Tim Cutting, president and CEO, Niveus Media. "Including TVTonic in Online Spotlight presents Wavexpress channels as a seamless extension of the Media Center Edition 2005 environment."
    TVTonic for Windows XP Media Center Edition 2005 is now available for download from http://www.tvtonic.com/mce/.
    More information about Wavexpress products and services is available from http://www.wavexpress.com.

    About Wavexpress

    Wavexpress enables secure broadband distribution of premium digital content. The company delivers full-screen, DVD-quality video, games, music and software. Wavexpress supports a variety of business models, including subscription, pay-per-view, and advertising services.

    About Wave Systems

    Consumers and businesses are demanding a computing environment that is more trusted, private, safe, and secure. Wave is the leader in delivering trusted computing applications and services with advanced products, infrastructure and solutions across multiple trusted platforms from a variety of vendors. Wave holds a portfolio of significant fundamental patents in security and e-commerce applications and employs some of the world's leading security systems architects and engineers. For more information about Wave, visit http://www.wave.com.

    Safe Harbor for Forward-Looking Statements

    Except for the statements of historical fact, the information presented herein constitutes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include general economic and business conditions, the ability to fund operations, the ability to forge partnerships required for deployment, changes in consumer and corporate buying habits, chip development and production, the rapid pace of change in the technology industry and other factors over which Wave Systems Corp. has little or no control. Wave Systems assumes no obligation to publicly update or revise any forward-looking statements.
    All product and company names herein may be trademarks of their registered owners.

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CONTACT: Wavexpress, Inc. John Callahan, 413/243-7029 jcallahan@wavesys.com

KEYWORD: NEVADA MASSACHUSETTS INDUSTRY KEYWORD: HARDWARE SOFTWARE NETWORKING SOURCE: Wavexpress, Inc.

Copyright Business Wire 2005