Wavexpress Licenses TVTonic Direct-TM- Broadband Technology to Quadra

    Business Editors/TV/Cable Writers/Hispanic Editors

    NEW YORK--(BUSINESS WIRE)--March 10, 2005--Wavexpress, a provider of broadband technology and services, majority-owned by Wave Systems Corp. (NASDAQ: WAVX), today announced that Quadra Media LA, a content delivery platform that aggregates Spanish language video content from various sources and then distributes the content via the Internet to broadband enabled end-users within the Americas, has licensed TVTonic Direct.
    Quadra Media LA, who recently announced a joint development and marketing relationship with Endavo Media and Communications, Inc. (OTC BB: EDVO) for the delivery of Spanish language content to network partners and end-users through Endavo's managed multicast distribution system, will use TVTonic Direct to facilitate the reliable management of their customers' video content and the easy access by end-users that subscribe to receive the free and pay Spanish language service offerings.
    TVTonic Direct is a video-caching technology that is designed to deliver DVD-quality video to the PC. It avoids bandwidth constraints by saving video files to a subscriber's computer hard drive during the day. Unlike streaming, once the subscriber selects a 'delivered' video, the video starts immediately and can be displayed in full-screen, DVD-quality. Each video that is saved on the subscriber's computer hard drive is pre-programmed with its own automatic file expiration parameters, allowing for new content that arrives to replace the old content that has expired.
    To view the delivered content, subscribers download a small software program via their broadband Internet connection. Each day, week, or month, they receive videos that are specific to the on-demand 'channels' of content the end-user subscribed too.
    "We selected Wavexpress's TVTonic Direct because it is a solution that provides our content owners the ability to manage and track their content in real time as well as display their content to subscribers in a high quality manner," said Jorge Tomassello, director of Content Partner Relations.
    In addition to the TVTonic Direct solution providing its content partners complete control of their video content, including how it is displayed to a subscriber, the solution also includes a powerful subscription and advertising engine. This is an important factor to consider when managing revenues that are derived from a free (advertising supported) and pay subscription video service offering.
    "Our customers need to be able to manage their own services - whether they are subscription services or advertising supported - and understand the dynamics of the revenues generated. Wavexpress gives us this flexibility," said Mario J. Pino, director of Network Partner Relations.
    "In addition to our content partners being able to manage their subscription and advertising revenues, the TVTonic Direct Solution provides a powerful reporting engine that provides our Network Partners (e.g. DSL or Cable Modem) the ability to effectively audit their portion of revenues owed as a result of them supporting the content offerings to their end-users that are connected to their networks," he said.
    "TVTonic Direct's complete solution will give Quadra Media LA the ability to offer its Spanish language content partners a quickly deployable, highly efficient, and competitively priced platform where they can leverage the potential of offering their video content, on a free or pay basis, to end-users connected to the Internet," said Michael Sprague, president and Chief Operating Officer of Wavexpress. "Broadband is the right market for content providers to be in and TVTonic Direct is now available to them, opening up substantial new opportunities for online video distribution."

    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. For more information about Wavexpress, visit http://www.wavexpress.com.

    About Wave Systems Corp:

    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.

    About Quadra Media LA:

    Quadra Media LA is a content delivery platform that aggregates Spanish language video content from various sources and then distributes the content via the Internet to broadband enabled end-users within the Americas. End-users access video content through content owner websites or service providers (e.g. DSL, cable, wireless, or satellite). For more information about Quadra Media LA, visit http://www.quadramediala.com.

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CONTACT: Wavexpress John Callahan, 413-243-7029 jcallahan@wavesys.com or Quadra Media LA Mario J. Pino, 888-348-1450, Ext. 80 mariop@quadramediala.com

KEYWORD: NEW YORK INDUSTRY KEYWORD: HARDWARE SOFTWARE NETWORKING PRODUCT SOURCE: Wavexpress

Copyright Business Wire 2005