Wavexpress Broadband Video Entertainment Services Planned for Media Center PCs

Wavexpress to Offer Windows XP Media Center Edition 2005 Users TVTonic Channels Including News, Music Videos and Movie Trailers

Las Vegas, NV — January 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.”

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. More information about Wavexpress products and services is available from http://www.wavexpress.com.

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About Wave Systems Corp.

Wave is a pioneer in hardware-based PC security that provides software to help solve critical enterprise PC security challenges such as data protection, strong authentication, network access control and the management of these enterprise functions.  Wave is a founding member of the Trusted Computing Group (TCG), a consortium of more than 100 companies that forged open standards for hardware security.  Wave’s EMBASSY® line of client- and server-side software leverages and manages the security functions of the TCG’s industry standard hardware security chip, the Trusted Platform Module (TPM) as well as hard drives that comply with TCG’s “Opal” self-encrypting drive (SED) standard.  Self-encrypting drives are a growing segment of the data protection market, offering increased security and better performance than most existing software-based encryption solutions.  TPMs are standard equipment on many enterprise-class PCs shipping today and have shipped on an estimated 300 million PCs worldwide.  Using TPMs and/or SEDs and Wave software, enterprises can substantially and cost-effectively strengthen their current security solutions.  Visit http://www.wave.com for more information.

Safe Harbor for Forward Looking Statements

Under the Private Securities Litigation Reform Act of 1995. This press release may contain forward-looking information within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended (the Exchange Act), including all statements that are not statements of historical fact regarding the intent, belief or current expectations of the company, its directors or its officers with respect to, among other things: (i) the company’s financing plans; (ii) trends affecting the company’s financial condition or results of operations; (iii) the company’s growth strategy and operating strategy; and (iv) the declaration and payment of dividends. The words "may," "would," "will," "expect," "estimate," "anticipate," "believe," "intend" and similar expressions and variations thereof are intended to identify forward-looking statements. Investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, many of which are beyond the company’s ability to control, and that actual results may differ materially from those projected in the forward-looking statements as a result of various factors.

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Contact:

Wavexpress, Inc.
John Callahan
(413) 243 7029
jcallahan@wave.com

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