Wavexpress Licenses TVTonic Direct™ Broadband Technology To Quadra Media LA For Spanish Language DVD-Quality Video Service To Spanish Speaking US Households

Lee, MA — 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.

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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.

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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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For more information please contact:

Wave Media Contact:
Michael Wheeler
Wave Systems Corp.
413-243-7029
mwheeler@wave.com
Wave Investor Relations Contact
Richard Land
Catalyst Global LLC
212-924-9800
wavx@catalyst-ir.com

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