Wavexpress Broadband Video Entertainment Services to Include Internet Syndicated Content for Windows XP Media Center Edition 2005

Wavexpress to Offer Media Center Users Automatically Updated RSS Channels

New York City — October 14, 2005 — Wavexpress, Inc. today announced version 3.0 of its TVTonic broadband video entertainment service for PCs running Microsoft Windows XP Media Center 2005. Wavexpress TVTonic gives Media Center PC users access to high quality cached video delivered through the Internet. Now with version 3.0, users can subscribe to any video feed publicly syndicated through the popular RSS format.

Wavexpress TVTonic is available via the Microsoft Windows XP Media Center Edition 2005 Online Spotlight feature. Online Spotlight is an on-demand component of Media Center that provides a convenient, central location where consumers can discover and enjoy the latest online services and software designed for Windows XP Media Center Edition.

Wavexpress specializes in delivering high-quality internet media services. The company builds and operates a subscription management system for media services as well as a media distribution network. The company is majority-owned by Wave Systems Corp. (NASDAQ:WAVX), a leader in trusted computing.

Wavexpress TVTonic makes a true television viewing experience out of broadband video content. Users select content from an on-screen guide and TVTonic takes it from there: fetching new content when available and formatting the content into a familiar experience designed to be watched from the couch with a remote. Wavexpress offers a number of DVD-quality channels including movie trailers, music videos, news and more.

The latest enhancement to the Wavexpress TVTonic service is for the inclusion of RSS (Really Simple Syndication) content. RSS is a popular Internet XML format designed for sharing headlines and syndicating other web content, such as news, community sites and personal weblogs. RSS is the syndication format behind podcasting and is used by an ever-growing number of video bloggers. Through RSS, users can subscribe to video feeds from thousands of publishers, large and small.

"Windows Media Center Edition 2005 is a great platform for entertainment services. The flexibility it provides has allowed us to fully realize a television experience for Internet content," said Michael Sprague, president, Wavexpress. "Media Center users can now get the content they want, the way they want it."

"We’ve heard from our customers that they want quick and easy access to a wide range of on-demand digital entertainment content through their Media Center PCs," said Dave Mendlen, director of Windows Consumer Marketing at Microsoft Corp. "Wavexpress’ RSS capability offers customers the flexibility they want to customize their entertainment and enjoy a broad range of digital entertainment options.”

TVTonic 3.0 for Windows XP Media Center Edition 2005 Update Rollup 2 is now available for download from http://www.tvtonic.com.

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.

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Wavexpress, Inc.
John Callahan
(413) 243 7029

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