Wavexpress Releases New Version of
TVTonic Tailored for Windows Vista

TVTonic to Be Unveiled at CES 2007 as a Part of the Online Media Section on Media Center for Windows Vista Home Premium and Ultimate Editions

New York, NY — January 8, 2007 — Wavexpress, a provider of broadband media technology and services, majority-owned by Wave Systems Corp. (NASDAQ: WAVX), today announced the release of a new version of its TVTonic™ application that is designed to make optimal use of the power of Windows Media Center in Windows Vista and to allow users to watch thousands of their favorite short-form online videos in a broadcast-like viewing experience. This new version, available through Online Media in Windows Media Center on Windows Vista Home Premium and Ultimate Editions, introduces users to the next generation of Internet television and is designed for remote control TV surfing.

"TVTonic brings the wealth of Internet video into an entertaining and reliable living-room television experience," said Michael Sprague, president of Wavexpress. "Microsoft’s new Windows Media Center Presentation Layer platform technology and Xbox 360 integration gave us many of the tools to achieve our objectives for this product. With TVTonic, our content partners, large and small, can reach many viewers in the living room with an HD experience simply by making their video available on the Web."

The new TVTonic includes a number of cutting edge features, aimed at providing an unrivaled Internet television viewing experience to users, such as:

"Windows Vista is designed to fit people’s lives. Our work with Wavexpress helps us deliver on the promise of personal computing," said Dave Wascha, director of partner marketing communications for Windows Client at Microsoft Corp. "We appreciate the support Wavexpress has provided at this year’s Consumer Electronics Show to make people’s lives easier and better connected."

TVTonic is a free offering available through the Online Media feature in the Windows Media Center of Windows Vista and to any PC user at www.tvtonic.com . By taking the hassles out of searching for quality video on the Internet, it can create a classic television experience where users can simply pick a channel using their remote, sit back and enjoy. This can reduce the need to engage in a time-consuming hunt for the best online videos or suffer from clunky streaming video downloads that freeze up or refuse to play at all. TVTonic is designed to cache content chosen by users on the user’s hard drive, where it can be viewed in up to full HD quality.

TVTonic is also designed to be navigated with a remote, just like classic TV, for easy surfing across channels, from technology shows and video podcasts, to cartoons and music videos.

TVTonic will be unveiled and demonstrated at CES 2007, which is taking place in Las Vegas, Nevada from January 8-11. The offering can be found in the new Online Media section in Windows Media Center. Check out TVTonic at the Windows Vista booth at the Central Plaza 9 location. For more information about the show, please visit: http://www.cesweb.org/default.asp .

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.

Wave Logo

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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For more information please contact:

Company:
Wave Systems Corp.
Michael Wheeler
413-243-7026
mwheeler@wave.com
Wave Media Contact:
Schwartz Communications
Michael Schultz / Tiffany Archambault
781-684-0770
wave@schwartz-pr.com
Wave Investor Relations Contact
David Collins, Ratula Roy
Catalyst Global LLC
212-924-9800
wavx@catalyst-ir.com