TVTonic Announces Content Licensewith Next New Networks

Adds Over a Dozen New Channels to Internet Television Application’s Lineup

New York, NY — October 22, 2007 — Wavexpress, a provider of broadband media technology and services, majority-owned by Wave Systems Corp. (NASDAQ: WAVX), today announced a new content license with Next New Networks. This license allows Wavexpress to offer a dozen new channels from Next New Networks’ micro-television network on Wavexpress’ Internet television application, TVTonic, giving users access to a total of over 370 channels of online video content.

The new channels being added to TVTonic’s lineup include Next New Networks’ full selection of micro-television networks, with content driven and created by the viewers they serve. A sampling of these channels includes:

"Next New Networks is always on the look out for innovative ways to distribute our user-driven Internet television content to the masses," said Herb Scannell, founder and CEO of Next New Networks. "TVTonic offers a platform to do just that, allowing its users to subscribe to the channels of their choice and receive that content on demand."

TVTonic, a free offering available with any PC running Microsoft Media Center, and for online access by any PC user at www.tvtonic.com, is designed to create a television experience out of Internet video by taking the hassle out of searching for quality video on the Internet and allowing the viewer to simply see what’s on, pick a channel, then sit back and watch. TVTonic manages a viewer’s subscriptions much like a digital video recorder (DVR) for the Internet. Viewers select the channels they want to record and TVTonic caches the shows on the hard drive, ensuring that the content is ready for viewing in a seamless, near HD-quality format that remains high quality in full-screen mode. TVTonic is also designed to be navigated with a remote control, either on a consumer’s PC or living room TV, for easy surfing across channels.

"Our goal with TVTonic is to give consumers easy access to the best in video programming available on the Net," said Michael Sprague, president of Wavexpress. "Next New Networks has demonstrated a commitment to producing dynamic, user-driven video content that will serve as an exciting addition to TVTonic’s lineup. Now, with the click of a remote, TVTonic users will be able to flip through all of Next New Networks’ programs in addition to our over 350 other existing Internet TV channels."

About Next New Networks
Next New Networks is a media company that is creating micro television networks over the Internet for targeted communities, bringing together elements of traditional TV networks with Internet functionality that invites viewers to contribute, share and distribute content. The company is headquartered in New York City and is privately held. For more information, please visit www.NextNewNetworks.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. 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.

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.

All brands are the property of their respective owners.

For more information please contact:

Wave Media Contact:
Schwartz Communications
Tim Whitman / 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

Stay up-to-date on news relating to Wave. Join our email list by putting your email address in the space below.