Wavexpress Integrates YuMe’S Ad Platform Into TVTonic

Partnership Enables Wavexpress to Leverage YuMe’s Established Ad Platform and Network for its Free TVTonic Internet Television Service and Content

New York, NY — July 21, 2008Wavexpress, a provider of broadband media technology and services, majority-owned by Wave Systems Corp. (NASDAQ: WAVX), today announced a partnership with YuMe, the first dedicated advertising network created and optimized for broadband video. The agreement integrates YuMe’s ad management platform into TVTonic, Wavexpress’s free Internet television service.

As TVTonic’s audience and network of content providers continue to grow, the strategic partnership with YuMe will provide broader advertising opportunities for both Wavexpress and its content partners. YuMe’s platform is uniquely suited for TVTonic and can dynamically deliver a fresh package of advertisements whether a user is online or offline. Through this partnership, TVTonic is now able to offer both pre-rolls and interstitial ads, as well as actionable overlay banners.

"In Wavexpress we have found an excellent partner that allows us to extend our service into Windows Media Center, supporting advertising in both TVTonic’s high-quality downloaded channels and streaming video from MSN," said Jayant Kadambi, CEO of YuMe. "With the integration of our established ad platform into TVTonic, we are able to provide Wavexpress with a greater ability to service advertising clients aiming to reach Wavexpress’ audience of tech-savvy consumers."

Wavexpress’ partnership with YuMe can enable it to serve advertisers already targeting Windows Media Center, including advertisers with campaigns that are specifically tailored to the remote-driven Windows Media Center user interface. In addition, the YuMe service is designed to provide Wavexpress with the ability to track real metrics on viewership and ad performance in downloaded playback.

"By teaming up with YuMe, we believe that Wavexpress is better positioned to continue to attract innovative video content providers on the Web and to offer our viewers a truly unique and free Internet television experience," said Michael Sprague, president of Wavexpress. "YuMe’s ad platform enables our advertisers to reach viewers whether they are watching TVTonic online, offline or on their living room TV. This integration allows us to better serve our users, content providers and advertisers."

The YuMe ad network and platform will be fully integrated with the upcoming version 3.3 release of TVTonic.

About YuMe
YuMe is the largest dedicated online video ad network and ad management system. With 400+ websites, more than 500 million video streams, and 134 million unique visitors, the YuMe network provides both audience scale and quality reach for advertisers. The YuMe ad management system gives advertisers and publishers the unprecedented ability to identify, classify, and track content to ensure brand safety, contextual relevance, controlled syndication, and consistent delivery across all digital media platforms—Web, downloads, mobile, and IPTV. Key YuMe innovations include the first cross–platform ad solution and the ability to serve multiple ad formats and placements through a single, unified system. YuMe is a privately held company headquartered in Redwood City, CA and backed by Khosla Ventures, Accel Partners, BV Capital and DAG Ventures.

For more information, visit YuMe’s website at www.yume.com and the take2video blog at www.yume.com/blog.

About Wavexpress
Wavexpress enables secure broadband distribution of premium digital content. The company delivers full-screen video in near HD-quality, as well as games, music and software. Wavexpress supports a variety of business models, including subscription, pay-per-view, and advertising services. For more information about Wavexpress, or to learn about its Internet television application TVTonic, please visit www.tvtonic.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:

Wavexpress Contact:
Schwartz Communications
Justin Drake / Dave Bowker

Wave Investor Relations Contact
David Collins, Ratula Roy
Catalyst Global LLC