Wavexpress TVTonic Consumer Media Service Suspended

Lee, MADecember 1, 2008 Wavexpress, majority-owned by Wave Systems Corp. (NASDAQ: WAVX), announced today that it has suspended its TVTonic consumer media service and is exploring opportunities to sell or license its technology to third parties that may provide "download and play" services.

Steven Sprague, president and CEO of Wave Systems, commented, "Given today’s difficult economic climate, we believe that we need to focus our resources on Wave’s core security solutions business and that we can no longer fund Wavexpress’ operations at current levels. Wavexpress’ suspension of its TVTonic service will result in material reductions in staffing, infrastructure and other costs that have historically been funded by Wave."

Wave estimates that these measures will reduce consolidated operating costs by approximately $800,000 per quarter. A small staff will remain in place at Wavexpress in order to support efforts to license or sell the Wavexpress technology to third parties.

 


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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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For more information please contact:

Company:
Michael Wheeler
413-243-7026
mwheeler@wave.com