Anaheim, CA — November 28, 2001: Wavexpress, the secure broadband content delivery service, and KenCast, Inc., the leading provider of highly reliable, secure and efficient digital broadcasting software, today announced the integration of KenCast's Fazzt® Digital Delivery System with Wavexpress' IP Multicast service. The solution provides cable operators with new revenue opportunities from secure content delivery. Consumers benefit from a television-like experience, far exceeding that of broadband streaming media.

Wavexpress capitalizes on underutilized IP Multicast capabilities and available off-peak bandwidth, creating new variable revenue streams beyond current High Speed Data access fees. The Wavexpress platform provides secure, efficient broadband distribution and sale of music, games, software, video and other valuable IP content. Wavexpress enables the cable operator to partner with content providers, simultaneously offering higher quality content to customers and reducing IP distribution costs. The Wavexpress solution integrates parent company Wave Systems' (NASDAQ: WAVX) EMBASSY® hardware security. The EMBASSY meter secures the IP Multicast distribution channel, providing unrivalled copyright protection, flexible business models, private transactions, and guaranteed payment.

"Wavexpress provides a state of the art security solution for cable operators," said Bill Steele, Chairman & CEO of KenCast. "We are pleased to offer KenCast's reliable multicasting with Wavexpress' secure delivery for distribution of copyrighted materials. We believe these types of tools are necessary to unlock large scale distribution of quality content by the major owners of these materials."

"The integration of Fazzt's leading edge transport and forward error correction technology further strengthens the core qualities of our solution: reliability and security," said Brian J. Hickey, Vice President and General Manager, Wavexpress. "Wavexpress' Multicast platform provides a compelling alternative to the streaming media experience. Now MSOs can offer full screen, DVD-quality programming over the cable modem, providing a valuable new service for their high speed data customers."

Wavexpress and KenCast will demonstrate the secure delivery and caching of premium pay-per-use content via the cable modem to the PC at KenCast Booth 2231, The Western Show, Anaheim Convention Center, November 28-30.

About Wavexpress
Wavexpress provides secure content distribution for cable operators, terrestrial broadcasters and satellite providers. Wavexpress technology utilizes digital bandwidth to deliver additional rich media products—movies, music, games, software, catalogs and advertisements—to the home. Wavexpress has developed tools for packaging, protecting and delivering IP-based programming. The TVTonic™ client platform supports a variety of business models, including ad-supported content distribution, pay-per-use, purchase transactions, and subscription services.

Wavexpress capitalizes on the engineering expertise of Sarnoff Corporation, and Wave Systems' EMBASSY® technology and back-office systems that handle distributed content protection and transaction reporting functions.

About KenCast
KenCast is an engineering and software company that offers its flagship product, the Fazzt® Digital Delivery System, for ultra reliable, secure and efficient broadcasting of files and live streams at broadband speeds over one-way or two-way networks. Fazzt's sophisticated FEC (Forward Error Correction) and support for encryption protect content end-to-end, network-to-network. KenCast has installed over 500 Fazzt systems globally for the cable, entertainment, broadcasting, military, government and telecommunications industries. Fazzt enhances a wide array of applications such as video-on-demand (VOD), digital cinema, distance learning, financial data distribution, and the delivery of news and advertising for broadcasters and cable companies.

For further details please contact:

Wavexpress
Simon Tidnam
Tel: 917-339-9083
stidnam@wavexpress.com

KenCast
William E. Steele
Tel: 203-359-6984
fazzt@kencast.com