New York, NY, November 15, 2002: Wavexpress, the broadband technology company majority owned by Wave Systems (NASDAQ-WAVX), today announced the latest release of its TVTonic™ software, and the launch of its new website at www.tvtonic.com. The new version of TVTonic offers rich, interactive video channels downloaded directly to the home PC.

The breakthrough technology behind TVTonic’s channels introduces a revolutionary new approach to Internet video distribution. Until now, online media has been delivered on-demand, requiring a stream of bandwidth dedicated to each individual consumer whenever they want to watch. This streaming experience typically suffers from buffering delays, latency, reduced screen size and inferior resolution. TVTonic pre-records video channels on the PC hard drive, providing instant access to full-screen, DVD-quality video.

TVTonic is a scalable and cost-effective distribution system for popular digital entertainment. Capable of receiving files delivered via broadcast, datacast, and IP Multicast, TVTonic is compatible with any broadband network. TVTonic is compatible with Wave System’s EMBASSY® security solution to provide increased levels of content protection and user privacy.

“Today when you buy a new computer you expect it to come with at least a 60GB hard drive,” said Steven K. Sprague, President and CEO, Wavexpress. “TVTonic is the first platform to capitalize on this dramatic growth in home storage capacity, combining it with content protection and subscriber authentication to deliver a compelling, video–based, broadband experience. Streaming video rarely offers even VHS-quality. The TVTonic experience is like having a new DVD library installed on your computer every day.”

“We can deliver video files to you via the Internet, cable modem, or terrestrial broadcast, depending on where you are,” said Walter Boyles, Senior Vice President, Business Development. “You don’t care about where your video comes from – you just want entertainment that looks great, is easy to access, and fun to use.”

Available Channels
The TVTonic channels feature video programming from a rich variety of premium content providers. TVTonic has a rapidly expanding video library, as well as extensive catalogs of games, software, music and reviews.

Free sample channels now available on TVTonic Basic include:
• The News: National and international news coverage
• Rawdio: Music videos, interviews and live performances

Pay channels now available on TVTonic Plus include:
• Cartoon Cow: Premium entertainment for kids
• GolfSpan: Golf tips and tactics for players at all levels
• Video Music Hits: Classic music videos
• Model TV: Designer fashion from around the globe
• Turbobytes: Games, software and reviews

The TVTonic channels officially launch today at www.tvtonic.com.

Video Quality
Most TVTonic channels are encoded at 1500 – 4000 Kbps. This delivers a full-screen, DVD-quality viewing experience on the PC. Controls allow viewers to pause, rewind, fast-forward, skip, search, and zoom in or out.

Pricing and Availability
TVTonic Basic is currently available free for a 60-day trial period, after which activation will cost $1.95 per month. Subscribers can access two free channels containing news and music videos. Subscribers with a TV tuner card can also watch, record, and stream live television.

TVTonic Plus provides access to five subscription channels for an additional $2.00 per month. Each channel is updated daily, giving viewers a constant flow of new programming.

TVTonic is available to broadband subscribers throughout the United States. Currently eighteen million Americans have high-speed Internet access at home.

About Wavexpress
Wavexpress enables secure broadband distribution of premium digital media. 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.

About Wave Systems Corp
Wave Systems is a leader in trusted computing solutions and services, including its SignOnline® Suite of Services, a complete web-based digital signing and document storage solution. Wave Systems has developed hardware-based EMBASSY® Trusted Client technology, a Wave TrustEdge® brand of products and the software-based SignOnline suite of services as foundation elements for trusted computing.

Wave’s TrustEdge product line is a comprehensive set of hardware, software, development tools and EMBASSY-based trust infrastructure that allows manufacturers of input devices to develop trusted platforms which are flexible and programmable to support authentication, logon, and identity vault requirements.

TrustEdge-enabled input devices are able to handle multi-factor authentication and identity credentials including passwords, PINs, smart cards, magnetic stripe cards and tokens. TrustEdge can be integrated into a wide range of input devices such as keyboards, smart card readers, biometric readers, cell phones and GPS sensors. For more information about Wave Systems, visit www.wave.com.

For further details please contact:

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

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