CharityWave Launches With 30 Prominent Non-Profit Organizations.

NEW YORK--(BUSINESS WIRE)--November 17, 1999--

FREE ONLINE SERVICE GUARANTEES CHARITIES 100% OF EVERY DONATION

Wave Systems Corp. (NASDAQ:WAVX) announced today the global launch of CharityWave, a free online charitable contribution service that guarantees participating non-profit organizations 100 percent of all monies donated. Through CharityWave, visitors to participating charities' Web sites, CharityWave's Web site (http//www.charitywave.com) as well as the Web sites of participating corporate and other charity sponsors, can make donations to the non-profit organizations of their choice electronically at any hour, instantly, and with complete security. CharityWave launches with 30 prominent charities, including United Way International, National Wildlife Federation, National Conference for Community and Justice, National Center for Missing and Exploited Children, and World Monuments Fund.

In announcing the official launch of the service, Peter Sprague, Chairman and CEO of Wave Systems, and former Chairman of National Semiconductor said, "Wave has built one of the most efficient e-commerce systems on the Internet. We have created the system to link those who create music, text and images with those who would like to purchase creative content. We realized that the same system could be used to help charities. Our ultimate goal is to make it possible for anyone on the web to reach out and contribute to the lives of others. When you read an article, see an image or visit a Web site that touches you, it ought to be possible to react immediately and help. Technology, which often seems to lead to alienation, can lead to closer communities. If our efforts can help accomplish this, we will be very gratified.

"We are offering this service at no charge to either consumers or to charities. Why? Because, technology companies have an immense array of communications tools, expertise, and services that can be of benefit to the non-profit world. Charities must become a core part of the online revolution. We owe it to society to give back, not just money, but the means of access to the ever-increasing millions who are online daily."

The list of inaugural charities at launch range from the local to the international. Wave's emphasis has been to seek charities that pass all of the standards of national ratings organizations. Charities participating in the CharityWave launch include:

Center to Prevent Handgun Violence (Washington, D.C.)

City Lights Youth Theater (New York)

Common Ground Community (New York)

Deafness Research Foundation (New York / Washington, D.C.)

Eyes of the Wild (Wildlife Management) (Utah)

Gifts In Kind International (Virginia)

Heart to Heart International (Kansas)

The Horticultural Society of New York (New York)

Landmark Volunteers (Massachusetts)

Ms. Foundation for Women (New York)

The Momentum AIDS Project (New York)

National Center for Missing and Exploited Children (Virginia)

National Conference for Community and Justice (NCCJ) (New York)

National Crime Prevention Council (Washington, D.C.)

National Wildlife Federation (Virginia)

New York Urban League (New York)

Orchestra of St. Luke's (New York)

Our Little Brothers and Sisters

(Nuestros Pequenos Hermanos) (Virginia)

People For the American Way Foundation (Washington, D.C.)

Rainforest Alliance (New York)

San Jose State University Foundation (California)

The Smile Train (New York)

Strang Cancer Prevention Center (New York)

Union of Concerned Scientists (Massachusetts)

United Neighborhood Houses (New York)

United Way International (Virginia)

Ventfort Hall Association (Massachusetts)

WETA-TV (Greater Washington, D.C.)

Wildlife Preservation Trust International (Pennsylvania)

World Monuments Fund (New York)

In addition to these charities, CharityWave has developed a strategic alliance with Alumnipride.com, widening the participating non-profit list to include colleges and universities throughout the United States.

William P. Massey, President of National Charities Information Bureau, noted, "CharityWave is making a significant contribution to the online giving marketplace by emphasizing charities that have been vetted and received favorable evaluations. Public trust generally is enhanced when potential donors to non-profits are provided independent evaluative information, such as that provided by NCIB, rather than self-reported or unaudited statements.

"Further, CharityWave builds public trust with its guarantee that 100 percent of all monies donated will reach the designated organization. By its commitment to being accountable to the contributing public as well as to the nonprofits they support, CharityWave is ensuring access to new sources of revenue at no cost to many deserving charities while providing the ultimate convenience and security for donors."

Putting CharityWave to Work

CharityWave has been set up to benefit both donors and participating nonprofits. Donors benefit because CharityWave allows individuals at their computers to make small cash contributions of $1 - $500 through a simple and secure, prepaid Wave account. Donors need have no fears about transmitting personal and credit card information over the Internet, because such information is protected by Wave Systems' leading-edge technology for securing digital information.

Donors can also be secure in the knowledge that 100 percent of their gifts will be received by the charities of their choice. CharityWave will underwrite all transaction costs associated with donations. There are no fees for fundraising or for administration to silently reduce their contribution. In addition, donors receive an electronic receipt, good for income tax purposes, for each donation made, and a thank you letter from the non-profit. The donor may also request confidentiality so that his or her donation goes to the charity anonymously.

Charities benefit because they can be reached by impulse and small donors at their computers. Individuals are often put off by the difficulty of making contributions in traditional ways. Now a donor can contribute while at a charity's own home page, through a sponsoring organization's web site, or from any other site on the web that displays the CharityWave logo. CharityWave is designed to be a supplement to a non-profit's fundraising efforts, as well as serve to raise a charity's profile on the web.

Natalie Waugh, Sr. Vice President at The National Wildlife Federation, elected to become a participant in CharityWave because, "The Internet offers an unprecedented opportunity for NWF to expand our outreach to millions of people who care about our nation's wildlife and natural resources. We are excited by the opportunity to participate in CharityWave's cutting edge fundraising."

Added Ernie Allen, President, The National Center for Missing and Exploited Children, "To be able to be a part of an Internet service of such vast potential is a welcome opportunity for any non-profit. We are pleased that CharityWave is opening another door for us to bring the tragedy of missing and exploited children to a vast new audience. People now have another means to give to us easily and quickly - and we can make effective and immediate use of the money to quickly return missing children to their families."

Cristine Cronin, Director of Charitable Programs for Wave Systems concluded, "Online giving is just in its infancy, but I believe strongly that we will see as strong an upward curve in online giving as we have seen in online buying of products and services. This is just the beginning - of charities that will take advantage of the opportunity afforded by CharityWave, and of people looking toward their computer as a way of contributing to making all of society a better place."

CharityWave is a service of Wave Systems Corp. (Nasdaq:WAVX). Wave was founded in 1988 to create the world's best technologies for securing digital information. Wave is committed to trust and security over the web. By providing CharityWave's services to donors and charities, absorbing the cost of the charitable transactions and forwarding 100 percent of each gift received, Wave is advertising the efficiency and security of its transaction system and gaining consumer awareness and confidence. All donations are processed using Wave Systems' transaction technology. For more information about Wave Systems, please visit http://www.wave.com.