Wave Systems Powers Kanakaris Pay-Per-View Online Movie Business

Wave Systems Corporation (NASDAQ: WAVX), a leader in providing the world's best technologies and services to secure and sell digital content, and Kanakaris Communications (OTC BB: KKRS), a pioneer in direct over-the-Internet delivery of entertainment content, are partnering to revolutionize the way consumers purchase streaming media. With this partnership, customers can simply click, pay and view their favorite movies on the Web, with streaming provided by INTERVU's patented distributed network and Microsoft Windows Media Technology. The solution represents an extension of Wave's ongoing strategy to develop content-distribution products and services built on a world-class eCommerce infrastructure. ""Streaming media offers significant opportunities when compelling content is matched with a consumer-friendly eCommerce system that allows customers to choose how they pay for that content. We're excited to partner with Kanakaris to demonstrate how Wave's technology can be used to generate revenue by implementing their pay-per-view online movie business model,"" said Shailendra Jain, Vice President of WAVE's New Media Services Group, at this week's NATPE (National Association Of Television Program Executives) Convention in New Orleans, where they are demonstrating a model. Wave's secure, flexible commerce system supports modes of payments like pay-per-view, pay-per-subscription, a back-office-transaction clearing house and a customer-account management system using an online wallet. The wallet includes features such as aggregated billing, online reporting and click & buy, which make it easier for consumers to purchase digital media on demand and manage their accounts online. ""Kanakaris has been involved in full-length online movie delivery since 1995. When we introduced our KKRS.Net virtual theater we wanted to insure we continued to offer innovative new streaming media services and provide the best seat in the house to anyone in the world connected to the Internet. Wave enables us to deliver digital content to that seat and charge in a number of ways. As of today, Kanakaris can deliver any movie or event without compromising traditional distribution means,"" stated Kanakaris Communications CEO Alex Kanakaris. Kanakaris Communications currently features 300 click-and-view full-length motion pictures at its entertainment Web hub, www.KKRS.net. The company plans to build pay-per-view models around its entertainment content that will utilize the joint solution from INTERVU and Wave systems announced earlier this week. About Wave Systems Corp. Founded in 1988, the mission of Wave Systems Corp. is to create the World's best technologies and services to secure and sell digital information. With the recently completed acquisition of NAble Technologies, Wave now has a comprehensive line of trusted client co-processor systems. Wave's technology is an inexpensive, open standards, hardware and software-based device that enables secure transaction processing and distributed information metering in users' PCs. Embedded in PC hardware and peripherals, set-top boxes and other devices, Wave's trusted client technology is the foundation for client-based security applications and a new distribution and purchasing model for content and services. This low-cost, secure ""system within a system"" will enable the personal computer to assume an important new role in the evolving digital economy. By moving secure transactions to the desktop, Wave provides intrinsic value to the electronic commerce process, benefiting PC users, application developers, and hardware manufacturers. About Kanakaris Communications, Inc. Kanakaris provides full-screen, full-length online motion pictures and secure direct over-the-Internet book delivery at the entertainment hub KKRS.NetWork (www.KKRS.Net) as part of its eCommerce ""World Downloadable Content Leader"" package of services.

For more information, please visit Wave's corporate Web site at http://www.wave.com.For more information, contact Fleishman Hillard for Wave Systems, Brian Baker, 415 356 1003, bakerb@fleishman.com or Kanakaris Communications, Colby Marceau, 714 44