Wave Systems Corp. (fka WAVXQ)

[wavelover]

Having been a shareholder for many years I cannot listen to the comments you make without showing you evidence that things are happening. To protect the idenity of the writer I deleted the writers address. The below was sent to Steven and what follows is his reply.

wavelover


Subject: status




Hi - It's been a while since we last corresponded and I was wondering
about your perspective on progress and timing. You've been a straight
shooter in the past so here's my (and others) take on the current
situation based on lots of discussions and correspondence with various
sources.

The market opportunity keeps looking better and better and you have
greater visibility on initial deployment numbers and next year's
expectations. Perhaps as many as six OEMs will be shipping TPM computers
by year end. Several of these will be from Japan using NSM's chip.

We're ready to go for IBM now and should be on their web site soon
(actually the target was a couple of weeks ago). We're talking with
their customers. We'll also see much more info about wave's services on
our web site soon.

Great progress on the various reseller channels. Lots of positive
activity. We'll see something soon. Believe it or not, I even heard from
someone outside the whole loop that said Wave would be in all HP
computers after the current inventory was sold . (whatever that means)

Getting to talk with the gov't agencies as part of a Transit Authority
project. Great opportunity.

Good progress with our West Coast strategic partner on the investment
and R&D side. I'm not sure how the Series H preferred holders fit in
here given their right of first refusal.

That Wavexpress deal with foreign investors could come any day.

And on and on and on.


But I also here we're once again running on fumes. I can't help but
think this is best and worst of times. I actually don't understand how
we can have this much visibility, be so critical to chair the
infrastructure subcommittee of TCG and can't find sufficient funds to
carry us through to a real deployment stage. Some things just don't
compute and I'm wondering what information is off.

I am hoping that you've considered ways to discourage TCG members from
trying to weaken Wave and get the IP cheaply. Is there a way to make
that difficult or very expensive. Have we talked with other deep pockets
like Sun (who hates Microsoft)or Nokia who might see ETS as attractive
for security. Do we have a plan to solicit well heeled Wave investors
since I can't see us going back to the same vultures for more money? I
just want us to be thinking outside the box in case the west coast
doesn't pan out.

Well this was sort of a brain dump but does express my current concerns.
Can you respond to some of this. Thanks



From: "Steven Sprague" <[e-mail]>
To: Subject: Re: status
Date: Tue, 22 Jul 2003 08:52:48 -0400



I thinkyou have summed it up very well, The only part is there is no conspiracy
theory. As a public company strategic investment is much harder and always has
been. We have access to capital and we are leveraging a couple of Wave assets to
help cover our cash needs. It is and has been tight but we are doing our best
with what we are given to build share holder value. The market ahead of us is
tremendous the trick is to get there with out significant dilution so that we
can all enjoy the benefits. Wave is engaged on a number of fronts and the
progress is very tangable.

Steven