Wave Systems Corp. (fka WAVXQ)

[RootOfTrust]

Hi Snackman

I agree except that I think we can expect licensing revenues to be quite modest compared to what will be realized for the selling of per seat services and server licenses. But you are correct on the income sources:

1. Licensing fee (Wave crytograpic IP) paid for every single SafeKeeper shipped. Definitely a boost for shareholders to see Wave aboard such a high volume item!

2. Bundling of ETS by PC and chip OEMs...known cases are Intel and STMicro. In the case of STMicro it's interesting that their OEM customer(s) apparently are content to take the bundled ETS delivery from STMicro (their TPM vendor) and not in a bundling deal with Wave directly. Perhaps we will still see ETS bundled by NSM per the STMicro deal.

3. Sales of server licenses and per seat services.

Also:

1. There is further potential for the licensing of Wave's IP in the wireless space to name just one possibility.

2. Embassy E2100 in government applications to name just one possibility.