WAVE SYSTEMS ADDS CREDIT CARD INTERFACE - To Facilitate "One Click Commerce" via Internet, CD-ROM & Data Broadcast

Business Wire, Feb 21, 1996

NEW YORK--(BUSINESS WIRE)--Feb. 21, 1996--Wave Systems Corp. (NASDAQ: WAVX) announced today that its Wave System information metering and transaction processing system now allows the use of major credit cards to fund Wave System CreditChip accounts. Credit card transaction processing is provided by First USA Paymentech, Inc., a leading credit card payment processor, through its Litle & Co. subsidiary. Wave System's new credit card capability provides significant convenience and efficiency over other account payment forms.

First USA Paymentech's credit card processing enables Wave System users to add funds to their Wave System account through a user- friendly, ATM-like software interface. Credit is added to the user's computer-based CreditChip during periodic modem links in which the user selects a major credit card, enters his/her account information and selects a dollar amount to be credited to the user's Wave account. Once credit is added, the consumer is able to complete transactions with a variety of content vendors through a simple click of a mouse. After the credit has been fully utilized, additional credit may be added by repeating the transaction process. The Wave System simultaneously uploads purchase data from the user, enabling the creation of usage reports for content providers as well as periodic statements for the Wave System user.

Once credit has been established on the CreditChip, consumers can rent or purchase, on a pay-per-use basis, electronic content such as games, individual packets of data or news from large information databases, a software application, or a specialized JAVA applet from the Internet for the duration of a project.

Using other methods of electronic commerce, the consumer must establish individual accounts (and provide credit card information) with each vendor or utilize electronic cash, providing a password to complete each transaction. Wave System's distributed approach streamlines individual purchase transactions, making small transactions both simple and economic for consumers and vendors and alleviating the need for frequent use of passwords and credit card information.

Paul Torchia, Vice President of Wave System Corp.'s WaveNet division which performs and oversees all support service functions of the Wave System, commented on the credit card interface: "After nine months of coordinated development, Wave System's credit card interface, provided through industry leader First USA Paymentech, is now complete. We now offer content providers a turnkey information metering and transaction processing system that incorporates a credit card interface so important to facilitating electronic commerce for individuals as well as corporate users.

"Importantly, our approach simplifies electronic commerce for the consumer by consolidating small, pay-per-use purchases into periodic credit card transactions, the dollar value of which is chosen by the user. As an example, a new user adds $75 to his/her account with a major credit card via a modem link with our back office. The consumer is then free to purchase news, read a magazine article, play games, rent software, etc., all with only a click of a mouse, until the $75 has been utilized. The consumer must then repeat the modem link to charge additional credit to a major credit card, and at the same time, the consumer's CreditChip communicates the user's transactions since the last modem link, enabling the creation of periodic statements for the consumer and each content provider."

Wave Systems developer kits, which enable content providers to develop applications incorporating the Wave System platform, are now available to interested parties.

First USA, Inc. is a financial services company specializing in the credit card business and is among the largest providers of Visa and MasterCard services in the nation. First USA, Inc.'s two principal operating units are First USA Bank and First USA Paymentech. First USA Bank provides Visa and MasterCard services nationwide and had more than 12.9 million credit cards issued with $17.5 billion in managed loans outstanding at December 31, 1995. First USA Paymentech processed $24.6 billion in credit card sales and 446 million items during calendar year 1995.

Wave Systems Corp. has developed and is commercializing a revolutionary new information metering system based on its proprietary WaveMeter semiconductor chip and hardware-based data encryption/decryption, that enables "one click commerce." The Wave System provides owners of electronic content data security, timely payments and accurate information on how their customers interact with the content (usage, quantity, timing, frequency and spending). This capability enables services such as electronic auditing, pay-per-use pricing and individualized, on-demand products while providing end users with superior convenience and control in obtaining useful content via delivery systems including the Internet, satellite transmission and CD-ROM.

CONTACT: James Stokes Hatch