Capitol Broadcasting Unit, DTV Plus & WaveXpress Form Strategic Partnership To Explore & Deliver Broadcast E-commerce


April 4, 2000
For more information, contact:

Sam Matheny, Vice President and General Manager, DTV Plus
Email: Phone: 919-850-4540

David Goldberg, WaveXpress, Inc., (212) 244-8438

Anne Glauber/ Joan Finamore, Ruder Finn, (212) 593-6481 583-2708

Capitol Broadcasting Unit, DTV Plus & WaveXpress Form Strategic Partnership to Explore & Deliver Broadcast E-Commerce

NEW YORK, NY, March 29, 2000 – DTV Plus, the datacasting unit of Capitol Broadcasting and Wavexpress, a new technology company providing e-commerce and datacasting services to digital TV broadcasters, today announced a strategic partnership to collaborate in developing an infrastructure for the delivery of broadcast e-commerce. As a result of the new strategic relationship, DTV Plus has invited Wavexpress to participate in one of the first commercial field tests of datacasting, to be conducted in Raleigh, NC starting in mid-April.

The test involves sending information, Web sites, news, weather, sports, MP3 files, videos on demand and consumer coupons through the digital broadcast to PCs in 200 homes in Raleigh, N.C. Through this process, WaveXpress will test its unique infrastructure for the purchase of digital content using a patented technology that establishes a secure transaction environment in individual PCs. Wavexpress views this technology as the solution for broadcast e-commerce.

In the Raleigh test, DTV Plus will test consumers’ response to the variety of content being delivered. “Wavexpress is pleased that DTV Plus, a pioneer in datacasting, has selected us as a strategic partner in this important field test. This trial is a key step in Wavexpress’ plans for the launch of its broadcast e-commerce service in the second half of 2000,” said Clifford Jenks, CEO of Wavexpress.

In 1996, Capitol became the first U.S. broadcast group to transmit HDTV over the air. DTV Plus was formed to develop and deploy a national digital television data broadcast channel to help broadcasters leverage digital bandwidth. “Our early exploration of DTV has convinced us that data broadcasting will play a major role in the future of television,” commented Tom Allen, Senior Vice President of Broadcasting, Capitol Broadcasting Company.

Sam Matheny, Vice President and General Manger of DTV Plus said, “Data broadcasting offers a powerful complement to today’s bandwidth-constrained Internet, and will make it possible for consumers everywhere to receive rich media content using the TV infrastructure. We feel that Wavexpress brings a unique approach to e-commerce, especially for transactions involving digital content, allowing us to lay the groundwork for a whole new era in broadcasting.”

Wavexpress technology allows broadcasters to transmit video, games, software, music and Internet content – in parallel to regularly scheduled programming – to consumers on digital televisions and PCs. To deliver this revolutionary new service, Wavexpress is leveraging its resources from Wave Systems, a leader in trusted client technology, and Sarnoff Corporation, a pioneer in broadcasting and HDTV. The Wavexpress system benefits all of the industry players. Broadcasters benefit with new revenues from the use of excess bandwidth and content providers benefit from targeted, efficient and fast delivery systems. Using Wavexpress’ revolutionary distributed trust system, consumers can use and purchase information, entertainment, products and services quickly and securely.

About DTV Plus: DTV Plus is a division of Capitol Broadcasting Company, Inc., and is devoted to developing and deploying a nation-wide datacasting network. DTV Plus utilizes satellite and digital television technologies to deliver on its vision.

About Wavexpress, Inc.
WaveXpress, a joint venture Wave Systems Corp. and Sarnoff Corporation, provides a full range of secure data broadcast architecture, infrastructure, and content services to broadcasters, content providers and consumers. Wavexpress’ broadcast e-commerce system offers a variety of business models, including ad-supported content distribution, pay-per-use, purchase transactions, and subscription services. Sarnoff is contributing its broadcast engineering expertise. Wave Systems is providing its Embassy technology and back office systems to handle distributed content protection and transaction reporting functions. For more information, please visit the WaveXpress web site at

About Wave Systems
Founded in 1988, the mission of Wave Systems Corp. (Nasdaq: WAVX) is to create the world’s best technologies and services to secure and sell digital information. Embedded in PC hardware and peripherals, set-top boxes and other devices, Wave’s Embassy “trusted client” technology forms the foundation for a new client-based 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. For more information, please visit the Wave Systems web site at

About Sarnoff
Sarnoff Corporation creates and commercializes electronic, biomedical and information technology. Founded in 1942 as RCA Laboratories, Sarnoff is now a wholly owned, for-profit subsidiary of SRI International. The company’s innovations include the development of color television and the liquid-crystal display, a leadership role in creating the technology for digital and HDTV in the U.S., and key contributions to the MPEG standards. Sarnoff works with industry and government clients to develop and improve specific technologies that will help change the world. The company has founded fourteen new companies to bring its technologies to market.

Capitol Broadcasting Company, Inc. is a diversified communications company which owns and/or operates WRAL-TV, WRAL-Digital, WRAL-FM, Microspace, the North Carolina News Network, DTV Plus, Wolfpack Sports Marketing, and Capitol Sports Management in Raleigh, NC; WJZY-TV and WFVT-TV in Charlotte, NC; WILM-TV in Wilmington, NC; WRAZ-TV and the Durham Bulls Baseball Club in Durham, NC; and the Myrtle Beach Pelicans Baseball Club in Myrtle Beach, SC; Capitol Broadcasting Company also founded Local TV on Satellite in Raleigh, NC.

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