WAVES 
                AUDIO AND ITS LEGAL REPRESENTATION ISSUE STATEMENTS REGARDING 
                INTELLECTUAL PROPERTY AND COPYRIGHT INFRINGEMENTS 
              TEL 
                AVIV, ISRAEL, May 18, 2010 — Waves Audio, a leading 
                provider of digital signal processing solutions, recently won 
                one lawsuit and had a defendant admit liability in a second lawsuit 
                regarding intellectual property infringements and the illegal 
                use of its software. The two studios named were New York City-based 
                Reckless Music, LLC, d.b.a. Skyline Recording Studios NYC, and 
                Quad Recording Studios, Inc. The following statements were issued: 
                
              “This 
                is a tremendous victory for the studio recording industry and 
                Waves in particular,” said Waves’ attorney, Mr. Guy 
                H. Weiss, of the international business law firm Adorno & 
                Yoss, LLC. “The Courts are serious about protecting the 
                rights of copyright holders, whether they are singers and musicians, 
                or the software companies that allow the recording industry to 
                mix and record their music,” Mr. Weiss explained. “In 
                the Reckless d.b.a. Skyline case, the jury found that Waves had 
                valid copyrights and that the defendant infringed on those copyrights. 
                The law is clear: A recording studio is responsible for the copyright 
                infringement committed by its employees, independent contractors 
                or customers.”
              Accordingly, 
                the Honorable James C. Francis, IV, United Sates Magistrate Judge 
                for the Southern Federal District Court of New York, instructed 
                the Jury, “[a] person is liable for copyright infringement 
                by another if the person has a financial interest and the right 
                and ability to supervise the infringing activity, whether or not 
                the person knew of the infringement.” 
              Weiss 
                continued, “Thus, Skyline could not rely on the defense 
                that it did not know that its employees, engineers or customers 
                were using cracked software. It had an absolute duty to stop the 
                copyright infringement committed in its studios. In the Quad Studios 
                case, the defendant admitted liability. At settlement, Quad’s 
                owner committed to run a 100% crack free studio in the future.”
                
                “The judgments obtained in these two court cases should 
                send a targeted message to all users of illegal software that 
                Waves is very serious about defending its rights and will continue 
                to fight against the use of cracked software,” stated Gilad 
                Keren, CEO of Waves Ltd. “In the long-term, illegal software 
                does not benefit anyone, as it hurts not just Waves, but all developers 
                and manufacturers of software products including their distributors, 
                retail partners and of course, loyal customers who have purchased 
                legitimate, legal versions of the product. We consider a lawsuit 
                the very last resort, but unfortunately it is a course of action 
                that can protect our intellectual property and ensure that we 
                can continue to develop and bring to market the right tools for 
                the recording, broadcast and post-production industries.”
                
                For more information, please visit www.waves.com.
              ...ends 
                430 words
              About 
                Waves Ltd.:
                Waves is a leading provider of audio DSP solutions for professional, 
                broadcast, and consumer electronics audio markets. Waves has over 
                15 years of expertise in the development of psycho-acoustic signal 
                processing algorithms that leverage knowledge on the human perception 
                of hearing to radically improve perceived sound quality. Waves’ 
                award-winning processors are utilized to improve sound quality 
                in the creation of hit records, major motion pictures, and popular 
                video games worldwide. Waves offers computer software solutions 
                as well as hardware plus software solutions for the professional 
                and broadcast markets. Under its Maxx brand, Waves offers semiconductor 
                and licensable algorithms for consumer electronics applications. 
                Waves’ Maxx technologies dramatically enhance audio performance 
                and are used by industry leaders such as Sony, Sanyo, JVC, Toshiba, 
                and many others. For more information, visit the Waves web site 
                at http://www.waves.com.
              All 
                other product names and trademarks are the property of their respective 
                owners, which are in no way associated or affiliated with Waves.
              Waves 
                Contacts:
                North America Offices:
                Waves, Inc., 2800 Merchants Drive, Knoxville, TN 37912; 
                Tel: 865-909-9200, Fax: 865-909-9245, Email: info@waves.com, 
                Web: http://www.waves.com
              Corporate 
                Headquarters Israel:
                Waves Ltd., Azrieli Center, The Triangle Tower, 32nd Floor 
                Tel Aviv 67023, Israel; Tel: 972-3-608-4000, Fax: 972-3-608-4056, 
                Email: info@waves.com, 
                Web: http://www.waves.com
              Waves 
                Public Relations:
                Clyne Media, Inc., 169-B Belle Forest Circle, Nashville, TN 37221;
                Tel: 615-662-1616, Fax: 615-662-1636, Email: robert@clynemedia.com, 
                
                Web: https://clynemedia.com