Groupement des Cartes Bancaires “CB” of France to Use Wave Systems’ Trusted Computing Software Development Tools

Lee, MA — Jan. 20, 2005 — Wave Systems Corp. (NASDAQ:WAVX) today announced that Groupement des Cartes Bancaires, “CB”, the French banking authority for payment systems involving bank cards and terminals, will use Wave’s secure software development tools to evaluate the potential of Trusted Computing Group (TCG)-compliant computing solutions. The tools are designed to simplify the development process associated with creating TCG-compliant applications.

TCG security standards for personal computers enable more secure data storage. Wave Systems offers the TCG-Enabled Toolkit and Cryptographic Service Provider (CSP) to help applications and services developers address the technical aspects of implementing trusted computing.

"Cartes Bancaires and its member banks are interested in evaluating the potential of TCG-compliant trusted computing solutions particularly in the areas of on-line shopping and on-line payment," said Andree Bertrand, director, Research and Technology, "CB". "TCG technology is complementary to the smart card technology already in wide use by French consumers today, and we are interested to explore new technology options."

Wave products work with a TCG-compliant Trusted Platform Module (TPM) — a single chip solution embedded inside a PC. Millions of PCs have been shipped by the industry with TPMs installed.

Addressing the needs of independent software vendors, Wave’s toolkit is a compilation of tools designed to assist application developers in writing new applications and services for the TCG market, or to modify existing ones, to function on TCG-compliant PCs.

"Wave looks forward to working with Cartes Bancaires and its member banks as they evaluate the potential of TCG-compliant trusted computing solutions," said Bruno Leconte, Wave vice president of sales, EMEA.

More information on Wave TCG-Enabled Toolkit pricing and licensing terms is available at www.wave.com.

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About Wave Systems Corp.

Wave is a pioneer in hardware-based PC security that provides software to help solve critical enterprise PC security challenges such as data protection, strong authentication, network access control and the management of these enterprise functions.  Wave is a founding member of the Trusted Computing Group (TCG), a consortium of more than 100 companies that forged open standards for hardware security.  Wave’s EMBASSY® line of client- and server-side software leverages and manages the security functions of the TCG’s industry standard hardware security chip, the Trusted Platform Module (TPM) as well as hard drives that comply with TCG’s “Opal” self-encrypting drive (SED) standard.  Self-encrypting drives are a growing segment of the data protection market, offering increased security and better performance than most existing software-based encryption solutions.  TPMs are standard equipment on many enterprise-class PCs shipping today and have shipped on an estimated 300 million PCs worldwide.  Using TPMs and/or SEDs and Wave software, enterprises can substantially and cost-effectively strengthen their current security solutions.  Visit http://www.wave.com for more information.

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For more information please contact:

Wave Media Contact:
Michael Wheeler
Wave Systems Corp.
413-243-7029
mwheeler@wave.com

Wave Systems
Bruno Leconte
33-228-074-201
bleconte@wave.com

Wave Investor Relations Contact
David Collins, Richard Land
Catalyst Global LLC
212-924-9800
wavx@catalyst-ir.com

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