Wave Systems Demonstrates Trusted Computing Software for Enterprise and Government at RSA Conference 2005

Lee, MA — February 15, 2005 — Wave Systems Corp. (NASDAQ:WAVX) today announced it will demonstrate its secure software, EMBASSY Trust Suite (ETS), which now provides features including policy management, and management tools to enable hardware security in applications such as email and wireless authentication.

Demonstrations of Wave’s ETS, including these new features, will be held at Booth 421, the RSA Conference 2005, February 15-18, at the Moscone Convention Center, San Francisco. Wave’s ETS capabilities will also be demonstrated at the Trusted Computing Group (TCG) booth.

Wave’s ETS secure software capabilities being demonstrated include:

“To enhance an enterprise’s existing security infrastructure, Wave’s ETS software is designed to deliver the tools and utilities to integrate security from the desktop into the network, including strong authentication and Virtual Private Network (VPN) access to data protection and web services access control," said Steven Sprague, Wave’s president and CEO.

Wave’s ETS software solutions are designed to be compliant with the Trusted Computing Group (TCG) specifications. The computer industry has shipped millions of PCs embedded with a TCG-standard chip, called the Trusted Platform Module. Wave has designed its secure business productivity software to work with all TCG-compliant TPMs commercially available.

More information about EMBASSY Trust Suite products is available through Wave Systems 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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Under the Private Securities Litigation Reform Act of 1995. This press release may contain forward-looking information within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended (the Exchange Act), including all statements that are not statements of historical fact regarding the intent, belief or current expectations of the company, its directors or its officers with respect to, among other things: (i) the company’s financing plans; (ii) trends affecting the company’s financial condition or results of operations; (iii) the company’s growth strategy and operating strategy; and (iv) the declaration and payment of dividends. The words "may," "would," "will," "expect," "estimate," "anticipate," "believe," "intend" and similar expressions and variations thereof are intended to identify forward-looking statements. Investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, many of which are beyond the company’s ability to control, and that actual results may differ materially from those projected in the forward-looking statements as a result of various factors.

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For more information please contact:

Wave Media Contact:
Michael Wheeler
Wave Systems Corp.
413-243-7029
mwheeler@wave.com
Wave Investor Relations Contact
David Collins, Richard Land
Catalyst Global LLC
212-924-9800
wavx@catalyst-ir.com

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