Wave Systems to Demonstrate Trusted Computing Security Solutions with Giesecke & Devrient at CeBIT 2005

Hannover, Germany — March 9, 2005 — Wave Systems Corp. (NASDAQ:WAVX) today announced its EMBASSY® Trust Suite (ETS) software for trusted computing will be demonstrated at the Giesecke & Devrient (G&D) booth at the CeBIT 2005 trade show, March 10-16, 2005.

At CeBIT 2005, Wave will highlight the newest trusted computing capabilities of its ETS software, including policy management, and management tools to enable hardware security in applications such as email and wireless authentication. Wave has designed its ETS software to be easy to use, to be interoperable across all available platforms and security chip vendors, and to offer server solution upgrades needed by enterprises and government users.

“The combination of trusted computing with smart card technology shows a lot of complementary advantages," said Andreas Raschmeier, head of Business Development, G&D. "As an integrated part of the motherboard, Trusted Computing Group-specified Trusted Platform Modules (TPMs) provide an early integrity control for software and hardware as well as identity control of the entire PC system. The addition of chip card technology, as a smart card or smart USB token, enhances security by allowing multi-factor authentication. It also enables portable user identification delivering a reliable and flexible security solution.”

Demonstrations will be available at the G&D Booth D28, Hall 17, at the CeBIT 2005 trade show. For more information about the demonstrations, please contact Bruno Leconte, at bleconte@wave.com.

"Both Wave and G&D are members of the Trusted Computing Group and Wave is pleased to be able to highlight a range of trusted computing solutions with them at this important trade show," said Bruno Leconte, Wave’s vice president, EMEA.

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

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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 Contact:
Gerard T. Feeney, CFO
Wave Systems Corp.
Wave Investor Relations Contact
David Collins, Richard Land
Catalyst Global LLC

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