Giesecke & Devrient and Wave Systems Announce Strategic Partnership

Security Solutions Combining Smart Card and Trusted Computing Software Technologies to be Demonstrated at the CardTech SecurTech Annual Conference April 12-14, 2005 in Las Vegas

Munich, Germany and Lee, MA USA — April 12, 2005 — Giesecke & Devrient (G&D) and Wave Systems Corp. (NASDAQ: WAVX — www.wave.com) have formed a strategic alliance to offer an enhanced security solution to address the trusted computing market.

In the IT sector, high complexity and a wide spectrum of applications are boosting the demand for security solutions among private users and businesses alike. The challenge is to devise comprehensive solutions that can satisfy customers’ security needs. Increasingly, what are known as Trusted Platform Modules (TPM) are being incorporated into personal computers for a more trustworthy computing environment. The TPM is a processor that is integrated into the PC motherboard as a separate chip. Use of smart card technology adds a further component to the security solution by serving as a key to the computer, preventing unauthorized access to system and data. G&D and Wave Systems have formed a strategic alliance to market a comprehensive security solution that integrates both components.

The G&D-Wave Systems collaboration will address the organizations’ joint development activities in the fields of smart card technology and trusted computing software. The aim is to leverage the combination of smart card technology and TPM associated software to offer clients in industry and government a comprehensive, flexible and easy-to-use security solution.

Both partners are members of the Trusted Computing Group (TCG), an organization founded in 2003 by leading enterprises in the IT sector to develop open standards for a new generation of secure hardware and software products in virtually all application areas. “Multifactor authentication enabled by systems with TPMs and with smart cards helps IT managers further secure systems and data in the enterprise,” said Brian Berger, TCG marketing work group chair. “The increasing availability and usage of systems with TPMs has enabled a number of security innovations that will help both IT and users.”

In a secure platform environment, the TPM’s task is to protect and generate secret keys and store system configurations safely. The TPM also functions as a hardware-based security mechanism that prevents system changes caused by virus attacks. “The combination of trusted computing with smart card technology shows a lot of complementary advantages. As an integrated part of the motherboard, trusted platform modules provide an early integrity control from software and hardware as well as identity control of the entire PC system. The addition of chip card technology, e.g. as smart card or smart USB token, enables portable user identification to achieve a reliable and flexible security solution,” said Andreas Raeschmeier, Head of Business Development at G&D.

Using smart card technology ensures that only users who can authenticate themselves with a card or token, plus the associated PIN, can gain access to the computer or network. “Smart card technology is flexible and easy to use. Users only have to enter a four-digit PIN instead of a 20-digit passphrase. Possession of the card and knowledge of the PIN provide maximum security, and are user-friendly as well,” said Andreas Raeschmeier, pointing out the advantages of smart card technology.

IT security departments have different security requirements, extending from protection of sensitive data and access control through hard disk encryption to management of hardware and software configuration. For each of these requirements , the trusted platform module can provide valuable support.

“Wave is pleased to be partnering with G&D, a leader in the smart card market, which has strong established relationships in enterprise and government markets in Europe and beyond,” said Steven Sprague, Wave System’s president and CEO. “We believe G&D’s technology leadership can help further the adoption of trusted computing solutions in these geographical and business markets.”

Wave’s EMBASSY Trust Suite (ETS) secure software capabilities being demonstrated with G&D at CardTech SecurTech include security policy management, key archive and management, digital signature, file and folder encryption, secure email, secure wireless authentication and storage and automation of user names, passwords and personal information.

For more information on demonstrations at CardTech SecurTech, please contact the sales organizations of either company.

About Giesecke & Devrient

Giesecke & Devrient (G&D) is a technology leader in the field of smart cards, providing smart card based solutions for the areas of telecommunications, electronic payment, health care, ID, transportation, and IT security (PKI). G&D is also a leading producer of banknotes and security documents, and dominant in the field of currency automation.

Based in Munich, Germany, the G&D Group operates subsidiaries and joint ventures around the world. In fiscal 2003, the group employed some 6800 people and generated revenue of €1.05 billion. For more information, please visit our Web site at www.gi-de.com.

Contact:
Giesecke & Devrient GmbH
Andrea Bockholt, Press Officer
Prinzregentenstrasse 159, 81607 Munich
Telephone: +49-89-4119-2422, Fax: -2020
E-mail: andrea.bockholt@de.gi-de.com

Wave Logo

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.

Safe Harbor for Forward Looking Statements

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:

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

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