Wave Systems Announces Newest Version of Trusted Computing Software Optimized for the Next Generation of PC Security Chip Hardware

Lee, MA — April 26, 2005 — Wave Systems Corp. (NASDAQ:WAVX) today announced the availability of EMBASSY® Trust Suite (ETS) 4.3 security software, which is designed to support the next generation security chip hardware being released by the global silicon chip manufacturers for use in trusted personal computers. Wave’s ETS 4.3 software is in evaluation with security chip vendors and PC original equipment manufacturers (OEMs) and commercial shipments are expected to be made in the early summer.

Demonstrations of EMBASSY Trust Suite capabilities are being held today and April 27 at the Microsoft Windows Hardware Engineering Conference, Booth 212, Washington State Convention and Trade Center, Seattle, Washington.

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 (TPM) 1.1. Wave has designed its secure business productivity software to work with all commercially available TPMs, designed using the TCG specifications. The newest generation TPM 1.2 is expected to be available from the security chip vendors for PC OEMs beginning this summer. Wave’s ETS 4.3 software is designed to work with these standard products.

"Wave believes the next stage of adoption of trusted computers will occur with the availability of TPM 1.2 security chips. These chips are being designed to take advantage of a more secure environment made available in future software operating systems," said Steven Sprague, president and CEO, Wave Systems. "We have designed our software to work with the new security functionality of TPM 1.2, while also making it backwards compatible with the older version of the TPM in the market."

"Wave will continue to design our ETS solution to be intuitive and easy to use, to offer trusted computing features such as strong authentication, data protection and VPN access based on stated customer requirements, and to be interoperable across all available TPM platforms," Sprague said. "Wave believes its ETS software gives PC users the tools to help them combat computer related identity theft, data theft, fraud and other malicious attacks that are becoming common in business today."

Wave’s ETS secure software capabilities include:

Wave’s ETS 4.3 evaluation kits are available today through Wave sales representatives in North American, Europe and Asia. Commercial availability is expected for early this summer.

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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Wave Media Contact:
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Wave Systems Corp.
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