EMBASSY® Trust Suite 4.3 Software Now Available with New Intel Desktop Motherboards

Lee, MA — May 26, 2005 — Wave Systems Corp. (NASDAQ:WAVX) announced today that the next version of Wave’s trusted applications and services software security suite, EMBASSY® Trust Suite 4.3, is shipping with the new Intel® 945 Express Chipset-based Intel Desktop Boards D945GNTLKR , D945GTPLKR and D945GCZLKR for trusted personal computers.

EMBASSY® Trust Suite (ETS) 4.3 software is designed to support the next generation security chip hardware, called Trusted Platform Module (TPM) 1.2, integrated into the Intel desktop boards , and can be used in a wide variety of customer applications.

“As a global leader securing self-service terminals and ATM networks, Diebold’s partnership with trusted computing technology is a natural progression,” said Ken Justice, Diebold’s vice president of product marketing and management. “We are working closely with Intel and Wave to deploy the first automated teller platform utilizing the TPM and Trusted Computing Group (TCG) specification. This approach merges hardware and software technology and truly delivers on the realization of trusted, secure computing.”

Wave’s ETS software is designed to be compliant with TCG specifications and work with all commercially available TPMs. The computer industry has shipped millions of PCs embedded with the TCG-standard TPM 1.1 chip and now shipping is the newly introduced 1.2 TPM chip from STMicroelectronics that is integrated into the Intel desktop boards.

“ST is very pleased to be part of these initial TPM 1.2 platform offerings," said Mike Yousef, vice president of ST’s Computer and Peripherals business unit. "Our system level understanding of computer and peripheral platforms, particularly in the area of security, is a natural fit for the development of trusted computing products. The Wave ETS software suite pulls it all together in a simple to use application that will delight business users.”

"Wave has made available TCG-compliant software targeting business users of next generation PCs," said Brian Berger, executive vice president, marketing and sales, Wave Systems, "and we are pleased to have our 3 rd generation products being bundled with desktop boards based on the Intel® 945 Express chipset family and shipping into the market."

This agreement does not provide for any minimum or maximum guaranteed shipped quantities.

For more information about Wave’s trusted applications and services, please go to: http://www.wave.com/products/ets.asp . For more information about the new Intel desktop boards visit: http://intel.com/design/motherbd/ .

Wave is a member of TCG, an industry organization dedicated to embedding trust and security more broadly into computing platforms and devices. More information about the TCG is available at www.trustedcomputinggroup.org. 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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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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