Personal Computers Include Support for Next Generation Security

Lee, MA — June 3, 2005 — Wave Systems Corp. (NASDAQ:WAVX) announced today that its EMBASSY® Security Center and Cryptographic Service Provider software applications are included with the new Dell Precision™ 380 workstation and OptiPlex™ GX620 corporate desktop.

These trusted computing software applications are bundled with systems that include the STMicroelectronics Trusted Platform Module 1.2 security chip hardware. A Trusted Platform Module is a silicon chip included in a PC and enables protected storage of secrets for enhanced security capabilities. Wave’s software applications simplify the management and support of security capabilities of the Trusted Platform Module, also known as a TPM.

The Wave EMBASSY Security Center software is designed to allow easy set up, configuration, password management, and multi-factor authentication management for the TPM. The security center helps the user choose management and settings for security policies, and enables TPM key management and recovery capabilities. This application also allows secure, hardware-based log-in, and the addition of fingerprint biometric authentication.

The Wave Cryptographic Service Provider (CSP) allows easy integration of third party applications that make use of the TPM chip for enhanced security of that application. The Wave CSP is compliant with Microsoft’s crypto-API specification. Wave’s trusted computing software is also compliant with Trusted Computing Group specifications and works with all commercially available TPMs. The computer industry has shipped millions of PCs embedded with the TCG-standard TPM 1.1 chip, and is transitioning to the newly introduced 1.2 TPM chip.

An expanded suite of Wave’s trusted computing software, EMBASSY Trust Suite, continues to be available as a purchase option.

This announcement 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.

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.

All brands are the property of their respective owners.

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

Stay up-to-date on news relating to Wave. Join our email list by putting your email address in the space below.