Wave Systems Trusted Computing Software to Support Seagate Technology’s New Momentus FDE Hard Drive

Lee, MA — June 14, 2005–Wave Systems Corp. (NASDAQ: WAVX — www.wave.com) has announced that it is extending its EMBASSY® Trust Suite software products to support the new Seagate Momentus 5400 FDE hard drives with hardware-based Full Disc Encryption technology. Seagate and Wave have worked together to ensure complementary technologies that address new market opportunities for security and data protection in the trusted computing market.

Related to these trusted computing opportunities, Wave is developing a new Trusted Drive Manager module and enhancing its Key Transfer Manager products which are components of its EMBASSY Trust Suite (ETS) portfolio of trusted computing software. The enhanced Key Transfer Manager is being designed to support the Seagate Momentus 5400 FDE family of products to enable end users and enterprises to easily manage the life cycle of cryptographic keys including backup, recovery, migration and roaming for encrypted data.

The new Trusted Drive Manager is being designed to work with Wave’s EMBASSY Security Center software to allow easy set up, configuration, password management, and multifactor authentication access control in a trusted computing environment.

Many analysts consider data the most valuable resource within the enterprise networking environment — rather than the cost of the computing equipment — and adding new, innovative security and trust features to the data storage devices provides additional benefits to corporate and government IT environments. Assuring that data can only be accessed by authorized computing platforms, and by authenticated users, is a key focus of Seagate’s full disc encryption technology.

"Seagate’s Momentus 5400 FDE drives represent an important new security foundation for protection of data," said Jeff Loebbaka, Seagate vice president of Global Marketing. "Wave System’s Key Transfer Manager software complements Seagate’s hardware-based encryption technology by giving organizations an easy way to keep track of and manage encrypted keys."

Wave’s ETS is a comprehensive set of applications, development tools, and trusted computing infrastructure services which have been designed to support hardware security features provided by Trusted Computing Module security chips currently shipping in millions of personal computers. Extending ETS to include support for the Seagate Momentus 5400 FDE provides a strategic new dimension for Wave’s trusted computing products and services. The new ETS features are planned to be available at the same time as general availability of Seagate’s Momentus 5400 FDE disc drives later this year.

"Seagate is providing leading edge security features in its products that enterprises can employ to meet the challenging requirements of protection of data, regulatory compliance, and privacy," said Lark Allen, executive vice president, Wave Systems. "Momentus 5400 FDE drives address current security challenges for mobile devices and in concert with trusted computing applications and services such as Wave’s EMBASSY Trust Suite software will enable organizations to achieve stronger levels of data protection."

About Seagate

Seagate is the worldwide leader in the design, manufacturing and marketing of hard disc drives, providing products for a wide-range of Enterprise, Desktop, Mobile Computing, and Consumer Electronics applications. Seagate’s business model leverages technology leadership and world-class manufacturing to deliver industry-leading innovation and quality to its global customers, and to be the low cost producer in all markets in which it participates. The company is committed to providing award-winning products, customer support and reliability to meet the world’s growing demand for information storage. Seagate can be found around the globe and at www.seagate.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.

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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 Media 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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