MEDIA ADVISORY

FDIC Report Finds Trusted Platform Module (TPM) Technology Provides One Alternative for Mitigating ID Theft in Financial Services Industry

Wave Systems EMBASSY® Trust Suite Secure Software for Trusted Computing Enables TPM to Help Plug Security Breaches

Lee, MA — June 28, 2005 —

Issue: The Federal Deposit Insurance Corporation (FDIC) on June 27, 2005 issued a supplement to a study that discusses a variety of new technologies that could be used to make Internet banking more secure. One technology highlighted is the Trusted Platform Module (TPM) security chip now available on personal computers. In a news release discussing this supplement yesterday, Don Powell, FDIC chairman said, “Identity theft, particularly account hijacking, continues to grow as a problem for the financial services industry and for consumers. Our review illustrates that ID theft is evolving in more complicated ways and that more can and should be done to make online banking more secure.” The supplement report can be found at http://www.fdic.gov/consumers/consumer/idtheftstudysupp/index.html

Solution: Wave Systems Corp.’s (Nasdaq: WAVX) EMBASSY Trust Suite (ETS) secure software works with the TPM security chip to provide authentication and identity management solutions.

Wave’s ETS software is either included or resold by a number of leading PC and chip manufacturers and provides applications for protecting user identity information, password vaults and strong authentication all integrated with the TPM security chip within the PC platform. The TPM is a new industry standard component built into many new desktop and laptop computers. This standard is being broadly distributed by the PC industry today. The secure chip can be used to improve the protection of personal identity information for multiple individuals including making it much more difficult for credentials and passwords to be stolen or compromised by viruses and rogue software. More information on Wave’s ETS can be found at http://www.wave.com/.

"Trusted computing meets the general need for improving security in the financial services industry and helping consumers in the battle against hackers and identity theft," said Steven Sprague, Wave president and CEO. "Wave offers a range of solutions that can be deployed today that will enhance the quality of a user’s online banking experience. These solutions include authentication, password protection, digital signature and key management."

Experts Available: Steven Sprague, Wave president and CEO and other experts on trusted computing are available to discuss these important developments. For more information contact John Callahan, Wave Systems, 413-243-7029 or jcallahan@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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