Wave Systems’ Partner Reports It Has Shipped More Than One Million Devices With Wave’s Secure Software Technology

Lee, MA — July 11, 2005 — Wave Systems Corp. (NASDAQ:WAVX) today announced that one of its partners has reported that it has shipped more than one million copies of Wave’s EMBASSY® secure software technology.

Specifically, STMicroelectronics announced today volume production of the ST19WP18 Trusted Platform Module (TPM), and confirmed that more than one million of the TCG (Trusted Computing Group) 1.2 devices have already been delivered in Q2 2005 to a number of major PC motherboard makers across the world. Embedded in a personal computer, a TPM increases security by enabling authentication of both the PC and its user, as well as providing secure storage for critical data and passwords.

The ST19WP18 TPM includes the Wave Systems EMBASSY Security Center (ESC) and Cryptographic Services Provider (CSP), powerful TPM management and cryptographic support utilities for PC applications. The Wave Systems CSP is compliant with Microsoft’s crypto-API specification.

For further information on ST solutions, please go to http://www.st.com.

More information on Wave’s EMBASSY secure software solutions is available 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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For more information please contact:

Wave Media Contact:
Michael Wheeler
Wave Systems Corp.
Wave Investor Relations Contact
David Collins, Richard Land
Catalyst Global LLC

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