Wave Systems to Feature Trusted Computing Solutions at 2005 U.S. ARMY DOIM Conference

Lee, MA — August 22, 2005 — Wave Systems Corp. (NASDAQ:WAVX) today announced its EMBASSY® Trust Suite solutions will be demonstrated August 23-25 at Booth 1540 at the 2005 DOIM Conference, co-sponsored by AFCEA International and the U.S. Army Directorate of Information Management. The conference will be held at the Broward County Convention Center, Ft. Lauderdale, FL.

"Wave believes its trusted computing software suite offers secure, easy to use, easy to manage solutions for protecting computer data for a range of government and military applications," said Steven Sprague, Wave president. " Wave’s advanced solutions are designed to deliver biometric authentication, smart card authentication, password authentication and machine authentication of a user’s personal computer to a government or enterprise server. Wave has designed these trusted computing solutions to give Army information management administrators more flexibility and increased options in managing its data networks such as in FiXs and DCCIS environments ."

Wave is a founding member of the Federation for Identity and Cross-Credentialing Systems, Inc. (FiXs). The non-profit federation is a coalition of industry and associations that have created and deployed an interoperable identity cross-credentialing network that is FIPS 201, PIV I compliant. The FiXs network is based on a set of operating rules, interface specifications and a supporting infrastructure that enable it to interoperate with the Defense Identification and Cross-Credentialing System (DCCIS). This system interoperability allows trusted credentials issued by FiXs members to be authenticated at Department of Defense (DoD) sites and DoD employee credentials to be authenticated at industry sites. Industry members’ credentials can also be authenticated at other industry members’ sites. As a founding member, Wave is taking a leadership role in this landmark federation.

At the forum Wave will highlight its trusted computing solutions for the government, homeland security and national defense markets, including its EMBASSY Trust Suite software and its Key Transfer Manager. Wave’s trusted computing solutions work with a Trusted Computing Group (TCG)-compliant Trusted Platform Module (TPM) — a chip embedded inside a PC. Millions of PCs have been shipped by the industry with TPMs installed. A TPM provides the resources used by Wave’s EMBASSY software to implement secure functions within a PC.

Wave’s EMBASSY Trust Suite, developed to TCG specification and designed to be compatible with the Microsoft Office® environment, is designed to deliver a variety of PC-related security and productivity tasks, in an intuitive, easy-to-understand format. The hallmark of EMBASSY® Trust Suite solutions is usability — designed to be easy to enable, easy to use and easy to manage by IT administrators. Wave’s Key Transfer Manager is designed to help backup and protect the hardware encryption keys.

More information about EMBASSY Trust Suite products is available through Wave Systems at www.wave.com/products/ets.asp.

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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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