Wave Systems Launches First Enterprise-Class Secure Software Solutions Suite for Trusted Computing Market

Wave’s EMBASSY® Software Platform Delivers Flexible and Cost Effective Trusted Computing Solutions to Papa Gino’s New England Restaurant Chain

Lee, MA — September 26, 2005 — Wave Systems Corp. (NASDAQ:WAVX) announced today that the next version of Wave’s secure software platform, EMBASSY Trust Suite 5.0 and the EMBASSY Enterprise Authentication Server, is now available for trusted computing for business and government applications. New and improved trusted computing features include network policy management, data protection, biometric authentication, smart card authentication, password authentication and machine authentication of a user’s personal computer to a server.

Wave’s newest EMBASSY platform capabilities include sophisticated policy management capabilities delivered by the authentication server. The EMBASSY software is designed to allow an IT manager to set varying security policies in a business, so that one department, such as accounting or legal, could be required to logon to trusted computers using biometric sensors, while other departments, such as shipping, could continue using passwords and or smart cards or the TPM itself using PKI certificate authentication. Using the EMBASSY platform, IT managers can change the departmental security policies as needed.

"We have evaluated many of the trusted computing solutions available from the PC industry and believe that Wave’s EMBASSY software was the best solution available," said Chris Cahalin, network manager for Papa Gino’s Holdings Corp., who is responsible for the corporate network comprising more than 400 D’Angelo Sandwich Shops and Papa Gino’s restaurants. "We are especially pleased with our ability to easily encrypt files for overnight backup and be able to keep the encryption keys safely stored in a separate server. If those back up files are ever lost or stolen, as we have seen reported in the news about other companies recently, the data would be safe because of the encryption. We are using Wave’s trusted computing technology for applications today, from data protection to policy management to password management. We believe it is a superior solution."

Wave’s EMBASSY software is designed to support the next generation security chip hardware, called Trusted Platform Module (TPM) 1.2 . The computer industry has shipped millions of PCs embedded with the Trusted Computing Group-standard TPM 1.1 chip and now shipping is the next generation 1.2 TPM chip. Wave’s EMBASSY platform supports both standards.

TPMs help enable secure services and applications. Wave has designed its EMBASSY technology to work with all commercially available TCG-compliant TPMs. Wave’s EMBASSY platform is also designed to be compatible with the Microsoft Office® environment, and to facilitate a variety of PC-related security and productivity tasks.

"Now trusted computer users have available a simplified yet enhanced level of security protection through the implementation of strong authentication capabilities that make available biometrics, smart cards, passwords or the TPM, all tailored to specific business needs," said Steven Sprague, president and CEO, Wave Systems.

"In addition to the enhanced single client solutions, Wave has available new authentication server capabilities for secure logon to Windows domains, computer platform attestation, policy management solutions across an enterprise domain and new key management capabilities," said Brian Berger, Wave executive vice president, marketing and sales.

Wave’s EMBASSY Trust Suite is designed to be integrated with Wave’s key backup server solution, Key Transfer Manager Enterprise Server. EMBASSY technologies are designed to provide IT administrators the tools needed to configure, manage and backup their trusted PCs.

Important attributes of Wave’s EMBASSY Trust Suite 5.0 include:

Wave is a member of the Trusted Computing Group (TCG), an industry organization dedicated to embedding trust and security more broadly into computing platforms and devices.

More information on Wave’s ETS software 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.
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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