CRYPTAS to Distribute Wave’s EMBASSY® Security Software for Trusted Computing to Businesses in Austria, Germany and Switzerland

Vienna, Austria and Lee, MA, USA — October 11, 2005 — Wave Systems Corp. (NASDAQ:WAVX) and CRYPTAS IT-Security & Media GmbH today announced that CRYPTAS will distribute Wave’s EMBASSY Trust Suite client and server software to businesses interested in trusted computing solutions for personal computer security.

CRYTPAS will distribute Wave’s EMBASSY technology in Austria, Germany and Switzerland.

Wave’s EMBASSY platform is designed to deliver solutions compliant with the Trusted Computing Group (TCG) building block specifications for trusted computing. Tens of millions of PCs have been shipped by the computer industry embedded with a TCG-standard chip, called the Trusted Platform Module (TPM). TPMs serve as a platform for secure services and applications — offered by companies such as Wave. Wave has designed its EMBASSY software to work with all commercially available TCG-compliant TPMs. The hallmark of the EMBASSY platform is usability — designed to be easy to enable, easy to use and easy to manage by IT administrators.

"Trusted Computing can deliver immediate value to enterprises seeking to more effectively authenticate users of a network and to improve data protection," said Stefan Bumerl, general manager, CRYPTAS. "We believe Wave’s EMBASSY client and server software offers the best available solutions for enterprise data protection, identity protection, access control and policy management."

"CRYTPAS is a leading distributor of security products in central Europe and focuses on secure user authentication, data protection and digital signatures, all areas addressed by our advanced EMBASSY platform. CRYPTAS can be a powerful channel for Wave to reach end customers, resellers and solution partners," said Bruno Leconte, Wave vice president, sales, Europe, Middle East and Africa.

Wave’s EMBASSY platform is designed to be compatible with the Microsoft Office® environment, and to deliver a variety of PC-related security and productivity tasks, in an intuitive, easy-to-understand format.

EMBASSY solutions include Document Manager for securing files and folders, SmartSignature for digital signature capability for secure electronic contracts, and Private Information Manager for secure storage and management of user names, passwords and personal information. Private Information Manager is designed to intelligently retrieve data for use in web pages, logging into web sites, or for filling forms.

Also available is Wave’s Key Transfer Manager, an enterprise software solution for client or server that is designed to help backup and protect the hardware encryption keys used for critical personal computer data.

More information about Wave’s EMBASSY solutions is available through CRYTPAS at http://www.cryptoshop.com or Wave Systems at www.wave.com/products/ets.asp.

About CRYPTAS
CRYPTAS and CRYPTOSHOP.COM is the first address for smart card based IT-security products and solutions in central Europe. The main focus is on secure user authentication, data encryption, single-sign-on and digital signatures. Based in Vienna, Austria, CRYPTAS delivers products around Europe to end customers, resellers and solution partners. For more information, please visit our Web site at www.cryptoshop.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, Richard Land
Catalyst Global LLC
212-924-9800
wavx@catalyst-ir.com

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