Wave Systems Demonstrates EMBASSY® Strong Authentication Technologies at the DoD Public Key Enabling Trade Show

Lee, MA — November 8 , 2005 — Wave Systems Corp. (NASDAQ:WAVX) announced today that it is demonstrating its EMBASSY secure software technologies featuring strong authentication capabilities at the Department of Defense Public Key Enabling (DoD PKE) trade show at the Atlanta Hilton, Atlanta, Georgia, today and tomorrow.

The conference focuses on enabling federal system administrators, workgroup managers, and users to get the most out of Public Key Infrastructure, featuring demonstrations, hands-on training sessions, and opportunities to interact with DoD and industry experts.

Wave’s EMBASSY software supports the next generation Trusted Computing security chip hardware called the Trusted Platform Module (TPM) 1.2. The computer industry has already shipped millions of PCs embedded with the Trusted Computing Group-standard TPM 1.1 chips and is now shipping next generation 1.2 TPM chips. 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 compatible with the Microsoft Office® environment, and facilitates a variety of PC-related security and productivity tasks.

At the conference, Wave is demonstrating the hardening of standard Department of Defense PKI systems. Using TPMs, Wave will demonstrate issuing a standard, medium assurance certificate (X.509 version 3 PKI class 3) which is commonly used for network and application authentication. The TPM will bind the certificate to the hardware platform, creating a more tamper resistant certificate. This is the first time that fully certified (FIPS 140-2 L2) TPMs will be shown in this security capacity. Wave is working with External Certificate Authorities (ECA) approved by the DoD C.I.O. to more broadly disseminate this solution.

"Working with TPM security chip enabled PCs, Wave’s EMBASSY software technology can strongly authenticate both the PC and the user in a government or enterprise network," said Steven Sprague, president and CEO, Wave Systems. "Network administrators can benefit from better authentication capabilities by using available biometrics, smart cards, passwords or the TPM, all tailored to specific security needs."

Beyond its importance to the DoD PKI environment, Wave’s EMBASSY trusted computing solutions are also designed to solve the real world authentication and identity management problems facing federal, state and local government agencies.

For more information about Wave’s EMBASSY strong authentication technologies, please visit 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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