Wave Systems Demonstrates Secure E-Commerce Capabilities at Cartes Show in Paris

Lee, MA — November 14, 2005 — Wave Systems Corp. (Nasdaq: WAVX – www.wave.com) will demonstrate at the Cartes IT Security trade show, November 15-17, Exhibition Centre, Paris Nord Villepinte, a Trusted Computing Group (TCG) compliant secure on-line payment capability developed by Groupement des Cartes Bancaires (CB).

At the STMicroelectronics booth, Hall 3E 014, Wave Systems will demonstrate a trusted computing-based secure internet payment process that authenticates a payment card user to the bank, using Wave software development tools and server infrastructure. This demonstration is a proof of concept on how a potential customer using a home PC can do an on-line e-commerce transaction securely.

Working with Wave, CB developed this proof of concept taking advantage of the TCG security framework for enabling trusted PC solutions. The TCG building block open security specifications enable more secure data storage, business practices, and commerce transactions while protecting privacy and individual rights. However, application developers can face numerous challenges when attempting to implement applications compliant to TCG-standards. To address these challenges, Wave made available a standard TCG-Enabled Toolkit for software development.

The Wave TCG-Enabled Toolkit is a compilation of tools designed to help application providers write new applications, or modifying existing ones, to function on TCG-compliant personal computers having Trusted Platform Module (TPM) security chips and to take advantage of Wave’s server infrastructure. For the Cartes demonstration, the CB on-line payment application operates on a PC that has an ST TCG 1.2 TPM security chip.

"As millions and millions of PCs ship with TPM security chips, it is becoming more compelling to investigate how these PCs, in homes and businesses, could be used to bring a higher level of security to on-line transactions and web services," said Loys Moulin, head of technology and specifications at CB.

"We are pleased to see interbanking leaders such as CB studying potentially new applications around our TPM solution for trusted computing," said Alain Jarre, Consumer and IT business unit director, STMicroelectronics. "ST was the first to supply integrated TCG 1.2 compatible TPM chips, evaluated to Common Criteria EAL4+, of which more than 4 million have been delivered to major PC/motherboard manufacturers."

In the U.S., several federal government groups have recently expressed strong support for multifactor authentication solutions to be used by financial institutions offering online banking services. Organizations addressing the issue include the Federal Financial Institutions Examining Council, an umbrella group for regulators, and the Federal Deposit Insurance Corporation (FDIC). The FDIC earlier this year identified the TPM security chip capability in a PC as a solution to problems including identity fraud and online theft.

Wave’s EMBASSY® software platform, working with the TPM chip, provides a very low cost solution to take advantage of the Trusted Computing standard for strong authentication.

"With TPM-enabled security built in to many new computers today, online banking customers could find this a readily available, easy-to-use security solution — significantly superior to user name and password security commonly in use today," said Steven Sprague, president and CEO, Wave Systems. "Because tens of millions of trusted computers using the TCG standard have shipped, the banking industry can benefit from the availability of a new standardized solution and the rapid rollout of this improved technology to their customers. The trusted computer solution is designed to securely store a user’s banking credentials and protect them from both hackers and phishers. We are pleased that Wave’s EMBASSY technology is being identified as a solution to a significant financial services security problem."

"Secure online payment is a global issue facing industry. This demonstration is example of how trusted computing can have an important impact on the secure e-commerce market specifically in the EU," said Bruno Leconte, Wave vice president, Europe Middle East and Africa. Customers who would like more information about this secure payment capability should contact Leconte at bleconte@wavesys-emea.com.

More information about Wave’s software development tools and EMBASSY® secure software technology for trusted computing is available through Wave Systems at www.wave.com/products/ets.asp.

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.

Safe Harbor for Forward Looking Statements

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.

All brands are the property of their respective owners.

For more information please contact:

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

Stay up-to-date on news relating to Wave. Join our email list by putting your email address in the space below.