Wave Systems on Winning Team with Operational Research Consultants, Inc. for U.S. GSA Blanket Purchase Agreement Award

Lee, MA — January 10, 2006– Wave Systems Corp. (NASDAQ:WAVX www.wave.com) announced today that the company has teamed with Operational Research Consultants, Inc. (ORC), a wholly owned subsidiary of WidePoint Corporation (OTC BB: WDPT), in connection with the first Blanket Purchase Agreement award issued under the new U.S. General Services Administration (GSA) "Authentication Products and Services" Category Special Item No. (SIN) 160 32, part of existing IT Schedule 70 (the "ORC ACES BPA"). The ORC ACES BPA is an indefinite delivery/ indefinite quantity (ID/IQ) program that has total ceiling value of $100 million.

Under the BPA award ORC will provide certified credentialing for identity management solutions to federal, state and local governments. In connection with an agreement between ORC and Wave, Wave expects ORC to provide federal government authorized Access Certificates for Electronic Services (ACES) capability, in combination with Wave’s EMBASSY® Trust Suite secure software technology for use with compliant public key infrastructures. The terms upon which Wave will participate in the project are subject to the completion of a subcontract to be entered into between Wave and ORC.

The BPA recognizes ORC as a fully operational ACES and Shared Services Provider (SSP) as well as a provider of Homeland Security Presidential Directive (HSPD-12) products and services. Further, the BPA also recognizes the ORC team as the only provider of Personnel Identity Verification (PIV) ready solutions for HSPD-12 products and services. The combined products of ORC and Wave offer HSPD-12 ready solutions for both "logical" and "physical" security.

"ORC is working with Wave to make trusted computing solutions embedded with External Certificate Authority (ECA) and ACES digital certificates available to all branches of government," said Daniel Turissini, president of ORC. "The combination of Wave’s EMBASSY software technology integrated with ORC’s Trusted Third Party services provides another tool to ensure high levels of Information Assurance technologies in the ongoing efforts to protect personal information within the federal government."

"Authenticating a computer user into a network by using methods more secure than passwords is a continuing effort for network administrators within government and enterprises," said Steven Sprague, president and CEO, Wave Systems. "With the ORC ACES BPA, government administrators will now have easy access to Class 3 PKI certificates that can be used within a Trusted Computing-based framework: a network of personal computers secured by industry standard Trusted Platform Modules and Wave’s powerful and secure software technology."

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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
Catalyst Global LLC
212-924-9800
wavx@catalyst-ir.com

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