Wave Systems Salutes the U.S. Army’s New Security Requirements for Their Desktop and Mobile PC Purchases by Specifying Trusted Computing Security Chips

Lee, MA — February 6, 2006– Wave Systems Corp. (NASDAQ:WAVX www.wave.com) salutes the U.S. Army for its release on Feb. 3 of the new Consolidated Buy-2 (CB2) Desktop and Notebook minimum specifications for Army customers as published by the Army Small Computer Program. The specific publication link is https://ascp.monmouth.army.mil/scp/news/currentnews.jsp#2214 .

The new published Army specification details a requirement for desktop and laptop personal computers to be equipped with new open security chip hardware called the Trusted Platform Module (TPM). The TPM provides a very low cost hardware security solution that can be used to enhance the security and integrity of the computer.

"The Trusted Platform Module provides the U.S. Army with an important new tool to enhance the security of their network," said Steven Sprague, president and CEO, Wave Systems. "Wave salutes the U.S. Army for requiring new PCs to be equipped with this readily available hardware security chip capability. By specifying TPMs in new laptops and desktops, the Army can now take advantage of this technology as part of their overall cyber-security architecture.  

"The software to support broad deployment of the TPM is here today. Wave’s EMBASSY® Trust Suite is designed from the ground up to bring important security applications and services to TPM-enabled PCs. The EMBASSY platform is designed to deliver network policy management, data protection, biometric authentication, smart card authentication, password authentication and machine authentication of a user’s personal computer to a server," he said. "These are just the type of applications and capabilities that the Army could use to secure their vital data networks and platforms, and we are hopeful that this development will present additional market opportunities for Wave’s EMBASSY Trust Suite solutions."

Wave’s EMBASSY technology provides the administration tools that enable the management of a large deployment of TPM-enabled PCs. 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, including Windows Server products and Active Directory.

"Trusted computer users have available from EMBASSY technology 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," Sprague said.

With a TPM-enabled PC, here are some capabilities to immediately improve data security in a network or on a single PC platform:

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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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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