Wave Systems to Demonstrate Range of Enhanced Trusted Computing Solutions for Enterprises and Government at the RSA Conference

EMBASSY® Platform’s Versatile and Secure Software Capabilities Include Remote Administration for Trusted PCs, Support for Full Disc Encryption and PC Platform Integrity

Lee, MA and San Jose, CA — February 13, 2006 — Wave Systems Corp. (NASDAQ:WAVX www.wave.com) announced it will demonstrate a wide range of new and enhanced trusted computing capabilities at the RSA Conference 2006, Booth 1407, Feb. 13-17 at the McEnery Convention Center, San Jose, CA.

The newest EMBASSY technology capabilities to be demonstrated at RSA include:

EMBASSY Remote Administration Server.
This new capability simplifies the remote administration and centralized policy management needed to provision and manage Trusted Platform module (TPM) enabled PCs within a business, enterprise or government network. Working with Microsoft’s Active Directory, the remote administration server is designed to help IT administrators remotely set up, configure and test TPM-enabled PCs.

The server enables centralized management of the advanced security functions provided by Wave’s EMBASSY Trust Suite of secure software such as password management, multifactor authentication and data protection.

The EMBASSY technology platform is designed to support hardware security features provided by TPM security chips currently shipping in millions of personal computers.

Platform Integrity and the Trusted Network Connect Architecture.
Wave is demonstrating its EMBASSY secure software technology delivering platform integrity services that enables the Trusted Network Connect (TNC) architecture (described below) interface for Platform Trust Service on a PC equipped with a TPM.

The EMBASSY platform is designed to enforce a set of policies to collect integrity information from the PC, such as the state of anti-virus software, whether the operating system has been tampered with and whether all appropriate patches have been downloaded to the PC. In the RSA demonstration, EMBASSY platform integrity technology provides these client functions in concert with IT department policies set through network equipment and software from Nortel and Juniper Networks. With this capability, PCs not meeting the pre-determined policies, such as those that do not meet the patch download requirement, can be quarantined for remediation, repaired, and then allowed access to the network.

Trusted Network Connect (TNC) is a security architecture promoted by the Trusted Computing Group (TCG) that determines the security and compliance of clients (for example, personal computers) attempting to connect to a network and provides a level of network access based on the configuration and integrity of the client. With implemented TNC, network administrators expect to have fewer security problems, lower support costs and less downtime created by poorly configured or infected client systems.

Trusted Drive Manager.
Seagate Technology and Wave are teaming at RSA to demonstrate a security solution that combines strong protection for intellectual property, personal information and other sensitive data stored on lost or stolen notebook PCs with a simple way to manage and protect encryption keys and passwords.

The demonstration consists of Seagate’s Momentus 5400 FDE, a 2.5-inch, 5400-RPM notebook hard drive that uses hardware-based Full Disc Encryption (FDE) to deliver the highest levels of data security, and Wave’s EMBASSY Security Center software. The Wave software suite, which meets security specifications established by the Trusted Computing Group, includes the Trusted Drive Manager, which provides an easy way to set up and configure the Momentus 5400 FDE drive and automated protection and management of passwords and encryption keys.

"Wave is showing significant leadership in Trusted Computing with the development of these secure software technologies," said Brian Berger, Wave’s executive vice president, marketing and sales. "We welcome additional industry partners to work with us in moving forward such critical technologies as remote administration and platform integrity technologies that enable the TCG API’s, including platform trust service.   Truly the EMBASSY platform is a strong enabler of key capabilities in the areas of data protection, authentication and client and network integrity."

Wave’s EMBASSY Trust Suite and the EMBASSY Enterprise Authentication Server deliver improved trusted computing features for enterprise and government markets. These include network policy management, data protection, biometric authentication, smart card authentication, password authentication and machine authentication of a user’s personal computer to a server.

For more information about Wave’s products and services, please go to www.wave.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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