Wave Systems to Demonstrate Trusted Computing Security and eSign Transaction Management Suite at ACORD LOMA Insurance Systems Forum for Businesses that Demand Security

Las Vegas, NV — May 19, 2006 — Wave Systems Corp. (NASDAQ:WAVX www.wave.com) a leader in developing Trusted Computing applications, announced today that it will be demonstrating insurance industry applications of the Company’s trusted computing security technology, including electronic signature and document process management solutions, at the ACORD LOMA Insurance Systems Forum, May 22-24 (Mandalay Bay Resort, Booth #1115). Wave Systems offers the insurance industry practical, easy-to-use applications for enhanced PC security utilizing the Trusted Platform Module (TPM) security chip. Wave’s software will demonstrate strong authentication with biometrics, smart cards or TPMs, and will showcase advanced applications for digital signatures, document protection, password management, TPM management and robust key management.

"Trusted computing is the security industry’s new standard for enforcement of advanced security, authentication and data protection, and it’s important that the insurance industry understand the power of the new hardware security chips now shipping in nearly every professional-class PC on the market," said Steven Sprague, president of Wave Systems. "The power of trusted computing has widespread impact in the financial and insurance industries, offering a new level of strong authentication for remote agents that provides a proven foundation of trust for electronic transactions."

Wave will demonstrate its EMBASSY Trust Suite client and server technology, designed to deliver solutions compliant with the Trusted Computing Group specifications for trusted computing. Wave’s EMBASSY Trust Suite adds capabilities for security policy management, data protection, password management and strong pre-boot authentication. The benefits of these applications for reducing network security problems include mitigating password, data and personal information theft, application security, strong wireless authentication, secure email and more—all while increasing productivity. The entire solution is standards based, interoperable with known business applications and very easy to deploy and use in an enterprise environment.

Wave will also be showcasing its eSign Transaction Management Suite (eTMS), a popular solution for the insurance industry that enables organizations to manage business processes and transactions entirely online. eTMS automates business policy compliance and reduces the need for time-consuming and costly traditional ink signatures and paper storage, or expensive traditional delivery services. With eTMS, organizations can create, sign, store, access and manage the lifecycle of legally binding electronic documents and records.

"Cost savings have driven significant demand for electronic signatures in the insurance and financial industries, but security and convenience have been the real barriers to widespread adoption," said Scott Schrader, president of Wave’s eSign Systems. "By leveraging trusted computing, the new standard in security, we’ve taken e-signatures to a new level of confidence suitable for even the largest financial transactions. But the real breakthrough Wave’s eTMS signing process brings to the table is intelligent, dynamic transactions that integrate requirements and parameters such as document expiration, designation of signers, transaction specific language, and consumer consent right into an organizations existing documents and processes."

Wave’s eTMS simplifies use of e-signature applications by customers—eliminating the need for additional plug-in downloads common in signing applications today. Insurance and financial services companies can integrate eTMS into existing applications such as CRM or document management systems to create new interfaces for signers, so the experience is seamless and appears as an extension of existing processes and documents. The enhanced signing capability includes secure authentication processes that can be customized based on the risk of the transaction. Stronger security options include signatures based on PKI certificate authentication and signing, including support for the Trusted Computing Group’s Trusted Platform Module security chip. Wave’s eSign Transaction Management Suite is designed to be integrated into this trusted computing environment.

Financial services markets, from insurance to mortgage and real estate, bear different regulatory and compliance requirements. Wave’s eSign Transaction Management Suite allows organizations to deliver customized solutions by using the modular pieces of the eTMS. The suite consists of SmartSignature, SmartSignature Server, SmartSAFE, SmartIdentity™ Services, SmartConnect, the SMARTDoc™ Mortgage Banking Module and the EMBASSY® Trust Suite of software solutions. The eTMS suite provides the functionality necessary to meet both technical and legal requirements of transactions (signing and record retention) governed by ESIGN, UETA, Revised Article 9 of the UCC, SPeRS and GPEA. For more information on Wave’s eSign Transaction Management Suite, visit www.eSignSystems.com. For more information on Wave’s suite of trusted computing applications, 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.

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.

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For more information please contact:

Wave Media Contact:
Schwartz Communications
Mike Schultz/Katie Potter
781-684-0770
wavesystems@schwartz-pr.com

Kelly Purcell
Wave eSign Systems
kpurcell@esignsystems.com
602-840-1199

Wave Investor Relations Contact
David Collins, Richard Land
Catalyst Global LLC
212-924-9800
wavx@catalyst-ir.com

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