NASDAQ Panel Approves the Continued Listing of Wave System’s 
Common Stock on The NASDAQ Global Market

Lee, MA — August 10, 2006 — Wave Systems Corp. (NASDAQ: WAVX — announced today that it has received notification from the Listing Qualifications Panel of The Nasdaq Stock Market of the Panel’s decision to continue the listing of Wave’s common stock on the Nasdaq Global Market (formerly called the Nasdaq National Market). The decision followed Wave’s regaining compliance with Nasdaq Marketplace Rule 4450(b)(4) which requires a minimum bid price of $1.00 per share. Wave completed a 1-for-3 reverse split of its common stock, effective close of business on July 25, 2006, which had the effect of enabling the Company to regain compliance with the $1.00 minimum bid price rule.
Per Nasdaq practice, Wave’s common stock is currently trading under the symbol "WAVXD" for 20 business days, following which it will revert to is normal trading symbol: "WAVX."

Steven Sprague, CEO of Wave, commented, "We are pleased that our decision to effect a reverse split has enabled us to regain compliance with the continued listing requirements of the Nasdaq Global Market. We view our continued listing on the Nasdaq Global Market as important to the strategic interests of our Company and its stockholders."

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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 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:

Gerard T. Feeney, CFO
Wave Systems Corp.
Wave Investor Relations Contact
David Collins, Ratula Roy
Catalyst Global LLC

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