Wave Completes Licensing with Intel for EMBASSY® Trust Suite Software with New Intel Desktop Motherboards

Lee, MA– September 5, 2006 — Wave Systems Corp. (NASDAQ:WAVX www.wave.com) today announced the execution of an amendment to its Software License and Distribution Agreement with Intel®. The amendment permits Intel® to ship the next version of Wave’s EMBASSY® Trust Suite with Intel’s new Intel® P965 Express Chipset-based Intel® Desktop Boards for trusted personal computers . Wave’s EMBASSY® Trust Suite (ETS) 5.1 is a new and simplified collection of practical, easy-to-use applications which leverage the Trusted Platform Module (TPM) hardware security chip. Wave’s ETS is combined with the TPM and bundled with Intel® Desktop Boards DQ965WC , DQ965CO and DQ965GF to provide a final layer of security. Upon the commencement of Intel’s shipment of products under this new amendment, the number of Intel Desktop Boards on which Wave’s products are shipped will increase to 15. The agreement does not provide for guaranteed minimum or maximum shipped quantities or royalties.

Wave’s ETS software is a trusted applications and services software security suite designed to be compliant with Trusted Computing Group (TCG) specifications. The computer industry has shipped tens of millions of PCs embedded with TPMs, the Trusted Computing Group-defined, next-generation security chip hardware. Wave has designed its security applications to work with all commercially available TPMs, including the version 1.2 chip.

"Wave’s solutions are designed to leverage the TPM for stronger, standards-based network access, authentication, data protection and password management solutions that business users can leverage immediately for security and management," said Brian Berger, executive vice president, marketing and sales, Wave Systems. "We are pleased to have completed this amendment to include Wave’s 4 th generation of EMBASSY solutions on Intel’s products. The ETS 5.1 is a new simplified set of applications that will be bundled with desktop boards based on the Intel P965 Express Chipset family that complements Intel® vPro™ technology."

For more information about Wave’s trusted applications and services, please go to: http://www.wave.com/products/ets.asp . For more information about the new Intel desktop boards visit: http://intel.com/design/motherbd/ .

Wave is a member of The Trusted Computing Group ( www.TrustedComputingGroup.org ), an industry organization dedicated to embedding trust and security more broadly into computing platforms and devices.

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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:

Company:
Wave Systems Corp.
Michael Wheeler
413-243-7026
mwheeler@wave.com
Wave Media Contact:
Schwartz Communications
Tom Bain/Katie Potter
781-684-0770
wavesystems@schwartz-pr.com
Wave Investor Relations Contact
David Collins, Ratula Roy
Catalyst Global LLC
212-924-9800
wavx@catalyst-ir.com

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