Wave to Support Trusted Computing Group’s Security Specifications for Mobile Phones

Pledges to Extend EMBASSY® Trust Suite Functionality in Line with MTM Standards

Lee, MA– September 13, 2006 — Wave Systems Corp. (NASDAQ:WAVX www.wave.com) a leading supplier of security software products and services for Trusted Computing and a founding member of the Trusted Computing Group (TCG) ( www.trustedcomputinggroup.org ), announced plans to extend its EMBASSY® Trust Suite software in support of the newly published TCG security specifications for mobile phones. The announcement of the open, non-proprietary security specifications called Mobile Trusted Module (MTM) came this week at the Cellular Telecommunications & Internet Association Conference in Los Angeles.

Once implemented, the industry-endorsed standards will enable users to strongly authenticate their mobile devices to their PCs in order to replicate sensitive personal information, such as address books and digital wallets, as well as to determine the "trustworthiness" of a given mobile phone. The specifications also call for the use of a common key management infrastructure for the protection and backup of passwords and important data.

"As mobile phones have evolved into multi-function communications devices with robust connectivity to voice, e-mail, corporate networks and the Internet, the requirement for stronger security has never been greater," noted Lark Allen, Executive Vice President, Wave Systems. "The TCG mobile phone specifications represent an industry-wide effort to define an open security standard that will bring benefits to many involved with mobile devices, from the end-user to the network provider to the device manufacturer."

"Wave looks forward to working with our industry partners to deliver TCG-based support for mobile devices in addition to currently supported TPM-based PCs and trusted encrypting disk drives," he added.

With its endorsement of the mobile phone specifications, Wave has signaled its intention to adapt its EMBASSY Trust Suite (ETS) PC and server software to work with the TCG standards developed for the mobile phone arena. Wave’s ETS is now designed to help users manage the Trusted Platform Modules (TPMs) on their PCs, with functionality that includes storing and recalling passwords and logon information, document protection, digital signatures and robust key management. The MTM operates in a similar fashion as a TPM, but has been adapted for mobile phones.

About the TCG’s Mobile Trusted Module (MTM) Specifications:
The MTM specification represents a first step towards a stronger security solution for enhanced user privacy and reduced risk of handset theft. Moreover, the specification should enable the development of advanced applications and services within the mobile industry environment.

MTM is an open specification for common TCG security building block functions which can be used in a mobile phone security solution. A phone that employs this technology would typically contain multiple MTMs, all of which provide similar functionality to existing TPMs and some of which have additional functionality to boot parts of a phone into a preset state, as described below. The MTM includes many of the same requirements as TCG specifications for TPMs for personal computers. However, the MTM specifications also provide new functions which have been developed specifically for mobile devices. Some adaptations are a response to restrictions inherent in today’s phone technologies.  

MTMs built using the TCG specification are called Mobile Local-owner Trusted Modules (MLTMs). Additionally, a second type of MTM implementation enables the phone to boot into preset states. These MTMs are called Mobile Remote-owner Trusted Modules (MRTMs), since they enable remote entities (such as the phone manufacturer and the cellular network provider) to preset the operation of some parts of the phone (such as access to the 15-character International Mobile Equipment Identity -IMEI and the cellular network).

The TCG aim has been to develop safer mobile platforms and establish an open industry standard for the increasingly sophisticated mobile phone ecosystem that offers added value to private users, businesses, IT companies and networks. In a nutshell, the Mobile Trusted Module is a verifiable security component that enables a trusted computing framework for mobile devices in the environment in which they are used.

Copies of the TCG Mobile Phone specification can be found at www.trustedcomputinggroup.org.

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.

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.

All brands are the property of their respective owners.

For more information please contact:

Company:
Wave Systems Corp.
Michael Wheeler
413-243-7026
mwheeler@wave.com
Wave Media Contact:
Schwartz Communications
Michael Schultz /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

Stay up-to-date on news relating to Wave. Join our email list by putting your email address in the space below.