Wave Customer, Papa Gino’s, Named One of Network World’s Enterprise All-Star Winners

Papa Gino’s Restaurant Chain Leverages the Trusted Platform Module Security Chip
 to Achieve a New Level of Security for its Network

Lee, MA– September 28, 2006 — Wave Systems Corp. (NASDAQ:WAVX www.wave.com) announced today that one of its customers, Papa Gino’s Inc. and D’Angelo Sandwich Shop Inc., has been named a winner in the prestigious 2006 Network World Enterprise All-Star Awards. Of the hundreds of entries received, Network World selected 40 winners, culled from 75 finalists and nearly 200 entries total. Winners represent a variety of vertical markets, including education, financial services, healthcare and hospitality. The full Network World article is available online at http://www.networkworld.com/allstar/2006/092506-chip-security-papa-gino.html .

Network World cited Papa Gino’s for its use and advancement of the Trusted Platform Module (TPM) security chip found in every Dell laptop or desktop the company buys. Through the use of the TPM, Papa Gino’s has created a new level of security to protect its business data, help guard against identity theft for its employees and customers, keep sensitive employee and customer data secure and more. When the chip is used with Wave Systems’ EMBASSY® Trust Suite (ETS) it allows Papa Gino’s to successfully execute its strategically architected security plan right out of the box.

"Being named an Enterprise All-Star for our use of trusted computing in the September 25, 2006 issue of Network World is a great honor," said Chris Cahalin, network manager for Papa Gino’s. "The TPM and Wave software are amazing and have truly secured our network. It is such a well thought-out, elegant solution that we can’t spread the word fast enough."

The TPM is a unique, standards-based hardware security chip that handles various advanced security tasks on a computer. When combined with Wave Systems’ ETS software, the TPM performs a variety of business security features, such as 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.

"Wave, along with the other members of the Trusted Computing Group, has a clear vision of the next generation of security, and Papa Gino’s selection as a Network World Enterprise All-Star is a testament to this vision," said Steven Sprague, president and CEO, Wave Systems Corp. Papa Gino’s use of Wave software to leverage the security of the TPM represents an outstanding example of how Wave customers are truly taking advantage of this new level of security."

About Network World ‘s 2006 Enterprise All-Star Award
The Network World Enterprise All-Star Award program recognizes exceptional use of network technology to further enterprise business objectives. For the 2006 award—the second annual— Network World editors selected 40 enterprises IT organizations representing the best, most innovative application of network technologies in eight categories, such as Network Management, Security and Wireless. These award-winning network IT projects are profiled in Network World’s special edition Signature Series Enterprise All-Star Issue published September 25. The All-Star Web site will launch coincident with the print publication. At that time, you can find it at www.networkworld.com/allstar/2006 .

About Papa Gino’s Holdings Corp.

Papa Gino’s Holdings Corporation, Inc. is committed to building upon the legacy of the founders’ principles and values to provide high-quality products, attentive service, clean, convenient, attractive restaurants, and a premium value experience for every guest. The company culture, which is characterized by our values, a strong work ethic and the fair treatment of people, includes a large number of people who have literally spent their entire working lives in these restaurants, keeping the passion for excellence alive. With more than 200 D’Angelo Grilled Sandwiches restaurants and nearly 170 Papa Gino’s restaurants, they serve more than 50 million guests every year, enjoying tremendous loyalty from both employees and guests.

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, Inc.
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.