Wave to Present at RSA Europe ’06 on Enterprise Security and the Role of Trusted Computing

Will Demonstrate Secure Logon, Data Protection and Authentication Solutions

Lee, MA– October 19, 2006 — Wave Systems Corp. (NASDAQ:WAVX www.wave.com) announced today that Wave Executive Vice President of Marketing and Sales, Brian Berger, and Wave Vice President EMEA Bruno Leconte, will be featured speakers at RSA Europe 2006, October 23-25, at the Nice Acropolis Convention Centre, Nice, France.

On Monday, October 23rd, in the pre-conference seminar, "Fact or Fiction: The Trusted Enterprise," Berger and Leconte will discuss the state of security solutions with fellow members of the Trusted Computing Group (TCG), an industry organization of more than 140 members that have developed industry standards to embed hardware-based trust and security more broadly into computing platforms and devices. The seminar will take place at 10:30 a.m. in the Gallieni AB room.

On the show floor, in stand #42, Wave will demonstrate trusted computing solutions utilizing a Trusted Platform Module (TPM) security chip, integrated with Active Directory for client/server secure login to the domain using multi-factor authentication. These solutions are designed to offer the enterprise a low cost and very secure answer to the problems of strong authentication and access control. By leveraging technology the enterprise is already buying, the solutions can help an enterprise reduce the total cost of deploying and managing a security solution. In addition, Wave will show TPM-based techniques for protecting credentials such as passwords, fingerprint biometrics and smartcards.

Wave will also demonstrate real-world examples of data protection solutions in the context of "data at rest" and "data in motion." Each demonstration uses a different technology that works independently or in combination with others, including a TPM-protected, Encrypted File System (EFS); file and folder encryption using the Document Manager vault feature within Wave’s EMBASSY® Trust Suite software; and capabilities with Seagate for the Trusted Drive management of full disk encryption. All three of these Wave solutions are managed by an enterprise-ready, key back-up and recovery system that is integrated with Active Directory and provides capabilities for auditing, policy management, role-based access on the server and the full automated management of encryption keys.

Wave will also present a secure, TPM-based VPN login capability designed to allow IT professionals to ensure that only approved authenticated machines may login to the network or domain using group object policies that are enforced from the server.

About Wave Software

Wave’s EMBASSY® Trust Suite software, when combined with a hardware security chip called a Trusted Platform Module, 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.

About RSA Europe 2006

RSA® Conference Europe 2006 is the foremost information security event in Europe. Now in its seventh year, it offers a full and productive program of educational sessions and exhibits – plus an opportunity to network with information security professionals from all organizational levels – including IT staff and managers, developers and senior executives. With a reputation for its high-caliber of speakers and unbiased content, it provides a unique opportunity to gain the latest visions and trends along with the information and education needed to keep current and stay ahead of information security threats.

About The Trusted Computing Group

TCG is an industry standards body formed to develop, define, and promote open standards for trusted computing and security technologies, including hardware building blocks and software interfaces, across multiple platforms, peripherals, and devices. TCG specifications are designed to enable more secure computing environments without compromising functional integrity with the primary goal of helping users to protect their information assets from compromise due to external software attack and physical theft. More information and the organization’s specifications are available at the Trusted Computing Group’s website, 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.

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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, 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

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