Wave to Demonstrate Enterprise Data Security Solutions at Cartes Show in Paris, Nov. 7-9

Lee, MA — November 6, 2006 — Wave Systems Corp. (NASDAQ:WAVX www.wave.com) announced today that it will demonstrate its EMBASSY line of enterprise security software at the Cartes IT Security trade show, November 7-9, at the Centre des Expositions in Villepinte, France ( www.cartes.com ).

Wave representatives will be on hand at Infineon’s booth (4J 002) as fellow members of the Silicon Trust organization, created by Infineon in 2003 and comprised of other security partners. Wave will demonstrate the advanced functionality of its EMBASSY Trust Suite 2.3 software which, when combined with an industry standard security chip called a trusted platform module, enables organizations to protect data, manage passwords and perform strong pre-boot authentication.

Protection of sensitive enterprise and customer data has become a high priority and the focus of many new government and industry regulations. Many enterprises have been looking for more integrated data security features that are easy to use and are designed to provide constant protection. In addition, many enterprises need the assurance that encrypted data can only be accessed by authorized and authenticated users.

In addition, Wave will also have a model of Seagate Technologies’ Momentus 5400 full disc encryption hard drive on hand. Last week, Seagate announced the availability of its DriveTrust Technology, a new security platform designed to protect data on the hard drive. Support for the hardware-based security platform is integrated into Wave’s EMBASSY Trusted Drive Manager, a plug-in component to the EMBASSY Trust Suite, designed to work in conjunction with Seagate’s DriveTrust to offer comprehensive security functions, including drive activation, drive security policy setup, automated key and password management, strong access control, and instant data destruction for repurposing or drive disposal.

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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:

Wave Systems Corp.
Michael Wheeler

Wave Systems Europe
Bruno Leconte
Wave Media Contact:
Schwartz Communications, Inc.
Michael Schultz /Katie Potter
Wave Investor Relations Contact:
David Collins, Ratula Roy
Catalyst Global LLC

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