Wave Systems Certifies EMBASSY® Trust Suite for HP Business Computers

Secure Trusted Computing Applications for Business Users to Leverage Embedded TPM Security Chips

Lee, MA — November 20, 2006 — Wave Systems Corp. (NASDAQ: WAVX) today announced that its EMBASSY® Trust Suite (ETS) client software family has been thoroughly tested and certified for use on HP business desktop and notebook PCs with a hardware security chip called a Trusted Platform Module (TPM) that integrates the core elements of trust into the subsystem. The ETS products are available for purchase immediately direct at http://www.wave.com/products/ets.asp and more information may be found on the HP Independent Software Vendor web site at:
http://h20331.www2.hp.com/Hpsub/cache/292227-0-0-225-121.html .

A TPM is a unique standards-based hardware security chip that handles various advanced security tasks on a computer; the chip is embedded into a wide array of HP business notebooks and select business desktops. When combined with Wave Systems’ EMBASSY Trust Suite software, a TPM performs a variety of business security features, such as security policy management, data protection, password management and strong pre-boot authentication. The TPM/ETS solution substantially improves protection against: password, data and personal information theft and provides enhanced application security, strong wireless authentication, secure email and more — all while increasing productivity.

"We’re pleased to extend our relationship with HP, collaborating to enable Wave Systems’ turnkey software to leverage HP embedded security solutions," said Steven Sprague, Wave’s president and CEO. "Wave’s software has undergone a rigorous testing process to validate the advanced trusted computing security it provides to customers. We believe these security solutions, which Wave has tested and certified for use on HP business PCs, provide HP customers a heterogeneous, interoperable security solution that can immediately benefit the security of any business."

Wave’s EMBASSY Trust Suite, Business Edition , developed specifically around the new Trusted Computing Group (TCG) specification, delivers an easy-to-use launch pad for secure access to your applications from a central location. Wave’s Document Manager Vault application offers a user-controlled vault for storage of private data, such as encrypted files and folders on personal computers. Document Manager Vault offers the choice of a simple drag-and-drop mechanism, as well as a set of integrated plug-ins for popular office tools to encrypt and decrypt any type of file on a local PC. Wave’s SmartSignature® capability electronically signs and stores documents, contracts and supporting files.

Trusted Computing Solutions for the Enterprise

In addition to the EMBASSY Trust Suite, Wave also offers four enterprise solutions which deliver improved trusted computing features for government and enterprise markets. Wave’s EMBASSY® Key Management Server (EKMS) and EMBASSY® Authentication Server (EAS) provide trusted computing solutions for network policy management, data protection and strong authentication using biometrics, smart cards and TPMs.

Wave’s EMBASSY® Network Access Control (ENAC) leverages existing network infrastructure and open industry standards for IT control over PC client access to the network, locking down the network from unauthorized access to thwart many common and damaging network attacks. EMBASSY® Endpoint Enforcer (EEE) is Wave’s open, standards-based network security solution designed to work with any network access control solution. It captures, reports and validates platform integrity metrics on PCs equipped with TPM security chips and enables third-party applications and services to make informed network access decisions.

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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.

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.

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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
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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