Wave Teams with Seagate to Offer Security Management Software for Next Generation of Fully Encrypting Hard Drives

Data Protection Solution for Lost and Stolen Laptops Provides Always On, High Performance Hardware Encryption with Full Remote Management

Lee, MA — March 15, 2007 — Wave Systems Corp. (NASDAQ: WAVX) today announced the availability of advanced management software delivered on a new generation of Seagate Technology (NYSE: STX) encrypting notebook PC hard drives, enabling a significant step forward in data security for laptops.

New versions of Wave’s EMBASSY® Security Center including EMBASSY Trusted Drive Manager (ETDM) and the EMBASSY Remote Administration Server (ERAS) software now support Seagate’s Momentus 5400 (Full Disc Encryption) FDE.2 hard drive, the latest generation of Seagate’s FDE drives based on the company’s DriveTrust™ technology.

The user experience is simple to set up and easy to use, while enabling enterprises to remotely manage the security settings of their laptop FDE drives. ERAS provides robust ‘no touch’ administration and password management for drives and audit logs to provide control and information to help ensure compliance with many data protection regulations pertaining to lost or stolen laptops.

Wave’s EMBASSY Security Center with Trusted Drive Manager software can simplify deployment and usage of the Full Disk Encryption (FDE) hard drives by making it easier for system administrators and users to set and control hard drive policies and security settings as well as create and back up passwords. In addition, the software enables administrators of Momentus 5400 FDE.2 hard drives to instantly and easily perform a cryptographic erase of all data so that the drives can be safely redeployed or discarded.

"Seagate is pleased that Wave Systems has joined us to help extend the power of DriveTrust drives in the enterprise," said John Bedrick, Seagate senior director of IT Security — New Market Development. "Many enterprise customers are looking for a management system that helps simplify the administration and control of passwords and keys necessary for securing data-at-rest, and the Wave Systems’ management software, working with Seagate’s secure notebook drives is a compelling solution for doing this. "

Seagate DriveTrust Technology is a new security platform that is designed to combine strong, fully automated hardware-based security with a programming foundation that makes it easy to add security-based software applications for organization-wide encryption key management, multi-factor user authentication and other capabilities that help lock down digital information at rest.

Seagate’s new Momentus 5400 FDE.2 hard drive features perpendicular recording technology to deliver up to 160GB of capacity, a fast Serial ATA 1.5 Gbit/second interface and, like all other Seagate internal drives sold through the distribution channel, a 5-year warranty. The drive also ships with AES encryption, a government-grade security protocol that Momentus 5400 FDE.2 uses to automatically encrypt all drive information. Seagate has announced that the first of Seagate’s Momentus FDE.2 hard drives and Wave’s management software will be shipping in laptops manufactured by ASI Computer Technologies as soon as April.

"With today’s trusted computing standards taking security to new heights, we can now take steps to ensure that lost or stolen PCs are of little value to malicious individuals because the data is significantly less vulnerable to access by unauthorized persons.," said Lark Allen, executive vice president, Wave Systems. "With encryption and access control security integrated in the protected hardware of the disk drive, we believe that we now have an ideal cryptographic system where the keys, passwords and data are protected from software attacks."

Wave Systems’ EMBASSY Trusted Drive Manager and the Seagate DriveTrust technology provide a highly secure preboot environment, where users are authenticated to their platform and data outside of the potential attacks by key stroke loggers, OS root kits and viruses. This capability is a major step forward in data protection.

Meeting Government Data Protection Laws

Seagate is providing industry leading security features in its products that enterprises can employ to meet not only the challenging requirements of data protection and privacy, but also regulatory compliance. Organizations face stringent government regulations regarding the protection of sensitive enterprise and customer data, including the mandate that they must report losses of unsecured data to both the government and to customers. To help address this issue, Wave Systems recently announced its EMBASSY Remote Administration Server (ERAS), which enables remote management, and monitoring, of Trusted Platform Modules (TPM) now available on FDE drives in laptop platforms.

ERAS furthers compliance efforts and can significantly reduce the need for data loss reports to government agencies and affected clients when drive security can be shown to have been engaged based on a detailed audit log of user activity and the security settings of FDE drives.

The EMBASSY Trusted Drive Manager is a plug-in to the EMBASSY Security Center and provides a complete set of life cycle management functions for FDE drives. Featuring an easy to use interface, the comprehensive FDE functions include drive activation or issuance, policy setup, password management, strong access control, and instant cryptographic erase for repurposing or drive disposal. In addition, Wave’s EMBASSY Remote Administration Server, has been enhanced to support not only TPMs, but also the Seagate Momentus 5400 FDE.2 family of products to enable enterprises to remotely manage the passwords for backup and recovery, as well as manage all the FDE drive security settings.

Trusted Computing Solutions for the Enterprise

Wave’s EMBASSY Trust Suite is a collection of practical, easy-to-use applications for enhanced PC security utilizing TPM and FDE drive security. The EMBASSY Trust Suite software provides a number of Trusted Computing features, from advanced authentication to password management, and includes Document Manager for encryption of files, folders, and multiple secure virtual drives, which complements the full disc encryption capabilities offered by Seagate’s FDE drives. Wave’s authentication features add biometric fingerprint capabilities for logging in to Windows, accessing secure applications and data, or for unlocking the computer.

For more information on Wave’s additional software and server offerings for enterprise deployment, please visit: http://www.wave.com/products.

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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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For more information please contact:

Company:
Wave Systems Corp.
Michael Wheeler
413-243-7026
mwheeler@wave.com
Wave Media Contact:
Schwartz Communications
Michael Schultz / Tiffany Archambault
781-684-0770
wave@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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