Ellie Mae Chooses Wave Systems to Add Trusted Electronic Signature Solutions for Mortgage Industry

Wave to Integrate eSign Compliant Document Solutions into Ellie Mae’s Award-Winning Encompass® Mortgage Automation System

Lee, MA — March 26, 2007 — Wave Systems Corp. (NASDAQ: WAVX) announced today that it has licensed its eSign Transaction Management Suite (eTMS) for integration into the eFolder of the Encompass ® Mortgage Automation System, Ellie Mae Inc.’s first electronically-signed mortgage document solution. Wave’s trusted electronic signature solution can be used to automate thousands of eFolder transactions monthly by eliminating the ink signatures and document transportation costs of faxes or other types of delivery service.

The solution can produce better tracking and control of the mortgage origination and disclosure process and help address many compliance issues, a growing concern of both originators and investors within the mortgage industry. Wave’s eTMS will provide Ellie Mae originators and consumers with new levels of convenience, compliance and security capabilities throughout the loan origination and disclosure process. Additionally, Wave’s EMBASSY Trust Suite ® products support the industry-standard Trusted Platform Module hardware security chips that are widely available in newer PCs, enhancing authentication and assurance of eSign’s solution.

As a result of the agreement, Ellie Mae’s Encompass loan origination system will incorporate Wave’s eSign Transaction Management Suite (eTMS) to manage digital and electronic signature processes such as creating, signing, storing, accessing and managing the lifecycle of legally binding electronic documents. Wave’s eTMS is an integrated suite of applications that provide functionality to help meet many technical and legal requirements for transactions (signing and record retention) governed by ESIGN, UETA, Revised Article 9 of the UCC, SPeRS and GPEA. The resulting trusted signature solution will add borrower authentication, electronic signing and document management of signed documents to the Encompass eFolder, which is a critical component of the Encompass system.

"According to a recent broker survey we conducted, 84 percent of our originator base is interested in supporting an electronic signed solution," explained Ellie Mae chief strategy officer Jonathan Corr. "We’re committed to listening to our customers and proactively responding with solutions to meet their needs. The addition of e-signature capabilities to Encompass illustrates this commitment. The time for e-signatures has certainly come, and we’ll help make e-signatures more commonly accepted through Encompass, which is already licensed by over 140,000 mortgage originators."

The increasing regulatory scrutiny from consumer advocacy groups and the investment community is driving additional demand for services and solutions that improve compliance in the origination process. Investors are concerned with compliance issues and the risks associated with the purchase of improperly disclosed loans. Ellie Mae and Wave Systems have worked closely on ways to address many of these concerns by expanding the power of Encompass with Wave’s trusted electronic signature capabilities that offer new levels of convenience and compliance and security capabilities for the loan origination and disclosure process.

"The demand for authenticated electronic disclosure products and services right now is significant, and many loan originators are looking for these value-added services from their existing vendor relationships. The solution must be easy to use and provide trust and security for the borrower," said Kelly Purcell, executive vice president of Wave’s eSign Systems division. "Additionally, the providers of these services are looking to reduce traditional paper and transportation expenses through technology solutions. Ellie Mae has shown a real commitment to creating these services by leveraging its current infrastructure and expansive relationships within the mortgage industry."

Ellie Mae’s Encompass eFolder Electronic Disclosure Offering addresses many of the recent industry concerns and needs regarding the loan origination and disclosure process. Ellie Mae is creating yet another competitive advantage for its originators and ePASS partners. Third party originators can now offer a secure, easy-to use application process for borrowers, and simultaneously deliver a compliant originated loan to the investor, all under the trusted provider name of Ellie Mae.

"By packaging the e-signature tool with state e-disclosures, Encompass will also offer its brokers an e-origination solution they can leverage immediately to add efficiency and save money for each loan they originate," added Corr of Ellie Mae.

Empowering Secure and Paper-Free Loan Origination & Management

Ellie Mae’s initial integration will offer the following Wave eTMS solutions, for users to access from directly within the Encompass eFolder.

For more information on Wave’s eTMS and eSign Systems, a division of Wave Systems Corp., please visit www.esignsystems.com.

About Ellie Mae, Inc.

Ellie Mae, an award-winning provider of software and services for the mortgage industry, offers a comprehensive line of loan origination solutions including the company’s flagship Encompass® Mortgage Automation System, as well as Contour™ The Loan Handler® and Genesis 2000®. Ellie Mae’s loan origination solutions are used by over 50 percent of the nation’s estimated 50,000 mortgage originators. Encompass is deployed by over half of the nation’s top 250 brokerages, including seven of the top ten. Integrated in these loan origination systems is Ellie Mae’s ePASS Network, the industry’s most-used online transaction platform, processing over one third of the nation’s $3 trillion in loans. Winner of the 2007 Mortgage Technology Synergy Award for enabling seamless end-to-end e-commerce, the ePASS Network enables mortgage companies to easily do business online with dozens of leading lenders and thousands of settlement service providers. Ellie Mae is based in Dublin , California , and can be found online at www.elliemae.com or by phone at (888) 955-9100.

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:

Wave Systems Corp.
Scott Schrader

Ellie Mae Contact:
Rosalie Berg
Strategic Vantage for Ellie Mae
(305) 971-5352

Wave Media Contact:
Schwartz Communications
Michael Schultz / Tiffany Archambault
Wave Investor Relations Contact
David Collins, Ratula Roy
Catalyst Global LLC

Stay up-to-date on news relating to Wave. Join our email list by putting your email address in the space below.