Wave’s EMBASSY® Trust Suite to Support
DigitalPersona Pro Fingerprint Authentication Server

Endpoint Security Enhanced by the Combination of User and Machine Authentication

Lee, MA — March 28, 2007 — Wave Systems Corp. (NASDAQ: WAVX)announced today that it has entered into a license agreement with DigitalPersona, Inc. permitting Wave to incorporate the DigitalPersona ® Pro Fingerprint Authentication technology into the EMBASSY Trust Suite ® (ETS) Enterprise Edition product family.
Wave’s EMBASSY Trust Suite is a collection of practical, easy-to-use applications that can allow enterprises to enhance PC security by utilizing the Trusted Platform Module (TPM) security chip. The DigitalPersona Pro Server leverages Microsoft ® Active Directory to provide secure, centrally managed fingerprint authentication services to an enterprise network. 

At the endpoints of all networks sit two distinct entities — the platform, such as a notebook or desktop PC, and the user. Each of these entities could pose security risks. The platform may be corrupted with malware and users may not securely protect their passwords. Most anti-virus software and complex password policies only put a bandage on these problems. To address this, many PC makers are now incorporating platform security solutions such as TPMs and fingerprint readers. Today’s announcement brings together Wave, a leader in secure enterprise software solutions and management for TPM’s, and DigitalPersona, a leader in enterprise software for fingerprint authentication.

"This support will allow enterprises using Wave’s ETS Enterprise products to use the DigitalPersona Pro Server to centrally manage fingerprint authentication policies and credentials via Active Directory. The synergy of DigitalPersona products with Wave Systems’ TPM remote management, key recovery, escrow and migration products for Active Directory provide important security back-office components for the enterprise customer," commented Brian Berger, executive vice president of marketing and sales for Wave Systems.

Peter McCoy, vice president of business development for DigitalPersona added, "Enterprises are beginning to take a holistic approach to security, combining the authentication of both the machine and the user. DigitalPersona is excited to work with Wave Systems to provide the power and flexibility of our DigitalPersona Pro fingerprint authentication server component. We believe this combined offering provides a valuable asset to enterprise IT."

The EMBASSY Trust Suite with DigitalPersona Pro Server support is expected to be available in 2007 as part of Wave’s ETS Enterprise Edition Software.

About DigitalPersona

DigitalPersona is the leading provider of biometric authentication solutions for enterprise networks, developers and consumer OEMs. Founded in 1996, the company designs, manufactures and sells flexible solutions that improve security and regulatory compliance while resolving password management problems. DigitalPersona’s fingerprint readers utilize superior optical fingerprint scanning technology to more accurately authenticate users regardless of finger placement. The company’s interoperable biometric software solutions uniquely support the industry’s widest array of notebooks with fingerprint readers in addition to its own line of optical placement readers. DigitalPersona’s award-winning technology is used worldwide by over 30 million people in the most diverse and challenging environments for fingerprint authentication. For more information contact DigitalPersona, Inc. at +1 650.474.4000, or visit www.digitalpersona.com .

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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
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David Collins, Ratula Roy
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