Wave Systems to Demonstrate Complete Hardware Data Protection Solution for Security and Compliance at WinHEC 2007 Conference

Learn How to Leverage the New Industry Standards for Hardware-based Security and Compliance

Los Angeles, CA & Lee, MA — May 14, 2007 — Wave Systems Corp. (NASDAQ: WAVX; www.wave.com ) today announced the company will showcase its data protection management software for the new generation of fully encrypting notebook PC hard drives from Seagate Technology (NYSE:STX) and will demonstrate its solutions for strong authentication and establishing machine identity at the Microsoft WinHEC 2007 conference taking place this week in Los Angeles.

Wave will demonstrate its EMBASSY® Trust Suite software that includes the Trusted Drive Manager for activating the advanced security features of the Seagate full disc encryption (FDE) drive with DriveTrust™ technology. Wave will also show how the EMBASSY® Remote Administration Server allows for streamlined enterprise deployment and comprehensive remote management of the Seagate FDE laptop hard drives and Trusted Platform Modules (TPMs).

In addition, Wave will display its EMBASSY Trust Suite of security applications that ships with TPM-enabled PCs.

Demonstrations will take place at the Seagate Technology booth #628, with live examples leveraging Seagate’s FDE drives for advanced hardware data protection and compliance, managed by Wave’s EMBASSY software. Together, Wave Systems and Seagate are enabling a significant step forward in data security for laptops.

Hardware data protection demonstrations will include:

For more information about Wave Systems activities at upcoming tradeshows, or to schedule meetings with company experts, please contact Mike Schultz or Tiffany Archambault at 781-684-0770 or email wavesystems@schwartz-pr.com. For more information about Wave’s products and services, please visit www.wave.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.

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 / 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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