Wave to Demonstrate Complete Enterprise Management of Trusted Platforms for the Department of Defense at C4IST Exhibition

Demonstrations to Highlight Wave’s Management Capabilities for Trusted Platform Modules (TPM) and Full Disc Encryption (FDE) Hard Drives for Advanced Data Protection

Lee, MA and Ft. Huachuca, Ariz. (AFCEA Command, Control, Communications, Computers & Intelligence Systems Technology Exhibition, Booth #212) — October 2, 2007 — Wave Systems Corp. (NASDAQ: WAVX; www.wave.com ), today announced it will conduct demonstrations of its EMBASSY® line of interoperable software for managing trusted platforms throughout the enterprise—designed to significantly strengthen the protection of sensitive information assets on enterprise PCs. The C4IST Exhibition runs from October 2 – 4, at the Ft. Huachuca Army Base in Arizona.

At C4IST, Wave will show how its EMBASSY software can leverage the security potential of the Trusted Platform Module (TPM), an open standards security chip on the motherboard of the PC that serves as a tamper-resistant storage vault for user credentials. In addition to showing its client-side software, Wave will demonstrate its EMBASSY Remote Administration Server (ERAS), which enables IT administrators to turn on, establish ownership and maintain control over all of the TPMs in the organization.

The Department of Defense (DoD) has focused on the role of the TPM chip in protecting critical information assets. In July the DoD issued a memo mandating encryption of all at-rest data on mobile devices and requiring that all new computer assets—servers, desktops, laptops and PDAs—include this security chip. Using the TPM allows organizations to bind critical security functions, including data encryption to platform hardware, creating a new level of security.

"The TPM is an essential component in complying with Defense Department-wide security requirements," said Steven Sprague, CEO at Wave Systems. "With TPM technology readily available, organizations now need to establish proper administrative ownership and lifecycle management of their TPM-equipped PCs. Wave is committed to providing the tools to make managing and using the TPM infrastructure a seamless and integral part of their IT process."

Management of Trusted Drives
Wave will also be demonstrating Wave’s Trusted Drive Manager and ERAS, software for managing the Momentus® 5400 FDE.2 drive from Seagate Technology.

To schedule meetings with Wave Systems’ experts at the C4I Systems Technology Exhibition, please contact Dave Bowker or Tiffany Archambault at 781-684-0770 or email wave@schwartz-pr.com. For more information about Wave’s products and services, please visit www.wave.com.

About the C4I Systems Technology Exhibition

Sponsored by the Southern Arizona Chapter Armed Forces Communications-Electronics Association (AFCEA), this annual event provides an ethical forum where government and industry can come together to demonstrate and discuss the latest C4I technologies, products and services. All proceeds, after expenses, benefit the AFCEA Scholarship and Grant program to assist local students and schools. This exhibition is open to all government personnel as well as the general public. More information on C4IST is available at http://www.afceac4ist.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
Wave Media Contact:
Schwartz Communications
Dave Bowker / Tiffany Archambault
Wave Investor Relations Contact
David Collins, Ratula Roy
Catalyst Global LLC

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