Wave Systems Expands Sales & Marketing Reach via Strategic Partnership with Convergent Computing

Collaboration to Deliver Next-Generation Trusted Computing Solutions to U.S. Pacific West Enterprises

Lee, MA and Oakland, CA — October 3, 2007 — Wave Systems Corp. (NASDAQ: WAVX; www.wave.com ), today announced a strategic partnership with Convergent Computing, (CCO), a California-based technology services consulting firm for medium and large businesses. Pursuant to the agreement, CCO will advise its clients on the uses and help with the implementation of Wave’s EMBASSY® line of trusted computing solutions for data protection, strong authentication, and interoperable Trusted Platform Module (TPM) system management to enterprises in California, Oregon and Washington.

"Our customers call on us to design comprehensive, cost-effective security configurations for their network environments," said Rand Morimoto, president and CEO of Convergent Computing. "Teaming with Wave will allow us to help clients plan, design and implement a security architecture rooted in standards-based TPM security chip hardware. By offering TPM support via Wave’s EMBASSY solutions, CCO and Wave can enable users to easily deploy TPM technology enterprise-wide and offer them comprehensive security functionality to mitigate the risks of unauthorized PC or network access or hacking theft."

Wave’s EMBASSY solutions leverage the security potential of the TPM which is designed to act as a tamper-resistant storage vault for user credentials. TPM chips on the motherboard of new business PCs enable a variety of features including security policy management, data protection, password management and strong pre-boot authentication, including integration with biometrics. This solution can substantially improve protection against password, data and personal information theft, and provides enhanced application security, strong wireless authentication, secure email and more.

"Though partnerships with top security consultancies such as CCO, we build upon our OEM relationships to further extend our reach into the enterprise market to provide comprehensive support for a single root of trust security strategy," said Brian Berger, executive vice president of marketing and sales at Wave Systems. “CCO’s expertise in security solutions integration and configuration management allows us to broaden our marketing scope to enterprises in the Pacific West region.”

CCO’s expertise extends across the following products: EMBASSY Trust Suite Enterprise Edition with Trusted Drive Manager, EMBASSY Key Management Server, EMBASSY Authentication Server and EMBASSY Remote Administration Server. More information on Wave Systems’ EMBASSY products is available at www.wave.com.

About Convergent Computing
Established in 1986, Convergent Computing (CCO) has over 65 consultants and experts that help medium and large organizations architect, implement, and support their local area, wide area, and enterprise networks based on industry best practices. CCO is on the Web at http://www.cco.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
Tim Whitman / Tiffany Archambault
Wave Investor Relations Contact
David Collins, Ratula Roy
Catalyst Global LLC

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