Wave Systems and Safend Team to Offer Complementary Solutions for Safeguarding Data at Rest and Data in Motion

Referral Sales Agreement Encompasses Solutions for Data Protection, Authentication and Network Security

Lee, MA and Philadelphia, PA — October 25, 2007 — Wave Systems Corp. (NASDAQ: WAVX; a leader in delivering trusted computing applications and services, and Safend, Inc, a leading provider of data leakage prevention solutions today announced a sales referral agreement. Enterprises deploying technologies from Wave and Safend can benefit from a layered security approach: Wave’s software is designed to manage trusted security hardware to encrypt data and restrict access to corporate information, while Safend’s comprehensive endpoint security solutions can help ensure data does not leave the corporation through unauthorized removal of storage and wireless devices.

Under this arrangement, each company can receive commissions on sales from referring its existing and potential customers to products and solutions of the other.

Safend’s data leakage prevention solutions protect the physical and wireless communication ports of enterprise PCs and laptops, providing IT managers with the tools to seamlessly enforce established information security policies and compliance standards, while allowing the use of productivity-enhancing technology such as USB, removable media and wireless capabilities.

Wave’s EMBASSY® line of trusted computing software allows enterprises to manage many of the security functions of embedded PC hardware including full disk encrypting hard drives and Trusted Platform Modules (TPM). EMBASSY software enables organizations to cost-effectively address security needs such as data protection, strong authentication and network access control.

"This arrangement with Wave represents an important opportunity to offer our customers the complementary benefits of combining trusted computing solutions and highly granular port protection in their enterprises today," said Susan Callahan, VP of Business Development and Marketing of Safend. "We look forward to working with Wave to introduce their customers to the benefits of strong endpoint security that Safend provides."

"Safend’s expertise fits well with our own focus on protecting endpoints through trusted hardware and securing data at rest on trusted drives," observed Brian Berger, executive vice president of marketing and sales for Wave. "Once information is ‘locked down’ on the desktop and a strong authentication solution is deployed, deploying a port protection solution such as Safend’s to protect against unauthorized movement of data using products can be an important next step."

About Safend
Safend is a leading provider of endpoint data leakage prevention solutions that protect against corporate data loss via physical, wireless, and removable media ports while ensuring compliance with regulatory data security and privacy standards. Safend’s solutions, available through resellers worldwide, are deployed by multinational enterprises, government agencies and small to mid-size companies across the globe. Founded in 2003, Safend is a privately held company funded by Elron Electronics (NASDAQ: ELRN) (TELAVIV: ELRN), Intel Capital, and Walden Israel. Safend is headquartered in Tel Aviv with US headquarters in Philadelphia. For more information, visit

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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 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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