Wave Surpasses the 20-Million Mark for Shipments of EMBASSY® Trust Suite Software

Shipment Volumes for 2007 Have Increased 300% over Total Volume for all Prior Years Combined

Lee, MA — December 11, 2007 — Wave Systems Corp. (NASDAQ: WAVX; www.wave.com) today announced that it has surpassed the 20-million unit mark for shipments of its flagship EMBASSY Trust Suite software, with more than 16 million copies shipped year-to-date by PC OEM partners in 2007.  An expanding base of enterprise users can now elect to use this software to improve data protection, implement stronger user and machine authentication, and mitigate hidden threats to network access control protection.

Wave’s EMBASSY Trust Suite offers users the management tools to utilize the features of a Trusted Platform Module (TPM), a security chip that resides on the motherboard. The TPM is unique in that it generates security keys for authentication and encryption, as well as securely storing sensitive data such as files on a hard drive and passwords.  Because those keys are protected by hardware, they are not vulnerable to viruses or rogue software attacks.

"With the increased security exposure risks that most companies and individuals are now aware of, it makes no sense that the TPM isn’t being used more extensively," said Rob Enderle, president and principal analyst for the Enderle Group, a prominent security consulting firm.  According to Enderle, "to take advantage of the TPM you need a strong set of tools that that will centrally activate and manage that component. According to the IT shops I’ve spoken to, there is one firm that consistently stands out as meeting or exceeding expectations and that is Wave Systems."

Wave’s EMBASSY Trust Suite (ETS) software is available from many leading PC OEMs and is included on many leading brands of TPMs.  Wave earns modest per-unit fees when its ETS software is bundled on enterprise PC shipments. The company is working with its PC OEM partners to increase market interest for "upgrades" of its bundled software, including its server management software products. Upgrades are available from Wave for an additional per-seat fee of $129 MSRP.

"We expect hardware-based security to play an important role in the computer security industry. The fact that Wave has shipped 20 million copies of ETS software is an indication of this," said Steven Sprague, CEO and president of Wave Systems.  "We will continue to innovate and work with our industry partners to expand the uses of trusted computing technologies for the enterprise."

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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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For more information please contact:

Company:
Wave Systems Corp.
Michael Wheeler
413-243-7026
mwheeler@wave.com
Wave Media Contact:
Schwartz Communications
Dave Bowker / 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