Wave Systems Named Reader Trust Finalist in 2008 SC Magazine Awards Program

Lee, MADecember 20, 2007 –Wave Systems Corp. (NASDAQ:WAVX www.wave.com) has been named a finalist in the SC Magazine Awards program for outstanding achievement in information-technology (IT) security. The company’s EMBASSY® security management software has been recognized in the Reader Trust Award Best Endpoint Security Solution category of the competition.

"With this finalist nomination, SC Magazine readers are recognizing Wave Systems as a key ally in their mission to safeguard businesses, customers and critical data in North America," said SC Magazine Editor-in-Chief Illena Armstrong.

Wave’s elite endpoint security solution was among more than 600 entries submitted in more than 30 technology categories. Finalists of the SC Magazine Awards program are determined through voting conducted by the publication’s readers. Readers vote for what they view as the solution that is most effective at helping them to address the problems for which it was designed.

Wave’s nominated entry highlights its lifecycle management software for hardware-based computer security features. The company’s EMBASSY Trusted Drive Manager simplifies the setup and configuration of fully encrypting hard drives from Seagate Technology, enabling access to the drives in their pre-boot state. In addition, Wave’s EMBASSY Remote Administration Server provides robust "no touch" administration of the drives, as well as audit logs to help ensure compliance with data protection regulations pertaining to lost or stolen laptops.

"This recognition from SC Magazine is an honor and a reflection of readers’ awareness that hardware-based data protection provides a superior level of security for critical endpoint systems and assets," said Steven Sprague, president and CEO, Wave Systems Corp. "As businesses continue to adopt laptops and PCs equipped with TPM chips and full disk encryption hard drives, they can turn to Wave for cost effective, simplified deployment and usage of these technologies. In an age of epidemic data theft and loss, this can be a crucial solution both for data protection and regulatory compliance."

Wave’s EMBASSY software also manages the security functions of an open standards hardware security chip built into business PCs called a Trusted Platform Module (TPM), which can store and protect passwords, digital certificates and cryptographic keys. Use of Wave software and the TPM offers a second layer of security over the data protection afforded by hardware-based full disk encryption, enabling enterprises with strong machine and user authentication, strong wireless and VPN authentication, and reducing external threats to network access control security.

The annual SC Magazine Awards have recognized security’s key contributors and outstanding products for more than a decade. As the industry’s preeminent award program, individuals, brands and products short-listed address not only the challenges prominent today, but also the emerging threat landscape of tomorrow.

Winners of this year’s awards will be announced at an exclusive awards event to be held in San Francisco April 8th, 2008.

About SC Magazine

SC Magazine provides IT security professionals with in-depth and unbiased information through timely news, comprehensive analysis, cutting-edge features, contributions from thought leaders and the best, most extensive collection of product reviews in the business. By offering a consolidated view of IT security through independent product tests and well-researched editorial content that provides the contextual backdrop for how these IT security tools will address larger demands put on businesses today, SC Magazine enables IT security pros to make the right security decisions for their companies. The brand’s portfolio includes the SC Magazine Awards, SC Directory, SC Magazine Newswire and SC Magazine IT Security Executives Forums.

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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 Investor Relations Contact
David Collins, Ratula Roy
Catalyst Global LLC
212-924-9800
wavx@catalyst-ir.com