Wave Unveils EMBASSY® Remote Administration Server Version 1.5

Centralized Security for Documenting Laptop Data Protection; New Enhancements Reduce Cost and Complexity of Deploying Trusted Drives and Trusted Platform Modules

Lee, MA — January 28, 2008 — Wave Systems Corp. (NASDAQ: WAVX; www.wave.com) today announced the availability of its newest version of EMBASSY Remote Administration Server (ERAS), 1.5, its multi-platform server software that provides centralized administration and management for trusted hardware security throughout the enterprise. ERAS 1.5 features new, compliance-focused enhancements that enable organizations with full disk encrypting (FDE) hard drives from Seagate to generate a detailed audit log of drive security events, thereby proving that encryption was never disabled by the user and that data on the drive remained protected. Plus, ERAS gives systems administrators the ability to enable and leverage Trusted Platform Module (TPM) security chips for a multitude of security capabilities, including strong authentication to virtual private networks (VPN) and wireless access.

"Our research shows that organizations are planning strong year-over-year growth in the use of hardware-based encryption to protect sensitive information at the endpoints and to address security and compliance requirements," said Derek E. Brink, vice president and research director for IT Security at Aberdeen Group. "The companies with best-in-class performance in doing so are those who can address the challenges of managing these solutions in a more consistent and cost-effective way. Solutions that provide the ability to centrally manage TPMs and full-disk encrypting drives, such as Wave Systems’ ERAS, are important to the success of these implementations."

Legislation requiring companies to publicly disclose real or suspected mishandling of personally identifiable information continues to proliferate. If a notebook PC or disk drive containing customer data is lost or stolen, organizations are in many cases obligated to report the breach if the data was not adequately protected. ERAS can verify that access to encrypted data is limited to authorized users. Furthermore, when ERAS is used to initialize and manage the security features of an FDE drive, local users are restricted from changing the drive’s security settings, ensuring that only authorized personnel can make such modifications.

Deploying Seagate FDE drives with ERAS can significantly reduce the IT planning and overhead associated with traditional software solutions. Typically, it can take hours for an administrator to re-image a PC and encrypt data bit by bit using FDE software. Using ERAS, encryption can be enabled "out of the box" and deployment can occur within minutes. Because ERAS works in conjunction with Active Directory, extra time to create new groups of users on a domain is not necessary.

In addition to managing Seagate FDE drives, ERAS was designed to remotely turn on and manage TPM security chips, which function much like an embedded smart card, capable of generating keys as well as storing certificates and other critical information securely. This can enable a "layered" approach to data security. Using the TPM and Wave software, organizations can implement strong user and machine authentication, and can enhance network access control security.


Additional Management Enhancements for Trusted Platforms
Based on user feedback, Wave enhanced ERAS to provide additional capabilities for more simplified management of embedded hardware security. ERAS 1.5 now features:

"The industry is realizing that hardware-based data protection offers superior security for critical endpoint systems and assets. As powerful as trusted security is, organizations must have the right management tools in place from the moment of acquisition, through deployment and use, to realize its full potential," said Steven Sprague, president and CEO of Wave Systems. "With this in mind, Wave is proud to offer the next generation of EMBASSY Remote Administration Server to help the enterprise leverage open-standards, hardware-based security to more effectively and efficiently protect their critical data."

Pricing and Availability
ERAS 1.5 is available by contacting Wave directly or through a local Dell account representative. The MSRP price for ERAS is determined by volume of seats.

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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