Wave to Showcase Hardware-based Validation of Endpoint Data Integrity for Network Access Control at Interop Las Vegas 2008

Wave Software Extends Juniper Networks’ Unified Access Control (UAC) Machine Authentication and Health Status Verification; Limits Data Access Based on Proof of Encryption on Seagate FDE Hard Drives

Las Vegas (Interop) and Lee, MA — April 29, 2008 — Wave Systems Corp. (NASDAQ: WAVX; www.wave.com ) today announced that it will demonstrate a Network Access Control (NAC) solution that verifies the presence and state of a full disk encryption hard drive as a prerequisite for network access, assuring that only computers that comply with an organization’s encryption policy are allowed on the network. Wave will also show how standards-based, client PC security hardware can ensure the integrity of the machines on a corporate network, thus extending the capabilities of traditional NAC solutions. The demonstrations will take place at the Trusted Computing Group’s booth (#421) at Interop Las Vegas 2008, located at the Mandalay Bay Convention Center, from April 29-May 2.

Wave’s software extends the security of commercially available NAC solutions by using the Trusted Platform Module (TPM) security chip to measure, sign and store endpoint integrity metrics. Specifically, Wave will demonstrate how its EMBASSY® Endpoint Enforcer software interoperates with Juniper Networks’ Unified Access Control (UAC) to enforce a policy that requires a Seagate Momentus® full disk encryption hard drive to be present on a laptop requesting access to a network—and that its security settings, such as pre-boot authentication, be enabled and active.

"Seagate and Wave are continuing to enhance PC security solutions based on our strong, fast always-on hard drive-based encryption technology," said Michael Wingert, executive vice president and general manager of Seagate’s Personal Compute business unit. "With the addition of Network Access Control solutions from industry leaders like Juniper and the TPM authentication from Wave, the Seagate Momentus 5400 FDE.2 hard drive clearly addresses the data at rest and network access encryption policy key criteria for enterprises."

In addition, this joint solution provides strong platform authentication and robust protection against software attacks that create "lying endpoints." Specifically, Wave’s EMBASSY Endpoint Enforcer measures, validates and reports on the integrity of the Juniper UAC client components, providing a high level of assurance that the endpoint integrity data collected is not compromised or otherwise altered.

"Data protection capabilities such as the presence of FDE drives represent an area of increased interest from security-conscious organizations, and a logical extension of Network Access Control," said Jay Kelley, product marketing manager, Access Solutions, Juniper Networks. "Wave provides the secure hardware authentication, data protection, and the necessary measurement data to Juniper’s UAC to facilitate a combined, hardware enabled end-to-end NAC solution. Juniper is pleased to demonstrate our complementary capabilities through this NAC demonstration with Wave."

"We believe that the ability to verify the health and data protection capabilities of PCs before granting access to networks and confidential data is a critical step for protecting enterprises," said Brian Berger, executive vice president of marketing and sales at Wave Systems. "We look forward to providing attendees at Interop 2008 with multiple demonstrations of how Wave’s hardware-based security solutions can make this process a reality for their organizations."

Hardware Security Verification for Web Services
In addition to the aforementioned demos, Wave will show a proof-of-concept solution that depicts how a Web service such as a corporate intranet can use Wave’s EMBASSY Remote Administration Server to interrogate computers requesting access to sensitive data to verify the presence and state of their Seagate full disk encryption hard drive.

TheTrust-and-Verify demonstration pairs Wave’s EMBASSY Remote Administration Server (ERAS) on the server side, with Wave’s EMBASSY Trust Suite and Seagate full disk encryption hard drives on the client. When the client attempts to access pages from a local network, ERAS polls the client to confirm the presence of a Seagate FDE drive, and whether or not the drive’s hardware encryptionand strong access control are enabled and active.

By leveraging "built in" hardware security, enterprises can better prove that a PC is in compliance with data protection policies and regulations, make better network access decisions and ensure that sensitive data on a laptop computer is protected in the event the computer is lost or stolen.

For more information about Wave Systems activities at Interop Las Vegas 2008, or to schedule meetings with company experts at the show, please contact Dave Bowker or Tiffany Archambault at 781-684-0770 or e-mail wavesystems@schwartz-pr.com. For more information about Wave’s products and services, please visit www.wave.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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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