Wells Fargo Funding Authorizes Wave Systems’ eDisclosure Solution for its Mortgage Correspondents

Wells Fargo Funding Approves Correspondent Lenders’ use of the eSign Transaction Management Suite for Electronic Disclosures; Wave to be Listed as an Authorized Vendor on Wells Fargo’s External Website

Lee, MA — June 19, 2008 — Wave Systems Corp. (NASDAQ: WAVX), today announced that its eSign Transaction Management Suite (eTMS) has been authorized by Wells Fargo & Co.’s mortgage division for use by its correspondent lenders as an eDisclosure solution. Wells Fargo’s correspondents that have received approval to deliver electronic disclosures may elect to use the SmartSigning Room and SmartSignature applications to streamline electronic mortgage disclosures and help secure customer commitment early in the lending process.

Correspondents using these applications can benefit from a reduction in the cost and time associated with printing, mailing and processing of borrower disclosures; better communications to the borrower; and improved compliance with federal and state regulators.

The SmartSigning Room facilitates the electronic delivery and borrower signing of the requisite mortgage disclosure documents and is well suited for Wells Fargo’s correspondent lenders seeking an off-the-shelf eDisclosure solution with a user interface that has been pre-approved by Wells Fargo. SmartSignature Server affords similar signing functionality, but also provides correspondents with additional flexibility to custom build the entire user interface for the signing process.

"We’re gratified that Wells Fargo has authorized eSign Transaction Management Suite for use by its correspondents to help them streamline the electronic disclosure process. This certification will help Wave in its efforts to address the significant demand for approved eDisclosure solutions, especially among lenders with a strong Web presence—which we believe is the fastest growing segment of this market," said Kelly Purcell, executive vice president of Wave’s eSign Systems division. "Wells’ authorization of eTMS allows correspondents to choose to adopt and use our eDisclosure technology, which we believe can provide important advantages throughout the lending chain."

Both SmartSigning Room and SmartSignature are fully integrated into the eTMS SmartSAFE, a record retention and eVaulting solution for signed disclosures. In addition, copies of signed disclosures can be shared via Web services with a correspondent’s internal systems, including many proprietary document management and CRM systems.

Correspondents can gain access to the solutions by licensing them directly from Wave or via one of Wave’s current platform providers, including a la mode, inc., DocuTech, Xerox Mortgage Services and SigniaDocs. Access will also be available shortly via Ellie Mae’s eFolder offering.

Wave is listed along with other authorized vendors at www.lendersalliance.com, accessible only to Wells Fargo’s clients.

SmartSigning Room/Smart Signature Server in Detail

With SmartSigning Room, documents in the SmartSAFE™ virtual document repository (eVault) can be reviewed simultaneously by all signers and invited attendees. The SmartSigning Room also auto-creates an invitation e-mail that provides borrowers with secure access to review, annotate, electronically sign, print or download documents. Designed to be extremely user friendly for the borrower and originator, the SmartSigning Room can give all parties the confidence that the loans have been properly delivered, disclosed, signed and closed.

The SmartSigning Room application allows for lender branding, as well as configuration of signing options. Wells Fargo’s certification is contingent upon the system being configured to capture ESIGN consent, along with borrower confirmation, at each signature point. Wave would assist lenders during the implementation process to configure their systems to meet these and other Wells Fargo requirements. While not required by Wells Fargo, the signing can be controlled to require parties to sign in a specific order, as well as to require certain signers to belong to specific roles, such as a notary or witness. Additionally, the suite now supports PDF form-field signing which can streamline the implementation for lenders or their document companies that have not yet determined the coordinates of all their document signature points.

SmartSignature Server affords similar signing functionality but can allow the lender to imbed the process in its own Web applications. Wave Systems would work with a SmartSignature Server licensee to design the user interface for compliance as well as adherence to Wells requirements. In addition, Wave would assist the lender in obtaining authorization from Wells Fargo for eDisclosures.

Wave’s eTMS meets many legal requirements for transactions (signing and record retention) governed by ESIGN, UETA, Revised Article 9 of the UCC, SPeRS and GPEA. Additionally, eTMS supports Wave’s EMBASSY Trust Suite ® products, which deliver advanced levels of security to client PCs using the TPM security chip found on most enterprise PCs being sold today.

To arrange for a Web demonstration with Wave, contact Kelly Purcell directly at 602-615-8092 or at kpurcell@esignsystems.com.

Wave Logo

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.

Safe Harbor for Forward Looking Statements

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.

All brands are the property of their respective owners.

For more information please contact:

Wave Systems Corp.
Kelly Purcell
Wave Media Contact:
Schwartz Communications
Michael Schultz / Tiffany Archambault
Wave Investor Relations Contact
David Collins, Ratula Roy
Catalyst Global LLC

Stay up-to-date on news relating to Wave. Join our email list by putting your email address in the space below.