Acer Unveils Line of Business Desktop PCs with Wave Software

World’s Third Largest PC Vendor Bundles Wave EMBASSY® Software with Veriton™ Business PCs; Shipments in EMEA, APAC Slated for End of Q4, US in Early ‘09

Lee, MA — October 14, 2008 — Wave Systems Corp. (NASDAQ: WAVX; www.wave.com) recently completed a licence agreement with Acer, permitting the world’s third-largest PC vendor to bundle an OEM edition of its EMBASSY Trust Suite (ETS) software with Acer’s new Veriton™ 670 line of business desktop PCs.

The first shipments of the Acer desktops with ETS are expected to begin this quarter and include a motherboard featuring a Trusted Platform Module (TPM) that is integrated with the Intel chipset branded the iTPM. This built-in hardware strengthens PC security and alleviates vulnerabilities found in software security through enhanced capabilities such as safe storage for user credentials and encryption keys.  Organizations that leverage Intel’s iTPM combined with ETS can quickly and cost-effectively enhance and manage PC security in the following ways:

Strong authentication: Strengthen authentication to Windows, Virtual Private Networks (VPN), wireless networks and secure applications through multi-factor authentication, with the option of combining passwords, TPM certificates, smart cards and fingerprints.

Data protection: Access a secure virtual drive from any program to encrypt sensitive files and folders using hardware-based encryption instead of software-based encryption.

Password management: Take advantage of speedy access to websites and applications with automated features for saving and supplying passwords. Passwords are safeguarded by hardware in TPM-secured storage.

In addition, security policies and user settings are consolidated into a single security interface for simplified management. Security wizards assist the user with first time setup, multi-step tasks and adding TPM security to common applications. For enterprises, Wave also offers enhanced management capabilities through its EMBASSY Remote Administration Server and integration with Active Directory, which allows for remote administration of security features of ETS as well as distributed policy management.

Acer will also bundle Wave’s ETS on PCs designed for small businesses that do not have a discrete TPM chip or iTPM included on the motherboard. Applications include managing passwords, biometric authentication and file and folder encryption.

"Businesses worldwide are increasingly seeking higher levels of security for their critical information and network access, and leading PC vendors like Acer are addressing these customer demands through hardware," said Brian D. Berger, Wave’s executive vice president of marketing & sales. "We look forward to providing Acer customers with the ability to turn on, manage and leverage the Trusted Platform Module with Wave’s software to deliver stronger security for their users and better protection for their critical data."

Wave will receive a per-unit royalty based on the shipment volumes to third parties of products equipped with the ETS Acer Computer OEM Edition. However, the license agreement does not provide for guaranteed minimum shipped quantities or royalties.

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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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Except for the statements of historical fact, the information presented herein constitutes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.  Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements.  Such factors include general economic and business conditions, the ability to fund operations, the ability to forge partnerships required for deployment, changes in consumer and corporate buying habits, chip development and production, the rapid pace of change in the technology industry and other factors over which Wave Systems Corp. has little or no control.  Wave Systems assumes no obligation to publicly update or revise any forward-looking statements.

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For more information please contact:

Company:
Wave Systems Corp.
Michael Wheeler
413-243-7026
mwheeler@wave.com

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