Wave Systems’ Data Protection Software Supports Seagate’s New Faster, Higher Capacity Self-encrypting Hard Drives Shipping on Dell E-Series Notebooks

EMBASSY® Trusted Drive Manager and Remote Administration Server Enable Strategic Security Features for New Seagate® Momentus® 7200- and 5400-RPM FDE Drives

Lee, MA — November 10, 2008 — Wave Systems Corp. (NASDAQ: WAVX; www.wave.com) today announced the availability of enhanced versions of EMBASSY Trust Suite, including Trusted Drive Manager, which incorporate support for the new Momentus FDE 7200RPM and 5400RPM self-encrypting drives from Seagate Technology LLC, the storage leader’s largest-capacity and fastest hardware-based Full Disk Encryption (FDE) drives to date. In addition, the new versions of Wave’s industry-leading trusted computing software being shipped by Dell include support for secure Windows Standby mode, pre-boot authentication, single sign-on and Windows password synchronization.

The combined Wave and Seagate offering, available on Dell’s E-Series line of Latitude notebooks and several Precision (TM) Mobile Workstation models, supports Dell’s new unique Secure Standby solution which, in addition to hibernation mode, does not expose either the encryption keys or the user authentication credentials within the operating system. All encryption and password authentication is done within the security hardware of the self-encrypting disk drive, not in the software of the operating system. This hardware-based solution continues to allow users to have fast, easy access to their systems, without the security exposures inherent in software-only solutions.

"Wave and Seagate Technology continue to offer superior ease of use from the industry’s first AES government grade self-encrypting disk drive coupled with strong security management for laptop computers," said Tom Major, vice president of marketing, Personal Compute Business, Seagate Technology LLC. "With Seagate’s new Momentus FDE self-encrypting drives, this capability is available with no-compromise, desktop PC-like performance for organizations of all sizes."

Wave has also added important new integration and usability features to its management software. Wave’s pre-boot authentication integrates with hardware features on the new Dell systems to allow for biometric and smart card access to the self-encrypting drives. A single sign-on feature now allows enterprises to select the option to automatically log users into their Windows system based on their secure pre-boot authentication without requiring separate logons. A new companion feature, Windows Password Synchronization, assures that any changes to either the self-encrypting drive or Windows passwords are automatically synchronized between the operating system and the drive. Wave’s software support for the high performance self-encrypting drives is available for both Windows XP and Vista operating systems.

"Wave is committed to providing support for one of the leading hardware-based data protection solutions on the market today. By utilizing Dell’s Secure Standby feature, customers can immediately address a vulnerability common to software FDE: the safe storage of encryption keys and credentials," said Lark Allen, executive vice president, Wave Systems. "The strongest security is achieved by protecting keys and sensitive processes within trusted hardware, as evidenced by the new hardware solutions for data protection. Wave is committed to providing this level of strong data protection through its management capabilities for industry leading hardware providers like Seagate."

The Momentus FDE hard drives are powered by Seagate Secure technology, a Seagate security platform that couples strong, fully automated hardware-based full-disk encryption with Wave’s client and server -based software applications to deliver centralized provisioning and management, strong pre-boot user authentication and other capabilities that help lock down personal computer and data center storage. The drives provide ironclad protection against theft of data on lost or stolen computers and enable organizations of all sizes to comply with consumer laws and state and federal legislation requiring identity theft protection. 

The Seagate® Momentus® 7200 FDE drive delivers up to 320 GB of secure digital storage using Seagate Secure™ technology, which is designed to prevent data breaches due to loss or theft on the road, in the  office and in the data center. Wave uses Seagate Secure technology to enable secure disposal and repurposing of drives for both local and remote management scenarios.

The Seagate® Momentus® 5400.3 FDE drive also delivers up to 320 GB of secure digital storage and two types of hardware encryption. Consumers who simply require hardware-based encryption can purchase the BIOS FDE version of the drive with Wave’s TDM software to get easy, strong encryption with no performance impact. For corporate or small to medium businesses that require security management, the Enterprise mode FDE drive delivers technology to comply with regulations for security auditing and personal information protection.

About Seagate
Seagate is the worldwide leader in the design, manufacture and marketing of hard disk drives and storage solutions, providing products for a wide-range of applications, including Enterprise, Desktop, Mobile Computing, Consumer Electronics and Branded Solutions. Seagate’s business model leverages technology leadership and world-class manufacturing to deliver industry-leading innovation and quality to its global customers, with the goal of being the time-to-market leader in all markets in which it participates. The company is committed to providing award-winning products, customer support and reliability to meet the world’s growing demand for information storage. Seagate can be found around the globe and at http://www.seagate.com.

Seagate and Seagate Technology are registered trademarks of Seagate Technology LLC in the United States and/or other countries. Momentus, Seagate Secure and G-Force Protection are either trademarks or registered trademarks of Seagate Technology LLC or one of its affiliated companies in the United States and/or other countries. All other trademarks or registered trademarks are the property of their respective owners.

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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.

Safe Harbor for Forward Looking Statements

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