Wave Solutions Now Available through HP’s Direct Sales Force and VAR Channels

Wave Security Software Provides Management for Growing Deployments of Self-Encrypting Drives and Embedded Hardware Security

Lee, MANovember 18, 2009 — Wave Systems Corp. (NASDAQ: WAVX — www.wave.com) announced today that it has signed a license agreement that permits HP to offer Wave’s security solutions on a resale basis through HP’s Software Licensing and Management Solutions (SLMS)/Third Party Solutions (3PS) Group.

As the number of reported data breaches continues to grow, protecting sensitive personal data is a top concern for many enterprises. Full disk encryption (FDE) is a preferred mechanism to handle this threat. Traditional software-based FDE can be costly, time-consuming to deploy and has a negative impact on PC performance. It can also be vulnerable to a specific type of attack where encryption keys are recovered in RAM.

Hardware-based FDE, in the form of self-encrypting drives, offers advantages related to speed, total cost of ownership and security. The drives are installed in the factory, so encryption is “always on” and processing speeds aren’t affected.

Pursuant to HP’s reseller arrangement with Wave, HP can now offer to its enterprise customers Wave’s EMBASSY® Trusted Drive Manager software for pre-boot authentication and initialization of self-encrypting drives. The agreement also allows HP to sell Wave’s EMBASSY Remote Administration Server (ERAS), which provides centralized deployment and management of self-encrypting drives. ERAS also allows IT to perform a remote secure erase, which eliminates the significant cost of “wiping” the drives clean. Event logs also assist in compliance reporting. 

The reseller agreement does not provide for guaranteed minimum shipped quantities or royalties.

“Wave’s data-at-rest software solution has been successfully deployed by enterprises worldwide,” said Brian Berger, Wave’s Executive Vice President of Marketing and Sales. “These solutions can provide ease of use and reduced ownership costs, along with the peace of mind that comes with having a fully managed, hardware-based encryption solution for the enterprise.”

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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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This press release may contain forward-looking information within the meaning of the Private Securities Litigation Reform Act of 1995 and 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.  Wave assumes no duty to and does not undertake to update forward-looking statements.

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For more information please contact:

Wave Systems Corp.
Michael Wheeler