Wave to Demonstrate Role of Device Identity in Improving Supply Chain Security at TSCP Business Week, Sept. 14-16

Lee, MA & Leesburg, VA September 14, 2010 — Wave Systems Corp. (NASDAQ:WAVX www.wave.com) today announced that it will conduct a series of demonstrations on the use of hardware security for establishing device authentication at the Transglobal Secure Collaboration Program (TSCP) Business Week Expo at the Lansdowne Resort, Sept. 14-16. TSCP is a government-industry partnership focused on designing solutions for the most critical IT security issues facing the aerospace and defense (A&D) industry.

"TSCP’s Business Week Expo is a venue for TSCP members to showcase existing and future secure information sharing capabilities for the aerospace and defense community," said Keith Ward, TSCP chairman. "Participating companies are the backbone of secure collaboration and the foundation of the public-private partnership. These companies are reducing the risk of Advanced Persistent Threat while keeping overall program costs in control."

Device authentication—knowing which devices are on the network—is a critical step forward in creating trust in computer and Internet security, and has been successfully adopted by the cellular and cable industries to limit unauthorized network access. The Trusted Platform Module (TPM), a cryptographic security chip residing on virtually all business-class PCs is unique in that it can be used for both user and device authentication. Unique capabilities include protecting keys and identities, and forming a hardware-based foundation of trust. Enterprises that activate their TPMs can enforce integrity management, attestation and other functions.

Representatives from Wave will be on hand to demonstrate a number of different applications for the TPM, including its role in strengthening security for VPNs and wireless networks. (Using the TPM in the creation of a digital certificate provides hardware-level security of the private key functions and ensures device identity.)  

Since Wave joined TSCP, several member companies and TSCP government members have begun piloting or evaluating use of TPMs. This development follows renewed interest from the government; in July, the White House and Department of Homeland Security published, "National Strategy for Trusted Identities," which specified TPMs for machine identity. The Army and Air Force require that all purchased laptops and desktops contain a TPM.

About TSCP
TSCP is the only global government-industry partnership specifically focused on designing solutions to address the most critical issues facing the A&D industry: mitigating the compliance, complexity, cost and IT security risks inherent in large-scale, multi-national collaborative programs. TSCP was founded in 2002, and has delivered several specifications and guidance documents on securing A&D supply chain data. The group today focuses on identity federation policies and governance. TSCP is open to government organizations, prime contractors, integrators, suppliers and member trade groups. For more information, please visit www.tscp.org.

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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:

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

Contact:

TSCP
Nina Gill
617-969-9192
ngill@corporateink.com