CYBER-COMM SELECTS WAVE SYSTEMS FOR E-COMMERCE IN EUROPE.

Wave Systems Corp., (Nasdaq:WAVX)(http://www.wave.com), Lee, Mass., a provider of e-commerce, content distribution and security services, has signed an agreement with Cyber-COMM to license Wave's EMBASSY technology for the development of a European network of enhanced smart card readers for conducting e-commerce.

Cyber-COMM(R) is a company led by Europe's largest banks whose mandate is to find technology solutions to solve online consumer security, trust and privacy issues.

Under terms of the agreement, Wave's EMBASSY technology will be included in the reference platform for Cyber-COMM(R) enhanced smart card readers and PC keyboards. The agreement also allows for Cyber-COMM(R) to sub-license Wave's EMBASSY technology to third party vendors who will use it to develop "trusted devices" for secure e-commerce.

Cyber-COMM(R) is an active participant of FINREAD, a European Commission project that is issuing public specifications for a common secure smart card reader for e-commerce. FINREAD members include VISA International, EUROPAY International, Groupement des cartes Bancaires (the French consortium for banking smart cards), SIZ (Germany), INTERPAY (Netherlands), BANKSYS (Belgium), BULL and Cyber-COMM(R).

"The European banking community wishes to greatly improve and expand the e-commerce, home banking, and overall online financial services available to its 80 million customers," said Herve Sitruk, CEO of Cyber-COMM(R). "Consumers need trust and confidence, merchants need a way of guaranteeing payments, and banks need an infrastructure that minimizes the risks of fraud. Cyber-COMM(R), as a member of FINREAD, will help set the standard for secure payments and privacy in Europe. An infrastructure of trust deployed through a consumer-accepted smart card platform will propel Europe into the 21st century and digital commerce."

"Cyber-COMM(R) represents the leading financial institutions who are responsible for providing consumers and merchants with secure payment systems. Wave is very excited to be part of their plan to address the need for secure payments in cyberspace," said Steven Sprague, president of Wave Systems. "By providing the trusted computing technology for e-commerce in Europe, Wave is at the foundation of building an infrastructure of trust, which will allow for broad deployment of EMBASSY applications and services to millions of consumers on the Internet."

"European financial institutions are taking a very aggressive role in partnering with leading technology vendors to provide consumers with an e-commerce infrastructure that will address the obstacles to a digital economy," said Claude Meggle, director of security for Cyber-COMM(R). "We feel that many of these obstacles, such as a lack of privacy standards and the absence of consumer confidence in online transactions, can be eliminated by Wave's EMBASSY trusted computing solution."

Wave Systems Corp.'s EMBASSY Technology

The EMBASSY (EMBedded Application Security System) System is a programmable, open standards based platform for running secure applications and protecting important data and digital identities on individual PCs, peripherals, and other end user devices such as set-top boxes, PDAs, USB ports, etc. Implemented on a secure co-processor, EMBASSY is a software and hardware based solution that provides a trusted environment inside the PC or device for e-commerce transactions while protecting user identities, keys and critical consumer financial information.

For Cyber-COMM(R)., EMBASSY creates a firewall between the smart card reader and the personal computer, which secures multi-level authentication and transaction functions within the smart card reader. This design allows for the use of inexpensive "signing only" smart cards while substantially increasing the transactional security compared to the traditional approach: a passthrough reader where all intelligence and security resides on a smart card. Key features include secure input and secure output and the ability to download information to secure memory. EMBASSY is the first product to support the European requirements for trusted smart card readers.

About Wave Systems Corp.

Founded in 1988, the mission of Wave Systems Corp. is to create the world's best technologies and services to secure and sell digital information. With the recently completed acquisition of N*Able Technologies, Wave now has a comprehensive line of trusted client co-processor systems. Wave's technology is an inexpensive, open standards, hardware and software-based device that enables secure transaction processing and distributed information metering in users' PCs. Embedded in PC hardware and peripherals, set-top boxes and other devices, Wave's trusted client technology is the foundation for client-based security applications and a new distribution and purchasing model for content and services. This low-cost, secure "system within a system" will enable the personal computer to assume an important new role in the evolving digital economy. By moving secure transactions to the desktop, Wave provides intrinsic value to the electronic commerce process, benefiting PC users, application developers, and hardware manufacturers. For more information, please visit Wave's corporate web site at http://www.wave.com.

About Cyber-COMM

Cyber-COMM(R) is a company created by the major French Banks, Banques Populaires,BNP, Caisses d'Epargne, CCF, Credit Agricole, Credit Lyonnais, Credit Mutuel,, La Poste, Societe Generale with participation of international organizations (VISA, EUROPAY), French card organizations (Carte Bleue, Cartes Bancaires), manufacturers such as GEMPLUS, Oberthur, BULL and a Telecom operator France Telecom. The first mission of Cyber-COMM(R) is to develop a unique secure payment system over the Internet, using SET protocol and smart cards and, thus, to boost e-commerce. Cyber-COMM(R) acts as the first PKI to certify secure readers and applications that are going to use those readers.

For more information, call 408/261-9510.