Wave Announces Availability of EMBASSY(R) Embassy Network Access Control and Endpoint Enforcer Security Solutions at InterOp New York.

LEE, Mass. -- Wave Systems Corp.:

--Network Access Control for Existing Infrastructure Available Now: Product Demonstrations at InterOp Trusted Network Connect Event

--Wave's new network security solutions will be demonstrated at InterOp, in a Trusted Network Connect event co-sponsored by Wave on Wednesday, September 20 (Room 2D08 - details below)

Wave Systems Corp. (NASDAQ: WAVX) today announced the availability of two new IT security products, introducing EMBASSY(R) Network Access Control and EMBASSY(R) Endpoint Enforcer. EMBASSY Network Access Control is designed to leverage existing network infrastructure and open industry standards for IT control over which PC clients can be used to access a network, locking out unauthorized machines. EMBASSY Endpoint Enforcer (EEE) is an open, standards-based solution designed to work with many network access control solutions. Wave is demonstrating interoperability with the Trusted Computing Group (TCG) protocol known as Trusted Network Connect (TNC). Wave plans to develop a version of EEE that is also interoperable with Microsoft's(R) NAP and Cisco's(R) NAC architecture.

EMBASSY Network Access Control (ENAC) is a network security solution designed to lock down the network from unauthorized access and to mitigate many common and damaging network attacks. ENAC is designed to provide strong network access security by leveraging the strong identity features in the Trusted Platform Module (TPM) hardware, a security chip housed on tens of millions of PCs shipping today. ENAC builds upon Wave's widely available EMBASSY(R) Trust Suite (ETS) client software, which provides TPM management functions and Public Key Infrastructure (PKI) enrollment functions to embed PKI identity features in TPM-enabled clients and standard Microsoft server PKI infrastructure. Interoperability with unmodified Microsoft server 2003 makes ENAC easy to deploy, and enforcement using GPO and Active Directory makes it easy to manage.

"We believe that EMBASSY Network Access Control fills a market need for network security based on strong platform identity and addresses an immediate opportunity for trusted computing in the enterprise," said Aidan Herbert, senior product manager for Wave Systems. "IT managers that require the client security of TPM hardware security can benefit from an easy, plug-in architecture for their server environments. By providing interoperability with Microsoft server 2003, we believe that EMBASSY Network Access Control can meet many current needs for trusted computing solutions access control with an open, standards-based alternative to proprietary solutions. This offers an easy first step to start adopting the TPM security standards that the industry has started shipping in volume as a new security architecture for PCs."

Wave's EMBASSY Endpoint Enforcer is a network security product that enables third-party applications and services to make informed network access decisions. It is a client and server application designed to capture, report and validate platform integrity metrics on PCs equipped with TPM security chips. Based on validation by EMBASSY Endpoint Enforcer, network access control systems are assured of the integrity of the client system's foundation, including the network access control system itself.

EMBASSY Endpoint Enforcer includes a software developer's kit for integration with any network access control or endpoint integrity solutions desiring to base the security of their solutions on the trustworthiness of TPM hardware. By leveraging the developer's kit, enterprises can tap the power of trusted computing and hardware security to integrate the solution into their existing enterprise security strategy. EMBASSY Endpoint Enforcer is currently compatible with the Trusted Network Connect specification for endpoint integrity that is specified by the Trusted Computing Group but is also designed to accommodate various network access control architectures.

Savings, Security for the Enterprise

A recent study of Department of Justice network crime prosecutions reveals most attacks used stolen IDs and passwords; the average damage was more than $1.5 million per occurrence. The study conducted by Trusted Strategies, L.L.C. shows that the majority of attacks would have been thwarted if platform authentication was used for network access control.

http://www.netsecurity.org/dl/articles/ReportDOJ_Computer_Crime_ Prosecutions.pdf (Due to its length, this URL may need to be copied/pasted into your Internet browser's address field. Remove the extra space if one exists.)

Advanced technologies for network access control improve the enforcement of network security policies to reduce system compromises, downtime, and data loss. IT departments benefit as endpoints, applications, and network equipment work together to efficiently manage security. Choosing the EMBASSY Endpoint Enforcer adds value by (1) allowing users to use many favored platforms, virus software, and security appliances, (2) enabling IT departments to choose among a variety of interoperable solutions, and (3) allowing users to employ an open standards approach that reduces complexity of integration with the use of these open API's from the TCG. The end objective is a healthier and more secure network at a lower total cost of ownership.

See the Products Live at InterOp NY

Wave Systems is demonstrating the advanced features of the Embassy Endpoint Enforcer and a complementary network access control solution at InterOp New York, both in the InterOp Labs and at the Trusted Computing Group event, "Trusted Network Connect and protecting the enterprise network" (Wednesday, September 20, 2006, Javits Convention Center in Room 2D08, 11:00 a.m., 2:15 p.m. and the 4:00 p.m. invitation-only networking reception). Wave is co-sponsoring the event with HP Procurve, Juniper Networks, Patchlink, Trapeze and Vernier Networks. Experts on network access control from leading networking vendors and from the Trusted Computing Group will review network access control solutions, the Trusted Network Connect architecture and its implementations, and multi-vendor demonstrations of TNC products/solutions in deployment.

TNC is a security architecture promoted by the Trusted Computing Group, designed to improve the security policy compliance of clients during the network connection process. TNC establishes a level of network access based on the configuration and integrity of the client. Network administrators implementing Trusted Network Connect solutions expect to have fewer security problems, lower support costs and less downtime caused by poorly configured or infected client systems. Wave Systems has developed the EMBASSY Endpoint Enforcer based upon an upcoming TNC interface specification from the Trusted Computing Group known as Platform Trust Service (IF-PTS).

Wave's demonstrations will show how client measurement and server validation components of EMBASSY Endpoint Enforcer work together with the TPM and network access control solutions to secure its foundation, thus further locking down the security to the corporate network.

"Wave is enthusiastic about providing a hardware-based security option for network access control solutions," said Craig Werhan, senior product manager, Wave Systems. "The added assurance provided by EMBASSY Endpoint Enforcer that a PC or its security components have not been compromised prior to granting access to network resources is the foundation to the whole concept of controlling endpoints and their access to networks."

Wave also offers EMBASSY Trust Suite, the EMBASSY(R) Key Management Server (EKMS), and the EMBASSY(R) Authentication Server (EAS), which are designed to deliver improved trusted computing features for enterprise and government markets. These features include network policy management, data protection, and strong authentication using biometrics, smart cards and TPMs.

For more information about Wave's products and services, please visit www.wave.com.

About Wave Systems

Consumers and businesses are demanding a computing environment that is more trusted, private, safe and secure. Wave is a leader in delivering trusted computing applications and services with advanced products, infrastructure and solutions across multiple trusted platforms from a variety of vendors. Wave holds a portfolio of significant fundamental patents in security and e-commerce applications and employs some of the world's leading security systems architects and engineers. For more information about Wave, visit http://www.wave.com.

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.