Wave Systems to Feature Trusted Computing Solutions At 2005 U.S. ARMY DOIM Conference.

LEE, Mass. -- Wave Systems Corp. (NASDAQ:WAVX) today announced its EMBASSY(R) Trust Suite solutions will be demonstrated August 23-25 at Booth 1540 at the 2005 DOIM Conference, co-sponsored by AFCEA International and the U.S. Army Directorate of Information Management. The conference will be held at the Broward County Convention Center, Ft. Lauderdale, FL.

"Wave believes its trusted computing software suite offers secure, easy to use, easy to manage solutions for protecting computer data for a range of government and military applications," said Steven Sprague, Wave president. "Wave's advanced solutions are designed to deliver biometric authentication, smart card authentication, password authentication and machine authentication of a user's personal computer to a government or enterprise server. Wave has designed these trusted computing solutions to give Army information management administrators more flexibility and increased options in managing its data networks such as in FiXs and DCCIS environments."

Wave is a founding member of the Federation for Identity and Cross-Credentialing Systems, Inc. (FiXs). The non-profit federation is a coalition of industry and associations that have created and deployed an interoperable identity cross-credentialing network that is FIPS 201, PIV I compliant. The FiXs network is based on a set of operating rules, interface specifications and a supporting infrastructure that enable it to interoperate with the Defense Identification and Cross-Credentialing System (DCCIS). This system interoperability allows trusted credentials issued by FiXs members to be authenticated at Department of Defense (DoD) sites and DoD employee credentials to be authenticated at industry sites. Industry members' credentials can also be authenticated at other industry members' sites. As a founding member, Wave is taking a leadership role in this landmark federation.

At the forum Wave will highlight its trusted computing solutions for the government, homeland security and national defense markets, including its EMBASSY Trust Suite software and its Key Transfer Manager. Wave's trusted computing solutions work with a Trusted Computing Group (TCG)-compliant Trusted Platform Module (TPM) - a chip embedded inside a PC. Millions of PCs have been shipped by the industry with TPMs installed. A TPM provides the resources used by Wave's EMBASSY software to implement secure functions within a PC.

Wave's EMBASSY Trust Suite, developed to TCG specification and designed to be compatible with the Microsoft Office(R) environment, is designed to deliver a variety of PC-related security and productivity tasks, in an intuitive, easy-to-understand format. The hallmark of EMBASSY(R) Trust Suite solutions is usability - designed to be easy to enable, easy to use and easy to manage by IT administrators. Wave's Key Transfer Manager is designed to help backup and protect the hardware encryption keys.

More information about EMBASSY Trust Suite products is available through Wave Systems at www.wave.com/products/ets.html.

About Wave Systems

Consumers and businesses are demanding a computing environment that is more trusted, private, safe and secure. Wave is the 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.

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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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