Wave’s EMBASSY Trust Suite to Support DigitalPersona Pro Fingerprint Authentication Server

Endpoint Security Enhanced by the Combination of User and Machine Authentication

March 28, 2007

Lee, MA — Wave Systems Corp. (NASDAQ: WAVX) announced today that it has entered into a license agreement with DigitalPersona, Inc. permitting Wave to incorporate the DigitalPersona® Pro Fingerprint Authentication technology into the EMBASSY Trust Suite® (ETS) Enterprise Edition product family.

Wave’s Embassy Trust Suite is a collection of practical, easy-to-use applications that can allow enterprises to enhance PC security by utilizing the Trusted Platform Module (TPM) security chip. The DigitalPersona Pro Server leverages Microsoft® Active Directory to provide secure, centrally managed fingerprint authentication services to an enterprise network.

At the endpoints of all networks sit two distinct entities – the platform, such as a notebook or desktop PC, and the user. Each of these entities could pose security risks. The platform may be corrupted with malware and users may not securely protect their passwords. Most anti-virus software and complex password policies only put a bandage on these problems. To address this, many PC makers are now incorporating platform security solutions such as TPMs and fingerprint readers. Today’s announcement brings together Wave, a leader in secure enterprise software solutions and management for TPM’s, and DigitalPersona, a leader in enterprise software for fingerprint authentication.

“This support will allow enterprises using Wave’s ETS Enterprise products to use the DigitalPersona Pro Server to centrally manage fingerprint authentication policies and credentials via Active Directory. The synergy of DigitalPersona products with Wave Systems’ TPM remote management, key recovery, escrow and migration products for Active Directory provide important security back-office components for the enterprise customer,” commented Brian Berger, executive vice president of marketing and sales for Wave Systems.

Peter McCoy, vice president of business development for DigitalPersona added, “Enterprises are beginning to take a holistic approach to security, combining the authentication of both the machine and the user. DigitalPersona is excited to work with Wave Systems to provide the power and flexibility of our DigitalPersona Pro fingerprint authentication server component. We believe this combined offering provides a valuable asset to enterprise IT.”

The EMBASSY Trust Suite with DigitalPersona Pro Server support is expected to be available in 2007 as part of Wave’s ETS Enterprise Edition Software.

About DigitalPersona

DigitalPersona is the leading provider of biometric authentication solutions for enterprise networks, developers and consumer OEMs. Founded in 1996, the company designs, manufactures and sells flexible solutions that improve security and regulatory compliance while resolving password management problems. DigitalPersona’s fingerprint readers utilize superior optical fingerprint scanning technology to more accurately authenticate users regardless of finger placement. The company’s interoperable biometric software solutions uniquely support the industry's widest array of notebooks with fingerprint readers in addition to its own line of optical placement readers. DigitalPersona’s award-winning technology is used worldwide by over 30 million people in the most diverse and challenging environments for fingerprint authentication. For more information contact DigitalPersona, Inc. at +1 650.474.4000, or visit www.digitalpersona.com.

About Wave Systems Corp.

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 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.