Wave to Support Trusted Computing Group's Security Specifications for Mobile Phones; Pledges to Extend EMBASSY® Trust Suite Functionality in Line with MTM Standards

Business Wire, Sept 13, 2006

LEE, Mass. -- Wave Systems Corp. (NASDAQ: WAVX; www.wave.com), a leading supplier of security software products and services for Trusted Computing and a founding member of the Trusted Computing Group (TCG) (www.trustedcomputinggroup.org), announced plans to extend its EMBASSY(R) Trust Suite software in support of the newly published TCG security specifications for mobile phones. The announcement of the open, non-proprietary security specifications called Mobile Trusted Module (MTM) came this week at the Cellular Telecommunications & Internet Association Conference in Los Angeles.

Once implemented, the industry-endorsed standards will enable users to strongly authenticate their mobile devices to their PCs in order to replicate sensitive personal information, such as address books and digital wallets, as well as to determine the "trustworthiness" of a given mobile phone. The specifications also call for the use of a common key management infrastructure for the protection and backup of passwords and important data.

"As mobile phones have evolved into multi-function communications devices with robust connectivity to voice, e-mail, corporate networks and the Internet, the requirement for stronger security has never been greater," noted Lark Allen, Executive Vice President, Wave Systems. "The TCG mobile phone specifications represent an industry-wide effort to define an open security standard that will bring benefits to many involved with mobile devices, from the end-user to the network provider to the device manufacturer."

"Wave looks forward to working with our industry partners to deliver TCG-based support for mobile devices in addition to currently supported TPM-based PCs and trusted encrypting disk drives," he added.

With its endorsement of the mobile phone specifications, Wave has signaled its intention to adapt its EMBASSY Trust Suite (ETS) PC and server software to work with the TCG standards developed for the mobile phone arena. Wave's ETS is now designed to help users manage the Trusted Platform Modules (TPMs) on their PCs, with functionality that includes storing and recalling passwords and logon information, document protection, digital signatures and robust key management. The MTM operates in a similar fashion as a TPM, but has been adapted for mobile phones.

About the TCG's Mobile Trusted Module (MTM) Specifications:

The MTM specification represents a first step towards a stronger security solution for enhanced user privacy and reduced risk of handset theft. Moreover, the specification should enable the development of advanced applications and services within the mobile industry environment.

MTM is an open specification for common TCG security building block functions which can be used in a mobile phone security solution. A phone that employs this technology would typically contain multiple MTMs, all of which provide similar functionality to existing TPMs and some of which have additional functionality to boot parts of a phone into a preset state, as described below. The MTM includes many of the same requirements as TCG specifications for TPMs for personal computers. However, the MTM specifications also provide new functions which have been developed specifically for mobile devices. Some adaptations are a response to restrictions inherent in today's phone technologies.

MTMs built using the TCG specification are called Mobile Local-owner Trusted Modules (MLTMs). Additionally, a second type of MTM implementation enables the phone to boot into preset states. These MTMs are called Mobile Remote-owner Trusted Modules (MRTMs), since they enable remote entities (such as the phone manufacturer and the cellular network provider) to preset the operation of some parts of the phone (such as access to the 15-character International Mobile Equipment Identity -IMEI and the cellular network).

The TCG aim has been to develop safer mobile platforms and establish an open industry standard for the increasingly sophisticated mobile phone ecosystem that offers added value to private users, businesses, IT companies and networks. In a nutshell, the Mobile Trusted Module is a verifiable security component that enables a trusted computing framework for mobile devices in the environment in which they are used.

Copies of the TCG Mobile Phone specification can be found at www.trustedcomputinggroup.org

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.

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.