Wave and Winbond Expand License Agreement to Include Wave's EMBASSY® Trust Suite Software

Business Wire, May 11, 2007

LEE, Mass. -- Wave Systems Corp. (NASDAQ: WAVX) and Winbond Electronic Corp. today announced they have amended their existing licensing agreement to include a license for the latest version of Wave's EMBASSY[R] Trust Suite (ETS) Winbond Edition security software. Under the agreement, Winbond is now permitted to bundle and distribute this security software suite from Wave with all of Winbond's Trusted Platform Module (TPM) 1.2 security chips shipping on personal computers. The agreement does not provide for guaranteed minimum or maximum shipped quantities or royalties.

Wave EMBASSY Trust Suite Winbond edition is an application suite that provides users with the latest security software to leverage the TPM, a unique standards-based silicon chip that handles various advanced security tasks on a computer. When combined with Wave Systems' EMBASSY Trust Suite, the TPM performs a variety of business security features, such as security policy management, data protection, password management and strong pre-boot authentication. The TPM/ETS solution substantially improves protection against: password, data and personal information theft and provides enhanced application security, strong wireless authentication, secure email and more - all while increasing productivity. The Winbond edition of ETS supports platforms with the 1.1b or 1.2 versions of Trusted Platform Modules.

"Adding Wave System's EMBASSY Trust Suite to our high performance SafeKeeper[TM] TPM-products portfolio enables our customers to fully utilize the security functions within our TPM devices," said Erez Naory, Senior Director of Winbond Security Products. "Together with Vista native Bitlocker support and EMBASSY Trust Suite applications such as Document Manager, Private Information Manager and Key Transfer Manager, we believe that Winbond now has one of the most complete trusted computing capabilities on the market for PC security, ready to turn on in any computer.

"We are pleased to expand our license relationship with Winbond as we believe it underscores the growing awareness and interest that is being generated for trusted computing solutions within the PC industry. Wave believes the Original Equipment Manufacturer and Original Design Manufacturer channels are important for the distribution of our value-added software solutions, and that Winbond's distribution of higher value solutions for biometrics, key management, data encryption and pin/password management will increase Wave's customer reach," said Brian Berger, executive vice president of marketing and sales. "We are pleased that Winbond is taking a leadership role in providing more alternatives to their customers."

More information about Winbond products is available through www.winbond.com.

More information about EMBASSY Trust Suite and Wave's other products is available through www.wave.com/products/ets.html.> About Winbond

Winbond Electronics Corporation, a global corporation based in Hsinchu, Taiwan is a leading conductor of semiconductor solutions. Winbond designs, develops, markets and sells IC solutions to the global electronics marketplace. Winbond's primary mission is to serve the growing needs of manufacturers of computers, consumer and communication electronics. In May 2005, Winbond Electronics acquired National Semiconductor's Advanced PC (APC) Division, the pioneer in providing many of the PC Logic solutions. Winbond Electronics has some 5,000 employees worldwide with design centers in Hsinchu, Taiwan; Shanghai; San Jose and Torrance, California; Austin, Texas and Tel-Aviv, Israel. For more information about Winbond visit http://www.winbond.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 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.