Lee, MA
May 9, 2011

Wave Systems Corp. (NASDAQ:WAVX www.wave.com) announced today that Chief Scientist Dr. Robert Thibadeau will discuss data breach, regulatory compliance and the role of hardware-based encryption at Secure360°™ in St. Paul, MN, on May 10th. Thibadeau will be joined by renowned attorney and security expert Ms. Lucy Thomson, of CSC. Thomson is Vice Chair of the American Bar Association's (ABA) Section of Science & Technology Law.

Forty-six states and the District of Columbia have enacted data breach notification laws. The consequences of unauthorized data exposure—both financial and reputational—have never been higher, with the average cost per data breach reaching an estimated $7.2 million per incident, according to the Ponemon Institute's 2010 annual study.

"Ignore the problem of data breaches at your own peril," commented Thomson. "Lawsuits have been filed in almost every case involving a major data breach."

Most organizations recognize that preventative, proactive security strategies are necessary to avoid a breach. What many IT decision makers do not realize, however, is that not all encryption solutions are created equal, and simply having encryption in place does not guarantee protection from a data breach. What hardware-based encryption, specifically the self-encrypting drive (SED), can offer is greater assurance that sensitive data is protected at all times, even when the device is no longer under the owner's physical control.

"Ask yourself this question: Can I prove that my data was encrypted at the time I lost that laptop?" asked Dr. Thibadeau. "If the answer is no, most likely your encryption solution will not protect you from breach laws in court."

WHAT:  "Encryption, Data Breaches, and Legal Safe Harbor"
WHEN: Tuesday, May 10th, 2011 from 10:10 am — 11:00 am CT
WHERE: St. Paul River Centre, St. Paul, MN

Thibadeau and Thomson will address the overlap in technological and legal considerations in order to help attendees understand how to implement a security solution that includes legally defensible encryption. Clarification of breach laws and encryption requirements will help attendees assess their own solution and leave with the knowledge of whether or not it could stand up in court. Thomson and Thibadeau co-authored the Data Breach and Encryption Handbook, which was published by the ABA in February. Thibadeau sits on the ABA's eDiscovery and Digital Evidence Committee, and Thomson serves as Vice Chair of the ABA Section of Science & Technology Law.

For more information please contact:

Wave Contact:
Michael Wheeler
Wave Systems Corp.
413-243-7026
mwheeler@wave.com

Investor Relations:
David Collins, Eric Lentini
Catalyst Global LLC
212-924-9800 office / 917-734-0339 mobile
wavx@catalyst-ir.com