Security Solutions Combining Smart Card and Trusted Computing Software Technologies to be demonstrated at the CardTech/SecurTech Annual Conference April 12-14, 2005 in Las Vegas

Munich, Germany and Lee, MA, USA April 12, 2005–Giesecke & Devrient (G&D) and Wave Systems Corp. (NASDAQ:WAVX) have formed a strategic alliance to offer an enhanced security solution to address the trusted computing market. In the IT sector, high complexity and a wide spectrum of applications are boosting the demand for security solutions among private users and businesses alike. The challenge is to devise comprehensive solutions that can satisfy customers’ security needs. Increasingly, what are known as Trusted Platform Modules (TPM) are being incorporated into personal computers for a more trustworthy computing environment.

The TPM is a processor which is integrated into the PC motherboard as a separate chip. Use of smart card technology adds a further component to the security solution: The card serves as a key to the computer, preventing unauthorized access to system and data. Giesecke & Devrient (G&D) and Wave Systems have formed a strategic alliance to market a comprehensive security solution that integrates both components.

The G&D-Wave Systems collaboration will address the organizations’ joint development activities in the fields of smart card technology and trusted computing software. The aim is to leverage the combination of smart card technology and TPM associated software to offer clients in industry and government a comprehensive, flexible and easy-to-use security solution.

Both partners are members of the Trusted Computing Group (TCG), an organization founded in 2003 by leading enterprises in the IT sector to develop open standards for a new generation of secure hardware and software products in virtually all application areas. “Multifactor authentication enabled by systems with TPMs and with smart cards helps IT managers further secure systems and data in the enterprise,” said Brian Berger, TCG marketing work group chair. “The increasing availability and usage of systems with TPMs has enabled a number of security innovations that will help both IT and users.”

In a secure platform environment, the TPM’s task is to protect and generate secret keys, and store system configurations safely. The TPM also functions as a hardware-based security mechanism that prevents system changes caused by virus attacks. “The combination of trusted computing with smart card technology shows a lot of complementary advantages. As an integrated part of the motherboard, trusted platform modules provide an early integrity control from software and hardware as well as identity control of the entire PC system. The addition of chip card technology, e.g. as smart card or smart USB token, enables portable user identification to achieve a reliable and flexible security solution,” said Andreas Raeschmeier, Head of Business Development at Giesecke & Devrient. Using smart card technology ensures that only users who can authenticate themselves with a card or token, plus the associated PIN, can gain access to the computer or network. “Smart card technology is flexible and easy to use. Users only have to enter a four-digit PIN instead of a 20-digit passphrase. Possession of the card and knowledge of the PIN provide maximum security, and are user-friendly as well,” said Andreas Raeschmeier, pointing out the advantages of smart card technology.

IT security departments have different security requirements, extending from protection of sensitive data and access control through hard disk encryption to management of hardware and software configuration. In all of these, the trusted platform module can provide valuable support. “Wave is pleased to be partnering with G&D, a leader in the smart card market, which has strong established relationships in enterprise and government markets in Europe and beyond,” said Steven Sprague, Wave System’s president and CEO. “We believe G&D’s technology leadership can help further the adoption of trusted computing solutions in these geographical and business markets.”

Wave’s EMBASSY Trust Suite (ETS) secure software capabilities being demonstrated with G&D at CardTech/SecurTech include security policy management, key archive and management, digital signature, file and folder encryption, secure email, secure wireless authentication and storage and automation of user names, passwords and personal information.

For more information on demonstrations at CardTech/SecurTech, please contact the sales organizations of either company.

About Giesecke & Devrient:

Giesecke & Devrient (G&D) is a technology leader in the field of smart cards, providing smart card based solutions for the areas of telecommunications, electronic payment, health care, ID, transportation, and IT security (PKI). G&D is also a leading producer of banknotes and security documents, and dominant in the field of currency automation. Based in Munich, Germany, the G&D Group operates subsidiaries and joint ventures around the world. In fiscal 2003, the group employed some 6800 people and generated revenue of €1.05 billion. For more information, please visit our Web site at http://www.gi-de.com.

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.