Nasdaq Panel Approves the Continued Listing of Wave System's Common Stock on The Nasdaq Global Market

Wave Systems Corp. (NASDAQ: WAVX) announced today that
it has received notification from the Listing Qualifications Panel of
The Nasdaq Stock Market of the Panel's decision to continue the
listing of Wave's common stock on the Nasdaq Global Market (formerly
called the Nasdaq National Market). The decision followed Wave's
regaining compliance with Nasdaq Marketplace Rule 4450(b)(4) which
requires a minimum bid price of $1.00 per share. Wave completed a
1-for-3 reverse split of its common stock, effective close of business
on July 25, 2006, which had the effect of enabling the Company to
regain compliance with the $1.00 minimum bid price rule.
   Per Nasdaq practice, Wave's common stock is currently trading
under the symbol "WAVXD" for 20 business days, following which it will
revert to is normal trading symbol: "WAVX."
   Steven Sprague, CEO of Wave, commented, "We are pleased that our
decision to effect a reverse split has enabled us to regain compliance
with the continued listing requirements of the Nasdaq Global Market.
We view our continued listing on the Nasdaq Global Market as important
to the strategic interests of our Company and its stockholders."

   About Wave Systems

   Wave Systems solves the most critical security problems for
enterprises and government with software solutions that are
trustworthy, reliable, easy to use, and offer a speedy return on
investment. Wave's trusted computing software solutions include strong
authentication, data protection, advanced password management and
enterprise-wide trust management services. For more information 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 the
potential that Wave may be de-listed from the Nasdaq National Market
or may not qualify for listing on the Nasdaq Capital Market, 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.