WAVXD Wave Systems (MM)

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.