Wave Systems Corp. (fka WAVXQ)

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IdentiPHI.

Acquisition broadens IdentiPHI's product base to provide enterprise-grade security to its customers.

AUSTIN, Texas, March 13 /PRNewswire/ -- IdentiPHI LLC, announces the purchase of SAFsolution and SAFmodule software from Saflink(R) Corporation and received certain rights under Saflink's patent portfolio. The terms of the agreement were composed of an up-front cash investment as well as ongoing royalties for three years. As part of this agreement, IdentiPHI will assume responsibility for all SAFsolution and SAFmodule customers and resellers.

SAFsolution and SAFmodule are market-leading biometric authentication products that provide enterprise-level security solutions for corporate and government users. Strong authentication methods such as smart cards and fingerprints as well as other biometric methods such as facial recognition, iris, and retina pattern may be used to authenticate users to corporate resources. SAFsolution integrates Microsoft(R) Windows(R) Active Directory to boost network and workstation authentication security and simplify or eliminate password management. SAFmodule brings biometric authentication to Novell(R) eDirectory(TM) networks.

IdentiPHI has been in the authentication and identity management market as an OEM provider of integrated third party products for many years. This acquisition allows IdentiPHI to manage and develop its own intellectual property. IdentiPHI will continue to maintain and grow the existing partnership with Bio-Key International to provide the biometric middleware which will allow IdentiPHI to maintain a hardware-agnostic approach to support biometric hardware.

IdentiPHI will be releasing a major update of the SAFsolution code in summer 2007 to support Microsoft Vista as well as 64-bit versions of Server 2003 and Longhorn. Subsequent releases in late 2007 will incorporate additional security features such as Trusted Platform Module support for key management applications and file / folder encryption. IdentiPHI will further expand on the software offerings of other partners to enhance biometric support to our IdentiPHI Single Sign-On product which is an OEM from ActivIdentity.

"The acquisition of an industry leading brand combined with ourexisting market experience will clearly place IdentiPHI at the top position in this marketplace. The biometric market has been expanding recently as more and more computer manufacturers are imbedding sensors into their notebook platforms. This is the sign that biometrics have made the mainstream and we see exponential growth from here." says Peter Gilbert, CEO of IdentiPHI.

In addition to the software products acquired, IdentiPHI received a royalty-free, non-exclusive license right of use for Saflink's Patent No. 6,618,806, or 806 Patent, issued September 9, 2003. The terms of the agreement include provisions for IdentiPHI to jointly enforce and seek remedies from infringers of this patent with Saflink. Many existing biometric solution providers use a matching process similar to the one outlined in the 806 patent. The 806 Patent is a process for controlling access to a computer network using biometric authentication. The patent primarily addresses a critical step in biometric authentication – the policy system. The invention provides the flexibility administrators need to tailor biometric security for users within their organization. This
patent describes how to control access in a computer network environment with a policy-based biometric authentication solution. For instance, it applies to systems that obtain a user's ID, determines which biometric to use for authentication (using either a user-specific policy or a system default policy), captures the user's biometric, compares the live sample to a record on file, and allows the user to log on if matched

IdentiPHI has partnered with Dell for FOSE 2007 in Washington DC. Stop by to see SAFsolution as well as encryption solutions for US Federal government and the Dell HSPD-12 order ready package.

Wave sold 200,000 shares of Saflink common stock for total proceeds of $289,003, during the quarter ended September 30, 2005, at an average selling price of $1.45 per share, realizing an aggregate gain from the sales of $92,340. Wave did not hold any marketable securities during the quarter ended September 30, 2006.
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An additional source of cash to fund operations for the twelve-month period ending September 30, 2006 will likely come from the sales of its marketable securities, valued as of September 30, 2005 at approximately $69,216, which consist of 59,670 shares of Saflink's common stock. Wave may sell some or all of its holdings in Saflink, as needed to fund its operations for the twelve-month period ending September 30, 2006.
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Saflink finishes acquisition of SSP-Litronic

Saflink Corp., a provider of biometric security solutions, has completed its $50 million acquisition of SSP-Litronic Inc., a provider of identity management and information assurance products, the company announced today. The purchase was announced March 22. SSP-Litronic of Irvine, Calf. will now operate as a wholly owned subsidiary of Saflink of Bellevue, Wash., the company said.

The purchase will boost Saflink’s authentication offerings through the integration of SSP-Litronic’s identity management products with Saflink’s biometric software. It also will position Saflink for large-scale government security projects, the company said.

The acquisition will let Saflink offer government agencies and commercial enterprises a scaleable and secure framework for identity and assurance management that covers network and application security, physical security, time and attendance, and regulatory compliance for automated manufacturing systems.
The two companies have provided solutions to the National Security Agency, FBI, CIA, Army Corps of Engineers, Environmental Protection Agency, House of Representatives and the departments of Defense, Homeland Security, State, Treasury and Transportation.

June 25, 2001
The World's First, Secure, Real-Time Environment Establishes New
Revenue Channels for Digital Distribution and Safeguards
Intellectual Property Rights

SSP Solutions, supplier of Internet security solutions for finance, health care, business, e-commerce, and entertainment, today announced EDS (NYSE:EDS), the leading global services company, has completed successful testing of the SSP Solution Suite Core Technologies. This successful testing continues to advance SSP as the Trusted Symbol of the Digital Economy. SSP, in conjunction with Wave Systems (Nasdaq:WAVX), offers the first open embedded security architecture simultaneously supporting public key infrastructure (PKI) and multiple standards of digital rights management (DRM).
"EDS' successful testing represents a significant step in market leadership for the SSP Solution Suite of hardware, software, and embedded security products," said Mark McGovern, senior technical director of EDS' Information Assurance Group.
"With no single competitor able to match the elegance of the open, embedded SSP Solution Suite -- its ability to move data without compromise, its focus on protecting revenue streams, and its directive for mass deployment, we are in an enviable market position," said Marvin Winkler, chairman and chief executive officer SSP Solutions.

"With the SSP Solution Suite, SSP is providing a continuously encrypted and controlled mechanism for point-to-point digital communication -- safeguarding intellectual property and establishing new revenue channels in the digital distribution process," said Rob Gorman, president of SSP Solutions. "Historically, open systems for effective digital rights management and practical compensation models have been notably absent. SSP's development represents an important shift in the security arena."

"Wave and SSP have dedicated significant resources to delivering the industry's first comprehensive trust infrastructure, tools, and device components required to create, deploy, and manage Trusted Client hardware devices which are open, shared, and programmable," said Steven Sprague, president and CEO, Wave Systems. "The breakthrough architecture achieved with the SSP EMBASSY(R) Trust System provides the capability for multiple entities, such as service providers, content owners, and individuals, to share a single device while trusting that their individual interests are strongly protected from both local and network sources of attack."
SSP technology, designed to create a secure Internet environment from server to user -- or from the Core to the Edge(TM) of the Internet, delivers a secure, real-time revenue producing environment for content developers and distributors, and brings seamless security and ease of use to the consumer. SSP provides the means for manufacturers of set-top boxes, PCs, PDAs (personal digital assistants), satellite receivers, and other Internet Edge appliances to operate in a secure and trusted environment.

About SSP Solutions
SSP Solutions develops and distributes the SSP(TM) Solution Suite of hardware, software, and embedded security products designed to create a secure Internet environment from server to user -- or from the Core to the Edge(TM) of the Internet. SSP products embed security and trust throughout the transaction chain, protecting electronic communications and financial transactions, network access, and the exchange of copyrighted digital content.

By combining a range of partners, technologies, and intellectual properties, SSP products represent the first, open embedded security architecture simultaneously supporting public key infrastructure (PKI) and multiple standards of digital rights management. SSP's custom-made enterprise security solutions address digital rights management, financial services, government, entertainment, health care, and education -- and form the heart of a 10-year alliance with EDS, the nation's second largest systems integrator and a global leader in information assurance.

SSP Solutions includes XNS (eXtensible Name Service) an open platform using trusted web agents to manage transactions across the information exchange layer of the Internet. This fosters a new level of trusted electronic commerce and redefines the ways people and businesses share information.

SSP Solutions recently announced its intent to merge with Litronic Inc. (Nasdaq:LTNX), a leading provider of authentication and encryption security technology, and form a new entity called SSP Solutions Inc., named for the flagship SSP product line. For additional company information, visit http://www.bizssp.com or call949/655-4500.

About Wave Systems Corp.
Wave Systems' goal is to build a worldwide network of users based on trusted electronic relationships. Trust @ the Edge defines a new architectural model for the Internet, which embeds trust and security in every user device. Wave Systems is developing, deploying, and licensing its EMBASSY Trusted Client technology for the mass adoption of this revolutionary model.
Wave is integrating industry standard functions from a wide range of partners that enable reliable, secure digital exchange, and commerce. Wave Systems and third parties are building the services that will take advantage of this open model.

Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995
With the exception of historical information, the matters discussed in this news release relating to (i) future business opportunities, (ii) future revenues, (iii) market demand and penetration, (iv) product development and future product releases and product performance, (v) hiring goals, (vi) SSP's ability to expand into new markets, (vii) commercial demand for products, and (viii) the completion of the merger and timing of the closing are forward-looking statements that involve a number of risks and uncertainties. These risks and uncertainties include (i) competition from companies with greater financial and technical resources than Litronic or SSP, (ii) the difficulty in continuing technical innovation and the acceptance of SSP's products in the government and commercial marketplace, and (iii) completion of the merger which is dependent on the execution of a definitive reorganization agreement, approval of the stockholders of each company, and other material conditions. In addition, the success of SSP depends on, among other things, the ability to integrate Litronic products with those of other SSP business partners, the smooth integration of Litronic and SSP personnel, the ability to attract and retain qualified personnel (particularly in light of the competitive market for technical personnel), and receipt of significant orders from commercial customers. Other risks inherent in Litronic's business are described in Securities and Exchange Commission filings. Litronic undertakes no obligation to revise or update any forward-looking statements to reflect events or circumstances after the date of this release.