Wave Systems Corp (WAVXQ) SEC Filing 10-K Annual report for the fiscal year ending Wednesday, December 31, 2008

Exhibit 99.1

Wave’s Q4 and Full Year Net Revenues Rose 75% to $3.3 million and 40% to $8.8 Million — Each Record Levels

2008 Billings Rose 62%, Surpassing $10 Million

Total Shipments of Wave Bundled Software Exceed 44 Million units at Year-end 2008; Industry Shipments of Trusted Platform Module (TPM)-Equipped PCs are Now in Excess of 300 Million

Lee, MA — March 12, 2009 - Wave Systems Corp. (NASDAQ: WAVX) a leading developer of PC security software and services, today reported results for the fourth quarter (Q4) and year ended December 31, 2008 and reviewed recent corporate progress and developments.  Wave’s Q4 2008 net revenues rose 75% to $3,291,000, compared with Q4 2007 net revenues of $1,875,000, reflecting increased software royalties, as well as growth in software license upgrades.  For the full year 2008, net revenues grew 40% to $8,810,000, compared to 2007 net revenues of $6,307,000.

Reflecting continued increases in Wave’s software license activity, Q4 2008 billings, a non-GAAP measure of demand which reflects shipments and license upgrade contracts signed during the period but which may be recognized over future periods, rose 121% to $3,724,000 versus Q4 2007 billings of $1,686,000, and rose 62% versus Q3 2008 billings of $2,297,000.  For the full year 2008, billings grew 62% to $10,005,000, compared to 2007 billings of $6,192,000.

As disclosed in prior quarters, Wave’s software license upgrade sales are recorded as deferred revenue and recognized generally over a 365-day period.  As a result of this treatment and the additional growth in Wave’s license upgrades during Q4 2008 (net of revenue recognized), deferred revenue increased 41% or $433,000 to $1,484,000 at December 31, 2008, compared with the deferred revenue of $1,051,000 at September 30, 2008.  For the full year of 2008, deferred revenue grew over 400% to $1,484,000 from deferred revenue of $289,000 at December 31, 2007.

As a result of expense-reduction programs initiated during the quarter, Wave’s Q4 2008 operating expenses (including cost of sales) decreased to $6,560,000 versus Q4 2007 operating expenses of $7,230,000 and Q3 2008 operating expenses of $7,433,000.

For Q4 2008, Wave reported a net loss of $3,295, 000, compared with a Q4 2007 net loss of $5,288,000, and a Q3 2008 net loss of $5,605,000.  Wave’s Q4 2008 net loss attributable to common stockholders after accounting for the accretion of  a non-cash beneficial conversion feature on the Series J and Series K convertible preferred stock issuances during the quarter was $3,952,000, or $0.07 per basic and diluted share, compared with a Q4 2007 net loss attributable to common stockholders of $5,288,000, or $0.11 per basic and diluted share, and a Q3 2008 net loss attributable to common stockholders of $5,605,000, or $0.10 per basic and diluted share.  Per-share figures are