VASCO’s DIGIPASS Technology to be embedded into Intel® Identity Protection Technology (IPT)

February 9, 2011

Solution enables easy deployment of two-factor authentication without the need to roll-out additional hardware or software

Oakbrook Terrace, Illinois, Zurich, Switzerland, February 09, 2011 - VASCO Data Security Inc. (Nasdaq: VDSI; www.vasco.com ), a leading software security company specializing in authentication products, today announced that VASCO’s DIGIPASS authentication technology can now utilize the embedded token of Intel® Identity Protection Technology (Intel® IPT). This will allow customers to easily deploy two-factor authentication without the need to roll-out software or hardware devices to end-users. This collaboration results in the availability of market-leading authentication available on select 2nd Generation Intel® Core™ processor-based PCs.¹

VASCO’s DIGIPASS offering for Intel IPT replaces the use of static passwords by dynamic one-time passwords (OTP). The dynamic password is user specific and only valid for a limited period of time. Authentication technology protects against online transaction fraud, data and identity theft.

The 2nd Generation Intel Core processor platforms will support a VASCO applet. When an end-user wants to log-on securely to a website using DIGIPASS, the applet on the chip will send the OTP for validation. The server will request validation from VASCO’s back-end authentication software, which will send the response to the server of the application service provider, who will grant access to the end-user. The Intel IPT technology works seamlessly with VASCO’s range of authentication server software, VACMAN and IDENTIKEY, as well as with DIGIPASS as a Service, VASCO’s cloud-based authentication platform.

DIGIPASS for Intel® IPT allows customers to deploy two-factor (OTP) authentication without the need to roll-out authentication hardware or software to the end-user. Two-factor authentication is present on laptops or PCs based on the 2nd Generation Intel Core processor platforms. End-users only need to activate the authentication capability online.

DIGIPASS® for Intel IPT is suited for use by online application providers wanting to add a second authentication layer to the DIGIPASS hardware based authentication they already use by binding a specific user to a specific PC. Its use is manifold: It can be used by insurance and healthcare agencies to protect client or patient confidentiality, by corporations to protect e-mail and network traffic, or help providers of online subscription-based service to preserve their revenue stream.

“We are convinced that the option of embedding authentication technology on the majority of the world’s desktop and laptop computers will open new market opportunities for authentication. The authentication technology on Intel IPT is the enabler for multi-application authentication,” says Jan Valcke, President and COO at VASCO Data Security.

”The integration of DIGIPASS authentication capability with Intel IPT is the result of intensive teamwork between both our engineering departments,” said George Thangadurai, general manager of PC client services at Intel. “With online fraud, credential and data theft continuously on the rise, the need for more secure log-on procedures and e-signatures is only growing, especially in the online consumer sector. We are convinced this approach makes authentication easier and more straightforward for end users.”

¹No system can provide absolute security under all conditions. Requires an Intel IPT-enabled system, including a 2nd Generation Core processor enabled chipset, firmware, and software. Available only on participating websites. Consult your system manufacturer. Intel assumes no liability for lost or stolen data and/or systems or any resulting damages. For more information, visit : http://www.intel.com/technology/identityprotectiontechnology/index.htm

VASCO is a leading supplier of strong authentication and e-signature solutions and services specializing in Internet security applications and transactions. VASCO has positioned itself as a global software company for Internet security serving a customer base of over 10,000 companies in more than 100 countries, including more than 1,500 international financial institutions. VASCO’s prime markets are the financial sector, enterprise security, e-commerce and e-government.

Forward Looking Statements:
Statements made in this news release that relate to future plans, events or performances are forward-looking statements. These forward-looking statements (1) are identified by use of terms and phrases such as “expect”, “believe”, “will”, “anticipate”, “emerging”, “intend”, “plan”, “could”, “may”, “estimate”, “should”, “objective” and “goal”, “possible”, “potential”, and similar words and expressions, but such words and phrases are not the exclusive means of identifying them, and (2) are subject to risks and uncertainties and represent our present expectations or beliefs concerning future events. VASCO cautions that the forward-looking statements are qualified by important factors that could cause actual results to differ materially from those in the forward-looking statements. These risks, uncertainties and other factors have been described in greater detail in the Annual Report on Form 10-K for the fiscal year ended December 31, 2009 filed with the Securities and Exchange Commission and include, but are not limited to, (a) risks of general market conditions, including currency fluctuations and the uncertainties in world economic and financial markets, (b) risks inherent to the computer and network security industry, including rapidly changing technology, evolving industry standards, increasing numbers of patent infringement claims, changes in customer requirements, price competitive bidding, and changing government regulations, and (c) risks specific to VASCO, including, demand for our products and services, competition from more established firms and others, pressures on price levels and our historical dependence on relatively few products, certain suppliers and certain key customers. Reference is made to VASCO's public filings with the U.S. Securities and Exchange Commission for further information regarding VASCO and its operations.
This document may contain trademarks of VASCO Data Security International, Inc. and its subsidiaries, including VASCO, the VASCO “V” design, DIGIPASS, VACMAN, aXsGUARD and IDENTIKEY.

For more information contact: Jochem Binst, +32 2 609 97 00, [email protected]

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