NW_20040818_en

OAKBROOK TERRACE, Ill., and BRUSSELS, Belgium, August 17, 2004 - VASCO Data Security International, Inc. (Nasdaq: VDSI) (www.vasco.com), the global number one vendor of strong user authentication products to the financial sector, today launched Digipass Host Authentication. Digipass Host Authentication tackles the currently omnipresent “phishing” fraud schemes, by allowing an end-user to check whether a bank’s or a merchant’s website is genuine.
The entire Digipass product range is available with the Digipass Host Authentication functionality, including Digipass GO3, VASCO’s easy to use and low-cost one-button token.

A fraudster who goes phishing, wants to get possession of the end user’s static secret information. To obtain this information, he sends a mail broadcast from a fake server address to multitude e-mail addresses. After the unsuspecting victim enters his secret information (credit card info, PIN code, user name,…) on the ‘fake’ website, the gathered data can be processed in batch by the criminal whenever he feels like it. Digipass Host Authentication adds an extra dimension to VASCO’s anti-phishing product offerings, by giving the end-user the possibility to verify whether the web site he is visiting, is not a decoy.

When visiting a web site, a Digipass user can send a 7 or 8 digit, time based one-time password to the host server. The host server will respond with a time based 4-digit host authentication code. When the 4-digit code matches with the 4-digit code generated by the Digipass, the end-user knows that he is visiting a valid web site.

“With Digipass Host Authentication, VASCO launches an extremely easy to use, yet powerful weapon in the battle against phishing, on top of the one-time password and digital signature functionalities already embedded in our Digipass product range,” said Jan Valcke, VASCO’s President and COO. “We believe that this product will prove to be very successful in the large volume retail banking market, protecting bank account holders’ assets and making the Internet a truly secure channel.”



About VASCO: VASCO designs, develops, markets and supports patented “Identity Authentication” products for e-business and e-commerce. VASCO’s Identity Authentication software is delivered via its Digipass hardware and software security products. For user access control, VASCO’s VACMAN products guarantee that only designated Digipass users get access to the application. With over 11 million Digipass products sold and ordered, VASCO has established itself as a world-leader for strong Identity Authentication with 300 international financial institutions and approximately 1,400 blue-chip corporations and governments located in more than 70 countries.
Forward Looking Statements
Statements made in this news release that relate to future plans, events or performances are forward-looking statements. Any statement containing words such as “believes,” “anticipates,” “plans,” “expects,” and similar words, is forward-looking, and these statements involve risks and uncertainties and are based on current expectations. Consequently, actual results could differ materially from the expectations expressed in these forward-looking statements.

Reference is made to the Company's public filings with the US Securities and Exchange Commission for further information regarding the Company and its operations.

For more information contact:
Jochem Binst, +32 2 456 9810, [email protected]