September 29, 2004

OAKBROOK TERRACE, Ill., and BRUSSELS, Belgium, September 29, 2003 - VASCO Data Security International, Inc. (Nasdaq: VDSI) ( www.vasco.com), a global provider of security products that enable e-business and e-commerce, and Network Engines, Inc. (Nasdaq: NENG), a leading development, manufacturing and distribution partner for storage and security software vendors and equipment providers, today announced a partnership to provide two-factor authentication solutions that support the Version 2.0 release of the Network Engines’ Steel-Belted Radius Enterprise Edition Appliance. TidalWire, Network Engines’ distribution arm, will globally distribute the full line of VASCO Digipass strong user authentication products.

“The availability of VASCO’s Digipass two-factor authentication solutions, in conjunction with the Steel-Belted Radius Appliance, enables customers to secure wireless local area networks and provide remote authentication without additional software and servers,” states Mike Riley, vice president of marketing and strategy for Network Engines. “As a result, the ROI for end-users is realized immediately.“

“In partnering with Network Engines, customers now have global access to our leading Digipass products, backed by expert distribution and support capabilities. This is the first step in establishing a long term partnership with Network Engines,” says Jan Valcke, VASCO’s President and COO. “The Digipass tokens are an excellent add-on product for the Steel-Belted Radius Appliance for users that want an added level of security without the burden, complexity and extra cost of adding a third-party token server.”

Network Engines’ Steel-Belted Radius Enterprise Edition Appliance Release 2.0 is available today. It has built-in support for all VASCO Digipass tokens and ships with 2 free Digipass GO 1 tokens to provide users with a glimpse of how easy it is to add strong two-factor authentication to their network. The VASCO Digipass tokens are available through TidalWire, Network Engines’ distribution arm.

About VASCO: VASCO designs, develops, markets and supports patented strong user authentication products for e-business and e-commerce. VASCO’s strong user authentication software is delivered via its Digipass security products, small “calculator” hardware devices carried by an end user, or in a software format on mobile phones, other portable devices, and PCs. For user access control, VASCO’s VACMAN products guarantee that only designated Digipass users get access to the application. VASCO’s target markets are the applications and their several hundred million users that utilize fixed passwords as security. VASCO’s time-based system generates a “one-time” password that changes with every use, and is virtually impossible to hack, or break. With 10 million Digipass products sold and ordered, VASCO has established itself as a world-leader for strong user authentication with over 220 international financial institutions, approximately 1200 blue-chip corporations, and governments representing more than 60 countries.

About Network Engines
Network Engines (NASDAQ: NENG) is a leading development, manufacturing and distribution partner for storage and security software vendors and equipment providers worldwide. The company works with software partners to develop, manufacture, and distribute server appliances for mission-critical storage and security networking applications. TidalWire, Network Engines' distribution operations, offers a full complement of appliances, related products and components to over 500 value-added resellers and systems integrators who provide storage and security networking solutions to the enterprise. Headquartered in Canton, Massachusetts, Network Engines was founded in 1997. For additional information on the Company's products and services visit www.networkengines.com.

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.

More information is available at www.vasco.com.

For more information contact:
Media: Jochem Binst: +32 2 456 9810, [email protected]
Investor Relations: Tony Schor, President, Investor Awareness, Inc.: 847-945-2222, [email protected]