NW_20050616_en_HSBC in Hong Kong Uses Digipass GO3 for Retail Internet Banking

June 16, 2005

OAKBROOK TERRACE, Ill., and BRUSSELS, Belgium, June, 2005 - 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 announced that HSBC in Hong Kong (www.hsbc.com.hk) will provide all its [email protected] customers additional security for Internet banking through VASCO’s Digipass GO3. HSBC in Hong Kong is the first bank in the Greater China area to offer Digipass to all its retail Internet customers.

With over 870,000 Internet banking customers, HSBC is the largest Internet bank in Hong Kong, serving over 60% of the online banking users in the territory. By taking advantage of the user-friendly features of the GO3 for Internet banking security, HSBC in Hong Kong is looking to provide enhanced security and convenience to its customer base as a top priority. HSBC also has plans to roll out VASCO’s Digipass to all [email protected] customers in Asia.

“We are honoured to welcome HSBC in Hong Kong as a VASCO customer,” said Jan Valcke, VASCO’s President and COO. “VASCO’s Digipass GO3 is an extremely portable and easy to use two factor authentication device that provides users with a secure One-Time Password (OTP) which cannot be re-used by hackers. We acknowledge HSBC in Hong Kong’s groundbreaking decision to lead the battle for secure online banking in Asia-Pacific. VASCO will spare no effort to make this project a success.”

About VASCO: VASCO designs, develops, markets and supports patented user authentication products for the financial world, remote access, e-business and e-commerce. VASCO’s user authentication software is delivered via its Digipass hardware and software security products. With over 15 million Digipass products sold and delivered, VASCO has established itself as a world-leader for strong User Authentication with over 370 international financial institutions and approximately 1,700 blue-chip corporations and governments located in more than 80 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]