NW_20051115_en_VASCO Launches Hyper-Portable Digipass 100, Digipass Strong User Authentication on Flexible Smart Card

November 15, 2005

OAKBROOK TERRACE, Ill., and BRUSSELS, Belgium, November 15, 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 Digipass 100, Digipass Technology on a flexible smart card. Digipass 100 has been based on the nC DisplayCard recently announced by nCryptone (www.ncryptone.com ) and InCard (www.incardtech.com) with VASCO Digipass algorithm inside. With Digipass 100, VASCO adds another important asset to its full-option authentication family of Digipass products, specifically for the banking and e-commerce market.

The Digipass strong authentication technology sits on a flexible smart card developed by nCryptone and InCard. This card displays a Digipass one-time password when the user pushes a button.
The Digipass 100 flexible smart card has the same format as a classic credit card and fits perfectly in a wallet, which makes it hyper-portable.

“We are glad to enter a strong partnership with VASCO,” said Cyril Lalo, Chairman and CEO of nCryptone. “By jointly developing Digipass 100, we combine nCryptone’s know how with regards to smart card development with VASCO’s global reach as market leader in the financial sector and its proven Digipass technology. We are convinced that our cooperation will be fruitful.”

“With Digipass 100, we prove our claim that VASCO will be the trend setter in the strong authentication world,” said Jan Valcke, VASCO’s President and COO. “We have 420 banks in our customer portfolio, which makes us the absolute number one provider of strong authentication products to the financial sector. To strengthen our leadership position, and to grow in other vertical markets, we want to diversify our range of Digipass authentication products. The launch of Digipass 100 fits perfectly in this strategy.”

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 18 million Digipass products sold and delivered, VASCO has established itself as a world-leader for strong Identity Authentication with over 420 international financial institutions and approximately 2,000 blue-chip corporations and governments located in more than 100 countries.

About nCryptone (ex AudioSmartCard): A subsidiary of the Prosodie Group (Reuters PSOE.PA), nCryptone establishes itself as a major actor of strong authentication solutions, with an offer that covers the whole value chain. Thanks to its recognized expertise in embedding energy sources in ISO banking format cards, developped since 1993, nCryptone solutions represent a unique answer on the market for multi channel authentication needs: nC AudioCard, a card that delivers a dynamic password as acoustic signals ; nC DisplayCard, also in credit card format, which displays on a flexible screen a dynamic password made up of 6 or 8 digits. And nC Server, a software suite of strong authentication management and access rights, open to the management of the main existing tokens, nC Server is marketed under various forms (license, ASP, appliance).

nCryptone is Member of OATH Consortium and SmartCard Alliance.

More informations : www.ncryptone.com

About Innovative Card Technologies (InCard)
Innovative Card Technologies, Inc. (InCard) is a leader in payment card enhancements. InCard issued its first product, the LensCard (a credit card with a built-in magnifying lens) in 1998. InCard has developed “Power Inlay Technology” which integrates a battery, circuit, switch and output device into a payment card. The possibility of putting in a function – driven by power – into an ISO compliant payment card is the concept behind InCard’s Power Inlay Technology. InCard’s portfolio of products offer both a branding tool to differentiate bank products as well as being practical for the consumer. InCard’s current focus is on security enhancements. InCard with nCryptone, has developed a payment card with an embedded display that generates a dynamic One-time Password. InCard offers Visa Member Banks an opportunity to be a leader and innovator in the payment card market.

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]