NW_20051122_en_VASCO Data Security selected as a Finalist for the Red Herring Small Cap 100

November 22, 2005

OAKBROOK TERRACE, Ill., and BRUSSELS, Belgium, November 22, 2005 – VASCO Data Security, Inc. (NASDAQ: VDSI) (www.vasco.com), the global number one vendor of strong user authentication products to the financial sector, today announced that it has been selected to the short-list of two hundred finalists for the inaugural Red Herring Small Cap 100. The editors of Red Herring magazine evaluated over 2,500 technology companies from North America, Europe, and Asia-Pacific for the award. The Small Cap 100 winners will be announced at Red Herring Fall 2005, December 13th-15th in San Francisco, CA.

"Small-cap technology companies are what most tech startups become after they go public," said Joel Dreyfuss, Editor-in-Chief of Red Herring magazine. “Red Herring's first list of small-cap companies allows us to track the evolution of these companies. We find that small-cap tech companies continue to be innovative even as they fulfill the demands of a competitive public market.”

“The fact that VASCO is part of the Red Herring Small Cap shortlist, means that important opinion leaders have discovered our unique business model that is driving our strong top-line revenue growth while delivering outstanding operating margins,” said Ken Hunt, Chairman and CEO of VASCO. “We thank Red Herring for their interest in VASCO. VASCO’s management team and employees are dedicated to make our company even more successful.”

The Red Herring Small Cap 100 finalists were selected for their innovative technology and smart business models that can take them to the next level of the competition. The full list can be viewed at http://herringevents.com.

"Small cap companies are the unsung heroes of the tech sector. The Red Herring Fall conference will welcome the most dynamic and versatile small cap companies in the industry today and give them the visibility they deserve," said Alex Vieux, Publisher and CEO of Red Herring.

The Red Herring Fall 2005 Conference is an invitation-only gathering for CEOs, select senior executives, and the investment and media communities. To request an invitation, contact Michael Felber at 650.428.2900 or [email protected].

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

About Red Herring Events
Red Herring events have long delivered clear and intelligent insight into the critical trends shaping the future of technology. We bring together industry leaders, venture capitalists, entrepreneurs, and our own business intelligence team to share ideas and present our research-based discoveries. Participants explore the strategic shifts and disruptive impact that new technologies will have in key US and international markets. Along the way, they will get a glimpse of the future. Additional information is available at http://www.redherring.com/events.

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]