NW_19991228_en_VASCO Creates Worldwide Divisions to Leverage Anticipated Explosive Growth in the E-Security Market

December 28, 1999

OAKBROOK TERRACE, ILLINOIS and BRUSSELS, BELGIUM – December 28, 1999 – VASCO Data Security International, Inc. (OTCBB: VDSI.OB), a leading multinational provider of Internet and enterprise-wide security solutions, today announced that it is structuring the company to prepare for anticipated rapid growth in the need for its security solutions in the Year 2000 and beyond. With a large and blue-chip international customer base as well as global distribution channels, VASCO expects to fully leverage the expected high demand for secure Single Sign-On, PKI, web security, strong user authentication, access control, and user administration security solutions after Y2K.

"Our customers and prospects are telling us that the first month of the year 2000 will be a ‘green light’ for building and enhancing their security infrastructures," noted Mario Houthooft, VASCO’s President and CEO. "Every company that takes its business to the Internet will need security, and we’re taking the steps necessary to have VASCO poised and ready for significant growth. We expect our speed-to-security and lower total cost of ownership advantages to create real differentiating value for our customers."

To ensure that it is prepared for accelerating demand, VASCO has formalized its organization along two worldwide divisional lines, known as IdentiSoft™ and IntelliSoft™. Each division has global responsibilities for the development, sales, and support of its product lines, utilizing an expanding set of global corporate resources and personnel for activities such as business development, marketing, and administration. The two divisions are also working closely together on joint sales and partnership opportunities. In addition, the company is optimizing the synergies created by its worldwide R&D centers – with engineers who hold deep and broad knowledge of security development, platforms, and integration – by coordinating divisional product development through a unifying technology and product vision.

VASCO’s new IdentiSoft division holds global responsibilities for the development, sales, and support of the company’s leading Digipass™ strong user authentication technology. With more than 130 banks and hundreds of corporations around the world as customers, IdentiSoft has become the security resource of choice for financial organizations seeking to protect access to information and transactions. Jan Valcke, formerly Sales Manager for VASCO Europe, has been named General Manager of the IdentiSoft division.

VASCO’s new IntelliSoft division, formed through the acquisition of IntelliSoft Corporation earlier this year, is moving to aggressively expand its resources, adding several experienced sales, marketing, and customer support personnel to the already established core of highly experienced software engineers. The division has global responsibilities for the development, sales, and support of VASCO’s SnareWorks™ and VACMAN® product lines. Jonathan Chinitz, General Manager of the IntelliSoft division, is overseeing the global expansion and development of IntelliSoft and its line of Single Sign-On, PKI, web security, access control, and user administration security solutions.

As Division General Managers, Jan Valcke and Jonathan Chinitz report directly to Mario Houthooft.

In a further step to help the company build shareholder value and prepare for rapid growth, VASCO has retained the services of two experienced investor relations firms. The London-based firm of Lommaert & Blondeel is leading investor relations activities in Europe, while investor relations in the Americas is being led by KCSA Public Relations Worldwide, based in New York City. In addition to their proven investor relations expertise, a critical factor in the selection of these firms was their extensive experience working together on joint worldwide accounts such as Lernout & Hauspie (Nasdaq: LHSP; Easdaq: LHSP), a key VASCO partner and investor.

"These steps create a VASCO that is more than prepared to leverage the dynamic and explosive security opportunities coming in the next millennium," said Mario Houthooft. "Our customers, prospects, partners, shareholders, and employees can expect the new VASCO to deliver even greater value to them, personally and professionally."

About VASCO Data Security

VASCO helps organizations rapidly and effectively secure their e-business and e-commerce applications and services. The company’s family of Digipass™, VACMAN®, and SnareWorks™ products offers end-to-end security through true Single Sign-On, PKI, web security, strong user authentication, access control, user administration and encryption solutions that also sharply reduce the time and effort required to deploy and manage them. With hundreds of financial institutions, blue-chip corporations, and government agencies as customers in more than 50 countries, VASCO Data Security is a global leader in security solutions that support the Internet economy. More information is available at www.vasco.com and www.isoft.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," or "expects" 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.

For more information please contact:

Media: Kerry Roche, Bridgeman Communications, +1 617 742 7270, [email protected]
Investor Relations: Todd Fromer, KCSA Public Relations Worldwide, +1 212 682 6300, [email protected]
VASCO: Mike Lange, +1 630 932 8844, [email protected]

Media (Benelux): Bob Pieters, Anthonissen & Associates, +32 3 286 7777, [email protected]
Media (Europe/Asia): Sven Kersten, HBI, +49 89 99 38 87 33, [email protected]
Investor Relations: Annemieke Blondeel, LBConsult, +44 208 308 7080, [email protected]
VASCO: Ariane Bosmans, +32 2 456 9810, [email protected]