NW_20000926_en_VASCO and partner Integic win $7.3 Million Contract

September 26, 2000

ALEXANDRIA, Va., E-GOV INFORMATION ASSURANCE CONFERENCE – September 26, 2000 – VASCO (NASDAQ & EASDAQ: VDSI; www.vasco.com), a global provider of enterprise-wide security solutions, announced today that it has been awarded an enterprise software license to provide the security infrastructure for the US Department of Defense’s Composite Health Care System II (CHCS II) of the Military Health System (MHS). The value of the license and maintenance to VASCO is $7.3 million over six years. At full deployment, CHCS II will revolutionize the Military Health System by allowing a physician, nurse practitioner or any other provider to get a patient’s complete medical information right at the point of service, facilitating the delivery of care to millions of active duty personnel, retirees and beneficiaries anywhere in the world. The contract was awarded through Integic (www.integic.com), a leading provider of integrated e-business solutions to government and commercial customers.

“We’re pleased to have been selected to provide the security infrastructure for this critical government initiative that will significantly enhance healthcare services for millions of Americans in the service of their country and their families,” said Jonathan Chinitz, Vice President and General Manager of VASCO. “Both Integic and the US Department of Defense quickly recognized the unique capabilities of SnareWorks to provide an effective and scalable security ‘glue’ that can easily encompass the more than 60 different clinical information systems that will comprise the new system, without having to reengineer existing or new applications.”

VASCO’s SnareWorks software will provide Composite Health Care System II with multiple security capabilities to ensure the protection of patient records and the privacy of patients, in compliance with the Health Insurance Portability and Accountability Act of 1996 (HIPAA) and the Privacy Act of 1974. CHCS II will network Military Treatment Facilities and Clinics from the Air Force, Army, and Navy. As an information system, CHCS II has already received accreditation at a C2 level of trust for three years – with an extremely low risk score – from the Military Health System.

In creating the secure infrastructure for CHCS II, Integic will integrate SnareWorks into the Department of Defense’s Public Key Infrastructure (PKI) to provide seamless enterprise-wide security in the form of:

Role-based access control that will allow the Department of Defense to set up and enforce security policies based on SnareWork’s ability to provide granular authorization and advanced entitlements.

True, secure enterprise-wide Single Sign-on (SSO) that will also increase system-wide productivity and efficiency.

Digital signature capability to verify that data has not been altered and to link patient records to anyone accessing or modifying them, providing a critical component of a system-wide audit trail.

Enterprise-wide unbreakable encryption for all data transfers, as well as unbreakable encryption of all data residing on every database for maximum security.

“We view VASCO’s SnareWorks software as a critical and enabling component of our work with the US Department of Defense,” noted Larry Albert, Senior Vice President at Integic. “We’re already looking at our other government and commercial customers where the software appears to be an ideal fit. At the same time, since our security consultants are proficient with SnareWorks, Integic can now provide VASCO with expert security integration services to help accelerate the implementation of SnareWorks.”

VASCO secures the enterprise from the mainframe to the Internet with infrastructure solutions that enable secure e-business and e-commerce, protect sensitive information, and safeguard the identity of users. The company’s family of Digipass™, VACMAN®, and SnareWorks™ products offers end-to-end security through true Single Sign-On, access control and advanced entitlements, web portal security, strong user authentication, and PKI enablement, while sharply reducing the time and effort required to deploy and manage security. VASCO’s customers include hundreds of financial institutions, blue-chip corporations, and government agencies in more than 50 countries, among them John Hancock, ABN AMRO Bank, Shell, 3M, Ericsson, Rabobank, SEB, First Union, Liberty Mutual, Cable and Wireless, Nokia, DaimlerChrysler, Volvo, European Commission, US Coast Guard, University of Groningen, and Duke University. VASCO’s partners include Ubizen, Intel, Computer Associates, Lernout & Hauspie, Check Point Software Technologies, and Novell. More information is available at www.vasco.com.

About Integic
Integic delivers vertically focused inter-enterprise applications and business-to-business integration solutions that enable e-commerce and e-communities and transform a client's business and technology strategies. With more than a decade of experience, Integic prepares its clients to take immediate advantage of the Web, streamlining operations and increasing ROI while leveraging new market opportunities. With a stable and growing client-base in targeted industries, Integic leverages its subject matter expertise and market leading partners to deliver end-to-end solutions. Clients include Sony Music, Composite Healthcare Systems, Dominion Resources, Schering, Xerox and many more. For more information, visit www.integic.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.

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]