NW_20001107_en_VASCO enters world's 3rd largest banking market

November 7, 2000

BRUSSELS, Belgium – November 7, 2000 – VASCO (NASDAQ & EASDAQ: VDSI), a global provider of enterprise-wide security solutions, today announced that Hamburgische Landesbank, the largest bank in Hamburg and one of the top 20 banks in Germany, has selected VASCO’s Digipass security technology to protect the online privacy and transactions of its customers. With over 2000 employees and assets exceeding 85 billion Euro, Hamburgische Landesbank turned to the world leader in authenticating financial transactions to provide strong yet easy to use security for its Internet banking initiative.

“The signing of Hamburgische Landesbank in Germany confirms VASCO’s market leadership in providing online security to the financial industry, and gives our company a strong entrance into the third largest banking market in the world,” noted Jan Valcke, Vice President and General Manager for VASCO. “We expect our business in Germany to accelerate as a result, building on the more than 150 banks, 500 companies, and millions of people worldwide now using Digipass strong authentication and digital signature technology to
secure access to banking applications and corporate networks.”

Hamburgische Landesbank is using VASCO’s hand-held, fully portable Digipass platform, which is slightly larger than a bank card and which operates on the same security principle. To access their accounts and conduct online transactions, customers must know their personal PIN and to also have in their possession their uniquely programmed Digipass. VASCO’s Digipass also provides random password capability for an additional strong barrier against unauthorized access. And because it requires no other software or hardware, Digipass allows the customers of Hamburgische Landesbank to conduct their online transactions “anywhere anyhow anytime,” with the assurances of top security.

The bank also benefited from VASCO’s partnership with Netlife AG of Hamburg, a leading provider of solutions for e-brokerage, Internet banking, e-payment and mobile commerce. Digipass is seamlessly integrated into the Netlife Internet banking solution implemented at Hamburgische Landesbank, and which incorporates advanced encryption for end-to-end security for the bank’s customers. As with Digipass technology, Netlife’s Internet banking solution does not require special software or hardware, allowing the bank’s customers to conduct their online banking from anywhere in the world.

“VASCO’s Digipass strong security is a key component of any online banking program, and we are pleased to be working with them on the project with Hamburgische Landesbank as well as other projects in Germany and around the world,” said Jochen Kuhlhoff of Netlife. “We see VASCO’s strong authentication and digital signature technology as a value-added proposition for banks, since it encourages their own customers to embrace online banking in increasing numbers.”

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® and SnareWorks™ products offers end-to-end security through strong authentication and digital signature, true Single Sign-On, access control and advanced entitlements, web portal security, 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 ABN AMRO Bank, Shell, 3M, Ericsson, Rabobank, SEB, First Union, Liberty Mutual, Cable and Wireless, Nokia, DaimlerChrysler, Volvo, US Department of Defense, European Commission, US Coast Guard, University of Groningen, and Duke University. VASCO’s partners include Check Point Software Technologies, Computer Associates, Intel, Netlife, Novell, Proton World, and Ubizen. More information is available at www.vasco.com.

About Hamburgische Landesbank
With a business volume of more than 85 billion Euro and over 2000 employees, Hamburgische Landesbank is the largest bank in Hamburg and ranks among the top 20 German banks. As a universal bank, Hamburgische Landesbank offers the entire range of modern banking services. Within its wide range of products, Hamburgische Landesbank possesses key expertise in real estate lending, ship financing, lending to industry and refinancing of leasing operations. Hamburgische Landesbank is renowned for its dealing in securities,
especially in issuing mortgage bonds and municipal bonds. In the relatively new market of asset investments, the bank ranks among Germany’s top market players.

About Netlife
Founded in 1996 and located in Hamburg, Germany, Netlife AG is a leading supplier of e-business solutions for e- banking, e-brokerage, mobile commerce and e-payment. With more than 220 employees in Central Europe and Asia, the company is also expanding rapidly at international level. Since June 1st 1999, Netlife AG has been quoted on the “Neuer Markt” (NTF) in Frankfurt. With Netlife solutions, financial service providers, near banks and service providers can combine traditional with modern sales channels, and offer their products & services via New Media (e.g., Internet). Netlife’s client portfolio includes Deutsche Postbank AG, Postbank easytrade, dvg Hannover, Haspa, TC TrustCenter, Bankgesellschaft Berlin, Drei-Banken-EDV GmbH, Hamburgische Landesbank, Citibank Singapore, Apple Computer Asia Pacific, Hongkong.com, Motorola-Direct Singapore, and National Computer Systems.

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]