NW_20010320_en_VASCO Expands Reach into AAA Server Market Through Global Alliance with Funk Software

March 20, 2001

OAKBROOK TERRACE, Ill. and BRUSSELS, Belgium -March 20, 2001 - VASCO (NASDAQ: VDSI; EASDAQ: VDSI; www.vasco.com ), a global provider of enterprise-wide security solutions that support e-business and e-commerce, today announced that it has partnered with Funk Software (www.funk.com ), the leader in the development of RADIUS/AAA (authentication, authorization, and administration) remote access servers. Funk Software and VASCO have integrated VASCO’s Digipass strong authentication technology into Funk Software’s Steel-Belted Radius RADIUS/AAA server, enabling interoperability with the entire Digipass family of products.

“By joining forces, Funk Software and VASCO can offer customers extremely secure remote access to the network, easily integrated into their existing
network infrastructures,” said Eugene Chang, Vice President of Strategic Business Development at Funk Software. “VASCO Digipass users can now securely connect - via any access method or platform - to e-commerce applications, be authenticated via Steel-Belted Radius and, if authorized, gain access to the network. This makes it incredibly easy for a network manager to add the enhanced security that Digipass offers, without having to reconfigure or build-out the existing infrastructure.”

Funk Software’s Steel-Belted Radius family of RADIUS/AAA solutions provide unparalleled capacity, reliability, and compatibility for thousands of organizations worldwide. With the native integration of Digipass authentication security into Steel-Belted Radius, Funk Software extends its commitment to ensuring compatibility with the widest variety of security and access methods in the market. With Digipass support built into the server itself, all organizations need is a Steel-Belted Radius server and Digipass
to gain the benefits of secure remote access to network e-commerce applications, at a low Total Cost of Ownership.

“Our partnership with Funk Software significantly expands our market reach in the US and around the world for Digipass strong authentication,” noted
Jan Valcke, Executive Vice President Sales and Marketing for VASCO. “We will work closely with Funk Software to further leverage our partnership and demonstrate to our customers and prospects that Funk Software’s world-class servers and Digipass strong authentication represent an ideal solution for strong and affordable remote access security.”

VASCO’s Digipass is a small, hand-held device based on two-factor authentication that provides anytime, anywhere, anyhow strong user authentication through patented dynamic password and digital signature technologies that help ensure positive identification of remote users and
the integrity of data and transactions. To obtain access and conduct business remotely, no matter the medium, users must have their PIN number,
their proper log-in name, and the Digipass itself - creating a high level of protection against unauthorized access. VASCO also offers Digipass software which offers all the security functionality of a hardware Digipass, with the
added flexibility of a software product.

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. More information is available at www.vasco.com .

About Funk Software
Based in Cambridge, Massachusetts, Funk Software is the developer of the award-winning Steel-Belted Radius family of RADIUS/AAA authentication
solutions. In use on thousands of enterprise and service provider networks worldwide, Steel-Belted Radius delivers a RADIUS/AAA solution on the scale
required by the largest wireless operators, carriers and service providers, and easily scales to meet the centralized authentication needs of the enterprise. Its customers include Northern Light, Allegiance Telecom, IKANO Communications, WebMD and Baylor University. Additional information can be found at www.funk.com .

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:

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): Nico Tempelaere
+32 2 361 31 20
[email protected]

Media (Europe/Asia): Sven Kersten
+49 89 99 38 87 33
[email protected]

Investor Relations: Annemieke Blondeel
+44 208 308 7080
[email protected]

VASCO: Ariane Bosmans
+32 2 456 9810
[email protected]