NW_20031124_en_VASCO’s Digipass 800 Selected by MasterCard and Barclaycard (UK) to be Part of the First EMV-CAP Project in Europe

November 24, 2003

OAKBROOK TERRACE, Illinois and BRUSSELS, Belgium –November 24 – VASCO (Nasdaq: VDSI; www.vasco.com), a global provider of enterprise-wide security products that supports e-business and e-commerce, announced today that its Digipass 800 for EMV (Europay-Mastercard-Visa) will be used as strong authentication device for the first European CAP (chip authentication program) in the e-commerce space by Barclaycard (www.barclaycard.co.uk )and MasterCard (www.mastercard.com ). VASCO’s Digipass 800 is an official partner product in MasterCard’s EMV Program.

Barclaycard will offer its customers a service to perform secure online e-commerce transactions, while using the same pin and the same card as they use for their online banking transactions and money retrievals from an ATM (payments at POS terminals). An EMV smart card used in conjunction with VASCO’s Digipass 800 gives to the end user both convenience and confidence. The system is very easy to use and transforms the Internet into a secure channel for doing business. The bank/card issuer saves costs by the reduced number of Pin codes used by the end user (less code management/back office) and can cut marketing and operational costs.

“VASCO is honoured that its Digipass 800 unconnected smart card reader has been selected by Barclaycard and MasterCard to be part of the first CAP project in Europe,” said Jan Valcke, VASCO’s President and COO. “With approximately 250 banks in its customer base and over 10 million users, VASCO has built a great amount of expertise in offering strong user authentication to financial institutions and their accountholders. Digipass 800 has already proven to be a very successful and reliable product, being used by over 2 million cardholders word wide. Together with MasterCard, VASCO will offer a secure, cost effective and extremely easy to use credit card payment and Internet banking system to Barclaycard’s customers. For the first time ever, credit card users will be able to retrieve money from an ATM-terminal, to perform Internet banking transactions, to pay in a shop and to purchase goods over the telephone or the Internet with one single PIN code.”

“VASCO’s Digipass 800 is a proven, very easy to use strong authentication device, with important benefits for the bank, the card issuer and the card user,” said Mr Pascal Dufour, MasterCard’s Head of Chip Product Management. “Security, cost effectiveness, convenience and confidence are key success factors for the e-commerce sector. Together with VASCO and Barclaycard we will make this first European EMV/CAP project a success.”

About VASCO:
VASCO designs, develops, markets and supports patented "Identity Authentication" products for e-business and e-commerce. VASCO's Identity Authentication software is delivered via its Digipass security products, small "calculator" hardware devices carried by an end user, or in a software format on mobile phones, other portable devices, and PCs. For user access control, VASCO's VACMAN products guarantee that only designated Digipass users get access to the application. VASCO's target markets are the applications and their several hundred million users that utilize fixed passwords as security. VASCO's time-based system generates a "one-time" password that changes with every use, and is virtually impossible to hack, or break. With 10 million Digipass products sold and ordered, VASCO has established itself as a world-leader for strong Identity Authentication with 250 international financial institutions, approximately 1400 blue-chip corporations, and governments representing more than 60 countries.

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:
More information is available at www.vasco.com.
Media Contact: Jochem Binst: +32 2 456 9810, [email protected]
Investor Relations: Tony Schor, President, Investor Awareness, Inc.: 847-945-2222, [email protected]