NW_20031203_VASCO Data Security International, Inc. and ActivCard, S.A. Reach Settlement Agreement

December 3, 2003

VASCO Data Security International, Inc.
(Nasdaq: VDSI - News; www.vasco.com ), a global provider of security products that
enable e-business and e-commerce, today announced that the company has settled
its lawsuit with ActivCard, S.A. relating to VASCO's Digipass authentication
products. ActivCard had asserted that VASCO infringed two ActivCard patents,
and that the design of VASCO's Digipass products violated ActivCard's trade
dress, in a federal lawsuit in Delaware. The agreement dismisses the lawsuit,
grants VASCO a worldwide license under the patents and avoids further disputes
between the parties as to the current VASCO product line.
"These agreements will enable us to focus on serving our customers rather than spending our energy on lengthy legal disputes. We look forward to a more positive business environment by which both parties can accelerate the development of their authentication systems," said Ken Hunt, VASCO's Chairman & CEO.

Additional details of the agreement were not disclosed.

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.

More information is available at www.vasco.com .

For more information contact:
Media: Jochem Binst: +32 2 456 9810, [email protected]

Investor Relations: Tony Schor, President, Investor Awareness, Inc.:847-945-2222, [email protected]