NW_20040303_en_VASCO and Netilla Announce Joint Product

March 3, 2004

March 03, 2004 – VASCO (Nasdaq: VDSI; www.vasco.com), a global provider of enterprise-wide security products that support e-business and e-commerce, and Netilla Networks (www.netilla.com ), a leading provider of SSL VPN and Secure Application Access Management solutions, today announced that their products will be marketed as a bundle by their common distributors. The companies will showcase the product bundling at CeBIT 2004, the world’s leading information technology fair in Hanover (Germany) from March 18-24 2004 (www.cebit.de) on VASCO’s booth in Hall 6 (Booth G 01).

The combination of VASCO’s and Netilla’s products offers an easy to install, flexible and cost effective product for secure remote access. The product bundling is especially suited for companies and institutions active in the healthcare, government and financial sectors and will be sold via distributors offering both product ranges. VASCO and Netilla are actively looking for new joint distributors in unexplored markets.

The Netilla Service Platform is an SSL (secure sockets layer) VPN appliance that enables highly secure, clientless remote access to virtually any application – whether Windows- UNIX-, Linux- or mainframe-based – using only a Web browser, at far less cost than previous VPN access solutions.

VASCO’s Digipass Pack is a bundling of VASCO’s Digipass and VACMAN Middleware strong user authentication products, especially designed for easy implementation in the leading security products of VASCO’s Solution Partners.

“We are happy to tighten our relationship with Netilla,’ said Jan Valcke, VASCO’s President and COO. “Our joint product offering provides high-quality, flexible and cost effective security for every security-aware company on this globe.”

“This Netilla/VASCO product bundle is a direct response to the market demand we are seeing for an access solution that is truly secure,” said Jan Vekemans, managing director of Netilla Networks Europe. “Bundling these two state-of-the-art solutions ensures that resellers will be able to meet the anticipated demand with a complete solution that can be deployed very rapidly.”

"The product bundling of Netilla's Service Platform VPN and VASCO's
Digipass Pack is a great opportunity for our resellers and end customers," said Ian Kilpatrick, Chairman of Wick Hill, VASCO's and Netilla's distributor in the UK and Germany (www.wickhill.com ). "The combination of two state of the art security products results in a very hard to beat offer in terms of quality, flexibility and price setting."

“Netilla’s Secure Socket Layer VPN’s have low threshold for usability and offer companies and end users a very easy to use access to applications, networks and data anywhere and anytime, using a standard Internet connection” said Servie Janssen, Manager Product Marketing at Q&I. (www.qi.nl ) “In order to secure the access, VASCO’s Digipass strong authentication is an absolute necessity. We at Q&I always market the Netilla and VASCO products as a bundle because they add a necessary security layer to each other.”

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.

About Netilla Networks
Netilla Networks, Inc. is the premier global provider of enterprise-class secure remote access and application access management solutions. The Netilla family of SSL VPN appliances gives organizations the power to make their mission-critical applications and resources instantly available to employees and trusted partners anywhere via standard Web browsers, while safeguarding internal networks. Netilla’s dynaTRUST policy-enforcement operating system provisions dynamic trust-based access to network resources on the basis of four key variables: a user’s identity, entitlements, environment and client integrity. Compared to traditional VPN technologies, the Netilla Security Platform is a versatile, simple and quick-to-deploy solution that lowers the total cost of remote access security management. Netilla’s products are available through a worldwide network of value-added resellers. Netilla can be reached at www.netilla.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 contact:
Vasco Media Contact:
Jochem Binst, +32 2 456 9810, [email protected]

Netilla Media Contact:
Yvonne Eskenzi +44 20 8449 8292, [email protected]