April 29, 2004

OAKBROOK TERRACE, Ill., and BRUSSELS, Belgium, April 29, 2004 - VASCO Data Security International, Inc. (Nasdaq: VDSI) ( www.vasco.com), a global provider of security products that enable e-business and e-commerce, today announced VACMAN Middleware 2.2, the newest version of its strong authentication server. VACMAN Middleware 2.2 will be available in Q2 2004.

VACMAN Middleware 2.2 boasts an important number of new features, including:
1. Windows Server 2003 Support, including Active Directory. Installing a Digipass pack for Microsoft Outlook Web Access and Citrix Web interface will be quicker than ever before. The fact that the crucial Digipass data can now be stored on the Windows Server 2003, eliminates the user’s need for additional storage areas. In addition, the administrator will be able to view and manage the crucial Digipass data in one screen.
2. VACMAN Middleware 2.2 makes Digipass pack available for Citrix Metaframe XP.
3. User Self-Management Website: In order to enhance user friendliness, Digipass end users will be able to manage their own VACMAN Middleware user account and change their GO1/GO3 PIN.

VACMAN Middleware is the backbone of Digipass Pack, VASCO’s off the shelf product aimed at the Corporate Network Access (C.N.A.) market. Digipass Pack consists of a VACMAN Middleware software license, a number of Digipass strong authentication tokens and a maintenance contract. Digipass Pack is especially designed for SME’s (small and medium enterprises) wanting an easy to install strong authentication plug-in for infrastructures and solutions by VASCO’s solution partners, such as Novell, CITRIX, Watchguard, etc.

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 over 11 million Digipass products sold and ordered, VASCO has established itself as a world-leader for strong Identity Authentication with 280 international financial institutions, approximately 1500 blue-chip corporations, and governments in 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:
Jochem Binst, +32 2 456 9810, [email protected]