June 8, 2004

OAKBROOK TERRACE, Ill., and BRUSSELS, Belgium, June 08, 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 that it has launched Digipass 850 Integration Toolkit. The Digipass 850 Integration Toolkit enhances the ease and speed of integration of the products within any smart card based PKI environment, regardless of the type of smart card used.

The unique functionalities of Digipass 850 make it possible to use the device in connected and unconnected mode. Connected with a USB cable to a PC, Digipass 850 is the ultimate PKI (Public Key Infrastructure) enabling strong authentication product. Unconnected, the Digipass 850 smart card reader has all the features of VASCO’s renowned and successful Digipass 800, which has already been used for several high volume e-commerce and e-banking applications.

The main security weakness in a PKI system lays in the fact that the access to the security certificate (a user’s security “passport”) is secured with a static PIN code. This opens opportunities for fraudsters who, using Trojan horse and key logging codes to capture the end user’s PIN code, get access to bank accounts and other sensitive information. With Digipass 850, this threat is history. The static PIN is introduced into the Digipass 850 secure card reader separately and cannot be traced or captured by a hacker.

VASCO's Digipass 850 will be showcased with the new Belgian e-ID card on Thursday June 10, at L-SEC's Electronic Identity Card & Digital Signatures
Conference in Leuven, Belgium. On that event every attendee will receive his personal Digipass 850 useable in test or real-life environments. VASCO works closely together with L-SEC, an independent not-for-profit network organization that unites all the participants in the Belgian e-security value chain.

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]