June 29, 2004

OAKBROOK TERRACE, Ill., and BRUSSELS, Belgium, June 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 launched its Digipass Plug-in for RACF (Resource Access Control Facility). VASCO’s Digipass strong authentication products are natively integrated in RACF, IBM’s leading security product for Mainframe environments.

Digipass Plug-in for RACF is natively integrated into the system, needing no additional authentication server. This approach offers a low-cost and easy to administer solution not available through other competitors’ products. The Digipass secrets are stored in the RACF secure database. In addition, no client-side software or configurations are needed, which enhances the ease of deployment and the scalability, and lowers total cost of ownership (TCO) dramatically.

Digipass Plug-In for RACF can be used by virtually any company using mainframe systems, regardless of sector and market. VASCO considers the internal network security market and the financial sector as two main markets for this product.
VASCO will use its indirect sales channel to market Digipass Plug-In for RACF. Therefore, VASCO is building a worldwide net of mainframe integrators.

“With Digipass Plug-In for RACF we add an important product to our offerings,” said Jan Valcke, VASCO’s President and COO. “This product is aimed at large corporations that need thousands of Digipass products to securely authenticate their employees and/or customers.”

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]