October 21, 2004

OAKBROOK TERRACE, Ill., and BRUSSELS, Belgium, October 21, 2004 - VASCO Data Security International, Inc. (NASDAQ: VDSI), (www.vasco.com), the global number one vendor of strong user authentication products to the financial sector, today announced that Leading Swedish Bank FöreningsSparbanken (www.swedbank.se ) has placed an order of over 400 000 units of VASCO’s Digipass 260 in order to offer its retail customers secure Internet and Phone Banking.

FöreningsSparbanken is one of the largest banking groups in the Nordic area. At the end of 2003, the group had approximately 15,400 employees, of which 9,500 are located in Sweden. The group has about 4.3 million private customers in Sweden and 4 million in the Baltic States. Today, FöreningsSparbanken is Sweden’s largest Internet bank, with approximately 1.6 million customers, and Sweden’s largest telephone banking application, with over 2 million end-users. Recently, FöreningsSparbanken has started an application for physically disabled and visually challenged customers, including VASCO’s Digipass 300 Comfort.

“We are glad that a leading bank like FöreningsSparbanken has chosen Digipass,” said Jan Valcke, VASCO’s President and COO. “Worldwide, more and more banks are protecting their customer’s assets with VASCO’s Digipass strong authentication products, for over 20 different customer applications. We salute FöreningsSparbanken’s decision to offer Digipass to its retail customers. Recent fraud attempts have abundantly proven that the use of static passwords is unsafe in an Internet banking environment”.

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 hardware and software security products. For user access control, VASCO’s VACMAN products guarantee that only designated Digipass users get access to the application. With over 12 million Digipass products sold and shipped, VASCO has established itself as a world-leader for strong Identity Authentication with more than 300 international financial institutions and over 1,400 blue-chip corporations and governments located in more than 80 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.

Jochem Binst
Phone: +32 245 69 810
[email protected]