NW_20050520_en_VASCO Receives 2005 Award for Frost & Sullivan Vertical Market Penetration Leadership

May 20, 2005

OAKBROOK TERRACE, Ill., and BRUSSELS, Belgium, May 19, 2005 - 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 business analyst firm Frost & Sullivan has recognized VASCO with the Excellence Award for Vertical Market Penetration Leadership in the financial vertical of the Authentication market.

“As consumer identity emerges as a key application driving the Hardware Authentication Devices market, VASCO with its wide experience and impressive set of references in the European banking market is expected to repeat its success in the emerging consumer identity market in North America,” said Zubin Baben, Analyst with Frost & Sullivan.

“This Award proves that our market strategy is working,” said Jan Valcke, VASCO’s President and COO. “Worldwide, financial institutions put their trust in VASCO’s Digipass Suite of products in order to protect their customers against fraud schemes like phishing and man-in-the-middle attacks. By rolling out Digipass to their end users, banks are protecting the future of the Internet as a trusted business channel.”

“VASCO is actively pursuing the top 50 banks in the US,” Zubin Baben continues. “The company already has customers in the US banking sector, like Wachovia, Sovereign Bank, ABN-Amro, State Street Bank, Dollar Bank and Banco Popular, who have begun to deploy VASCO solutions for their commercial banking customers. As is the normal practice in this vertical, banks initially pilot strong authentication solutions beginning with a limited number of commercial banking customers, before they go in for large scale retail deployments.”

About VASCO: VASCO designs, develops, markets and supports patented user authentication products for the financial world, remote access, e-business and e-commerce. VASCO’s user authentication software is delivered via its Digipass hardware and software security products. With over 15 million Digipass products sold and delivered, VASCO has established itself as a world-leader for strong User Authentication with over 370 international financial institutions and approximately 1,700 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.

For more information contact:
Jochem Binst, +32 2 456 9810, [email protected]