NW_20050831_en_VASCO Receives MasterCard’s Chip Authentication Program Type Approval 2004 for its Digipass Secure Card Readers

August 31, 2005

OAKBROOK TERRACE, Ill., and BRUSSELS, Belgium, August 31, 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 its Digipass unconnected secure smart card readers have been the first authentication product worldwide to be EMV-CAP 2004 certified by MasterCard.

With the certification, VASCO’s products meet MasterCard’s most recent Chip Authentication Program requirements for highly secure card readers. Banks selecting VASCO’s readers can embark on the distribution of EMV-CAP smart cards, without worrying about reader-smart card – validation server compliance issues. MasterCard’s EMV based CAP (Chip Authentication Programme) program 2004 adds a number of important features to its predecessor, MasterCard’s EMV based CAP (Chip Authentication Programme) program including an extended digital signature functionality. VASCO has a proven range of unconnected secure smart card readers. In total, VASCO has sold over 6 million smart card readers worldwide, which makes the company the absolute market leader as a provider of secure smart card readers to the financial sector.

By using VASCO’s Digipass secure smart card readers in conjunction with an EMV smart card, end users can use the same EMV card and PIN, not only to get money out of an ATM or to pay for purchases in a shop, but also to do all kinds of online transactions such as internet shopping and internet or telephone banking in a secure way. The PIN code they use to get money out of an ATM or to pay bills in a shop can also be used to activate the Digipass card reader. That way, end users only need to remember one single PIN code to do both physical and online transactions while taking full advantage of EMV security.

“The MasterCard CAP program is of strategic importance for VASCO,” said Jan Valcke, VASCO’s President and COO. “We believe that we will land the first substantial MasterCard EMV-CAP orders this year. The fact that we are the first secure reader vendor to be EMV-CAP 2004 certified, adds a crucial competitive advantage to our offering.”

One of the great benefits of MasterCard’s Chip Authentication Programme to
banks is that it can be a natural extension to their work to implement
chips,” said Fikret Ates, MasterCard’s Vice President, Chip Product Management. “It enables them to leverage their existing or future EMV investments
to address the issue of payment security and convenience across different
services such as online banking and e-commerce. I am pleased to see VASCO
delivering this new product hence demonstrating its key expertise in the
area of Strong Authentication solutions.”



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 17 million Digipass products sold and delivered, VASCO has established itself as a world-leader for strong User Authentication with over 390 international financial institutions and approximately 1,700 blue-chip corporations and governments located in more than 90 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.

About MasterCard International
MasterCard International is a leading global payments solutions company that provides a broad variety of innovative services in support of our global members' credit, deposit access, electronic cash, business-to-business and related payment programs. MasterCard International manages a family of well-known, widely accepted payment cards brands including MasterCard®, Maestro® and Cirrus® and serves financial institutions, consumers and businesses in over 210 countries and territories. The MasterCard award-winning Priceless® advertising campaign is now seen in 96 countries and in 48 languages, giving the MasterCard brand a truly global reach and scope. For more information go to www.mastercardinternational.com or refer to our filings with the U.S. Securities and Exchange Commission.

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