NW_20051208_en_VASCO Launches VACMAN Controller for Hardware Security Module (HSM)

December 8, 2005

VASCO Launches VACMAN Controller for Hardware Security Module (HSM)

New Product Adds Digipass Strong Authentication to Banks with Installed HSM; Extra Layer of Security at Server Side; Digipass Secrets Stored in Tamper-Proof Hardware Device

OAKBROOK TERRACE, Ill., and BRUSSELS, Belgium, December 8, 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 it has launched VACMAN Controller for Hardware Security Module (HSM). . Most medium-to-large banks in the world have an HSM installed for this added layer of security.

A Hardware Security Module is a tamper-proof hardware device that de-localizes storage and secrets management from the server to a highly secure environment.
VACMAN Controller processes can be executed on the HSM itself, ensuring the highest security level.

By adding VACMAN Controller to their HSM infrastructure, banks can kill two birds with one stone. They have a highly secure server environment and state of the art Digipass strong authentication to prevent uninvited outsiders to enter their networks.
The fact that VACMAN Controller for HSM uses an existing security environment, ensures an ultra-low Total Cost of Ownership (TCO).

VACMAN Controller will support the products of the world’s leading HSM manufacturers such as nCypher, Eracom and others, thus adding an additional security layer to VASCO’s strong authentication offerings. The security layers of VASCO’s Digipass strong user authentication also include One-Time Password technology, host authentication, challenge-response and digital signatures.

“VACMAN Controller for HSM is an important addition to our product offerings,” said Jan Valcke, VASCO’s President and COO. “Many of the world’s leading banks have HSM’s in place, and would like to take full advantage of the possibilities of these products. With VACMAN Controller for HSM, they can easily add an additional yet crucial layer of security to their infrastructure.”

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 18 million Digipass products sold and delivered, VASCO has established itself as a world-leader for strong User Authentication with over 420 international financial institutions and approximately 2,100 blue-chip corporations and governments located in more than 100 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]