NW_20051212_en_VASCO Data Security Recognized as a Red Herring Small Cap 100

December 12, 2005

OAKBROOK TERRACE, Ill., and BRUSSELS, Belgium, December 12, 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 been selected by Red Herring magazine as one of the inaugural Red Herring Small Cap 100. The editors of Red Herring evaluated over 2,500 technology companies from North America, Europe, and the Asia-Pacific region for the award.

The Red Herring Small Cap 100 were selected for their innovative technology and smart business models that nurture growth and profitability. Red Herring’s Innovation Index, global perspective, and provocative outlook on the technology landscape make this list a unique tool for technology and financial executives.

“The winners on this list are the most competitive, the most innovative, and the most promising technology companies in the small-cap segment. We hope that the Red Herring Small Cap 100 list will shine the light on them that they deserve," said Joel Dreyfuss, Editor-in-Chief of Red Herring magazine.

“VASCO has proven in 2005 to be the most successful and the fastest growing company in its sector,” said Ken Hunt, VASCO’s Chairman and CEO. “Our market plan and focus on strong authentication are working. It’s a pleasure to see that important opinion leaders like the editors of Red Herring recognize VASCO’s unique business model that is driving strong top-line revenue growth while delivering outstanding operating margins”

The award ceremony for the Small Cap 100 will be held during the Red Herring Fall 2005 conference, December 13th-15th in San Francisco, California. All award winners will be profiled in issue #47 of Red Herring magazine, on sale December 12th, which also contains Red Herring’s Top 10 Trends for 2006. The full list can also be viewed at http://www.herringevents.com.

About Red Herring Events
Red Herring events have long delivered clear and intelligent insight into the critical trends shaping the future of technology. We bring together industry leaders, venture capitalists, entrepreneurs, and our own business intelligence team to share ideas and present our research-based discoveries. Participants explore the strategic shifts and disruptive impact that new technologies will have in key U.S. and international markets. Along the way, they will get a glimpse of the future. Additional information is available at http://www.redherring.com/events.

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]