NW_20060125_en_VASCO Unveils New Product Strategy

January 25, 2006

NEW YORK, NY, Westin Hotel Times Square, January 25, 2006 – VASCO Data Security, Data Security International, Inc. (Nasdaq: VDSI) (www.vasco.com), the global number one vendor of strong user authentication products to the financial sector, today unveiled its new product strategy during a press and analyst event in New York. With the new strategy, companies will be able to use every authentication technology on one platform delivered by VASCO, thus making VASCO the Full Option, All Terrain Authentication Company.

Full Option stands for VASCO’s ability to support and deliver authentication technologies. In the short to mid-long term, VASCO will have product offerings for password technologies (Q&A sessions, TAN & Scratch lists, Matrix cards, etc.), one-time passwords (OTP - the Digipass product family) and Certificates/PKI (USB products, smart cards, etc.).
Depending market conditions, demand and the necessary development of technological infrastructure, VASCO will also be active in the biometrics sphere. VASCO’s R&D resources are fully focusing on all four above mentioned technologies.
Customers will be able to swiftly migrate from one VASCO authentication technology to another.

All-terrain stands for vertical applications/markets. Currently, VASCO’s products are being used in over 50 different applications, including e-banking, enterprise security, healthcare, online gaming, brokerage, automotive, e-government and many more. VASCO mostly designs new strong authentication products for the banking market, and brings in a later phase banking-level security to other vertical markets.

The core of VASCO’s authentication offerings is VACMAN Controller, the leading back-end authentication products in the financial sector and beyond. VACMAN Controller is the culmination of over 15 years of experience in strong authentication. The product supports over 15 different algorithms and all operating system. VACMAN Controller copes with unlimited amounts of users and is easy to implement and to maintain. In addition, VACMAN Controller is integrated in the products of over 100 solution partners and is the core of VASCO’s own Identikey™ Server.

VASCO’s Identikey™ Server is a multi-enterprise authentication server, enabling password technologies, OTP, certificates/PKI and biometrics. Identikey Server allows banks and other institutions to manage their own authentication projects, by using standard, ready-made VASCO modules (admin, database management, web applications, legacy, deployment and user management). It is possible for third-party vendors to add modules to the system. Identikey™ Server will act as the link between the different modules and as an easy path towards VACMAN Controller, the core of VASCO’s authentication technologies.

“Three years ago, VASCO became a market trendsetter by focusing strongly on strong user authentication. Hence, VASCO became The Authentication Company, selling more strong authentication products than any other company in the world,” stated Jan Valcke, VASCO’s President and COO. “In 2006, VASCO launches its next strategic move, combining all authentication platforms on one and unique platform. VASCO continues to take its responsibility towards the market, its current and future customers and stakeholders. As the Full Option, All-Terrain Authentication Company, VASCO believes to be ready for the many opportunities in the authentication sector.”


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 20 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]