NW_20060309_en_CeBIT 2006_ VASCO Launches Digipass for Web

March 9, 2006

CeBIT Trade Show, HANNOVER, GERMANY – March 9, 2006 - VASCO Data Security International, Inc. (Nasdaq: VDSI) ( www.vasco.com), the global number one vendor of strong user authentication products, today launched Digipass for Web at CeBIT 2006, the world’s largest ICT Tradeshow held in Hanover, Germany (Hall 17, booth # B12). Digipass for Web will be ready for deployment during Q 2 2006.

With Digipass for Web, VASCO tackles the green field market of Internet users that occasionally do small transactions online, buy goods such as books and concert tickets every now and then, read their online newspaper etc. This type of consumer needs an authentication that is more secure than static passwords, with a low TCO, a high ease of use and flexibility.

Digipass for Web is supported by VASCO’s VACMAN Controller, which creates the opportunity for companies to offer Digipass for Web to occasional users, and hardware Digipass to heavy and professional users, without migration issues.

With the addition of Digipass for Web to VASCO’s product offerings, companies can offer true “à la carte” authentication to their customers. Occasional users can be authenticated with Digipass for Web, whereas heavy users can have a hardware Digipass. With VACMAN Controller, VASCO’s strong authentication backbone, the migration between different client authentication products becomes a convenience, instead of a burden.

Digipass for Web can be used by any company offering goods and services online. The registration of the end-user is very easy and similar to the typical enrolment for static password systems. The customer will fill out a registration form, including his user ID, e-mail, PIN code, a secret question and a secret answer. During the e-mail activation, Digipass for Web will install a “cookie” with encryption secrets on the user’s PC. This will happen fully automatically. Once the activation link is sent back to the server, the end user will receive a Digipass for Web login applet, in which he has to type in his PIN code. In conjunction with the secrets stored in the “cookie” on the user’s PC, an initial One-Time Password will be sent to VACMAN Controller. From that moment on, the end-user’s Digipass for Web is fully operational, with One-Time Password and Digital Signature functionalities. The end-user can use Digipass for Web from any computer, by using his secret question and answer to easily re-register.
This feature dramatically enhances the portability of Digipass for Web.

Benefits of Digipass for Web are:
- Hassle-free strong authentication at both client and server side;
- No installation of software or hardware at the client side;
- PIN protected;
- No paperwork/handling/logistics;
- Swift and easy user self-service;
- Completely automated system;
- Smooth upgrade path to hardware Digipass;
- Portability;
- Extremely low TCO.

“With Digipass for Web, we prove our claim of being the Full-Option, All-Terrain Authentication Company,” said Jan Valcke, VASCO’s President and COO. “Digipass for Web is a solution for a market segment that was until now deprived of authentication methods stronger than a static password. VASCO wants to secure the entire online population with strong authentication products. Digipass for Web will authenticate the non-frequent user, for whom strong authentication was deemed out of reach due to economical reasons.

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 440 international financial institutions and over 2,300 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]