NW_20070131_VASCO Unveils Business Strategy 2007

January 31, 2007

New York, NY, Hilton Hotel Times Square, January 31, 2007 – VASCO Data Security, Inc. (Nasdaq: VDSI) (www.vasco.com) , the world’s number one provider of strong authentication and e-signature products and services, today unveiled its business strategy during an investor and media event in New York. Building on the existing Full Option, All-Terrain strategy, VASCO positions its market leading Digipass and VACMAN strong authentication products as the central point of its DigipassPlus product and service offering. VASCO also stated that it has dramatically strengthened its back-end server authentication product suite.

With DigipassPlus, the renowned VACMAN and Digipass authentication product lines are positioned as the central point in a customer’s network and applications. Around it, related products, technologies and services, are orbiting.
VASCO’s current offerings include DigipassPlus products and services such as:
- Digipass, an authentication security software available on 50 different platforms;
- VACMAN Controller and VACMAN Middleware, a software set combining various authentication techniques and technologies on one unique platform;
- aXsGuard Unified Threat Management, bi-directional software & services to control a computer platform and the connection between the server and the outside world;
- Fraud Detection & Analysis.

For the further development of its product range, VASCO uses a “make or buy” strategy, implemented in 2005. This means that the company investigates whether it will develop new products in-house or that it will acquire companies that specialize in such products and services.

VASCO has dramatically reinforced its server platform. In the first place, the company offers products that protect the connection between the server platform and the outside world thanks to its aXs Guard product suite. Secondly, VASCO has embedded its software client authentication products Digipass for Web and Virtual Digipass into its VACMAN Controller server side authentication products. This means that institutions that have installed VACMAN Controller, can immediately protect its customers’ assets against phishing, pharming, man-in-the-middle attacks and Trojan Horses with best-of-breed Digipass strong authentication and e-signature technology. If the customer wants, he can diversify its authentication offerings to its different user segments. He can take his pick out of the range of almost fifty Digipass authentication products, regardless the client platform on which the Digipass software is installed.

“Flexibility, continuity and ease of use and implementation are and have always been the key pillars underneath VASCO’s market leadership,” said Ken Hunt, VASCO’s Chairman and CEO. “All our client authentication and DigipassPlus offerings are supported seamlessly by our one unique server platform, VACMAN Controller, giving our customers a wealth of different authentication scenarios.”

“VASCO’s products are used in over 50 different vertical markets,” said Jan Valcke, VASCO’s President and COO. “With our current product offerings, every company is a potential VASCO-customer. We will strengthen and broaden our offerings continuously, without neglecting our core business, authentication. Authentication is the core of our offerings. We will harness our authentication portfolio by adding related technologies, products and services to our offerings. It is our goal to make VASCO the world’s leading security company specializing in authentication software and services.”

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 technology is delivered via its Digipass software security products. With over 28 million Digipass licenses sold and delivered, VASCO has established itself as a world-leader for strong User Authentication with over 550 international financial institutions and approximately 3,300 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]