VASCO and TriCipher Announce Strategic Partnership To Deliver Increased e-Banking Protection

Combined VASCO and TriCipher Solution Delivers Zero Footprint Phishing Protection With An Easy Transition Path to Strong Two-Factor Authentication.

OAKBROOK TERRACE, Ill., and San Mateo, CA, December 21, 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, and TriCipher, Inc., a leading innovator of strong authentication for the real world, today announced that VASCO’s Digipass strong user authentication will be integrated into TriCipher Inc.’s (www.tricipher.com) TriCipher Armored Credential System (TACS) and marketed globally .

The combined solution is the first authentication infrastructure for financial institutions that provides a variety of credential types ranging from “zero footprint, zero hardware” to high security armored Digipass devices. The combined solution protects against many forms of phishing, including “Man in the Middle” attacks. VASCO’s VACMAN Controller and Digipass authentication products have been integrated into the FIPS 140-1 Level 2 certified TACS system, enabling customers to balance authentication security, cost, and ease of use by leveraging any or all of the credential type native to TACS or Digipass.

“By partnering with TriCipher, we have provided customers with an easy, highly manageable migration path to Digipass strong authentication products. Financial institutions can now easily match authentication strength to risk to comply with FFIEC guidance without needing to implement several separate infrastructures.” said Jan Valcke, VASCO’s President & COO.

“Most security practitioners believe that we need to get to an end goal of strong token based solutions exemplified by the Digipass technology,” said Ravi Ganesan, CEO, TriCipher Inc. “This combined offering meets the needs of banks who want to walk before they run in meeting FFIEC requirements, but retain the ability to move quickly to very strong authentication as threats change.”

The integrated solution is available immediately.

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 2,000 blue-chip corporations and governments located in more than 100 countries.

About TriCipher

TriCipher, Inc. provides strong authentication for the real world. The first authentication system that issues multiple types of credentials from a single infrastructure, the TriCipher Armored Credential System™ (TACS) allows for authentication strength to change in response to new threats without any infrastructure changes. Its patented technology fills the gap between authentication systems that are not secure enough and those that are too hard to use and deploy. TriCipher’s innovative approach to strong multifactor authentication protects against phishing and eliminates dictionary attacks. Founded in 2000, TriCipher is headquartered in San Mateo, California. The company was incubated as NSD Security before launching as a separate entity in 2005. Investors in TriCipher include ArrowPath Venture Capital, Intel Capital, Trident Capital, and Wasatch Venture Partners. For more information, go to www.tricipher.com.

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TriCipher Armored Credential System is a trademark of TriCipher, Inc. All other products and services mentioned are the property of their respective companies.

For more information, contact:

Elizabeth Safran, Trainer Communications for TriCipher, Inc.
tc@trainercomm.com, (408) 920-0585

Jochem Binst, Vasco, Inc., +32 2 456 9810, jbinst@vasco.com

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, jbinst@vasco.com