news_HSBC Bank Brazil provides full integration between its electronic channels with m-banking and VASCO DIGIPASS for Mobile

OAKBROOK TERRACE, Illinois and ZURICH, Switzerland – June 2, 2009 - VASCO Data Security International, Inc. (Nasdaq: VDSI) (www.vasco.com), a leading software security company specializing in authentication products enabled HSBC Bank Brazil to roll out fully integrated m-banking services for its retail customer base thanks to VASCO’s DIGIPASS for Mobile.

Trough HSBC Direct, its recently launched virtual bank, HSBC Bank Brazil is the first bank to offer fully integrated m-banking services to its retail customers by using DIGIPASS for Mobile, allowing them to withdraw cash from ATMs; conduct transactions; make money transfers & online payments and check their balance, loans & investment statements.

The bank innovated its customer authentication process to access the bank’s online applications. From now on, HSBC’s Direct customers are identified through their social security number instead of their account number. This new method whereby the mobile phone is used as an authentication device enables customers to user their mobile phone to access HSBC’s services through all channels (ATM, Phone Banking and Internet Banking) without needing to remember user name and password combinations.

VASCO’s DIGIPASS for Mobile requires no additional hardware as the authentication application is installed directly on the mobile phone, circumventing extra charges and cell phone coverage limitations.

Customers log on to the application with their social security number and a 6 digit PIN number created by himself and then the client has in his hands a safe password OTP generator. Once this password is verified by VACMAN® authentication software, customers can access any HSBC Direct channel and are able to withdraw cash from an ATM, access Internet Banking or conduct any other transaction such as money transfers and online payments.
VASCO’s technology also offers synchronization between server and platform time taking daylight saving time changes into account. This means that DIGIPASS for Mobile will continue to be fully operational when traveling through different time zones; turning it into a true mobile solution that can be used anywhere, anytime.

“Tackling Internet fraud is an ongoing battle”, says Marcello Veronese, Head of HSBC Direct in Brazil. “HSBC Brazil is therefore committed to providing its customers with the highest level of security however, without compromising on user-friendliness. By deploying an authentication solution based on social security numbers in combination with DIGIPASS for Mobile, we are able to provide secure m-banking services in a convenient and cost effective manner. We strongly believe that mobile banking is the future and will become an innovative and important differentiator in an increasingly competitive financial sector.”

DIGIPASS for Mobile empowers financial institutions to quickly launch m-banking services to their customers in developed and emerging markets creating a new convenient communication and transaction channel to and for end-users. Furthermore the software based authentication solution is very cost-efficient in roll-out and readily accepted by customers as it is integrated into a device that is well recognized by the end-user.

“Banks have recognized the strength of the mobile platform to offer additional services”, says Jan Valcke, President and COO of VASCO Data Security. “Thanks to m-banking, banks can substantially increase their financial services outreach by using a multi-channel approach. VASCO embraces this growing market trend by broadening the availability of its two-factor authentication technology for leading mobile solutions; offering our customer expanded security options and cost-savings opportunities.”

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About HSBC Brazil - HSBC Bank Brazil is a subsidiary of HSBC Holdings, one of the biggest financial organizations of the world. Headquartered in London, HSBC Group is present in 86 countries in the Americas, Europe, Asia, Middle East and Oceania.

About HSBC Direct – A direct bank. This is the concept of HSBC with the launch of HSBC Direct, a virtual bank that allows the customer to make its banking transactions by himself choosing the most convenient channels. The customer pays a unique monthly fee and has at his disposal a package of services with unlimited use.

About VASCO
VASCO is a leading supplier of strong authentication and e-signature solutions and services specializing in Internet Security applications and transactions. VASCO has positioned itself as global software company for Internet Security serving a customer base of approximately 8,500 companies in more than 100 countries, including more than 1,250 international financial institutions. VASCO’s prime markets are the financial sector, enterprise security, e-commerce and e-government.

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," "intend," "mean," 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.

This document may contain trademarks of VASCO Data Security International, Inc. and its subsidiaries, which include VASCO, the VASCO “V” design, DIGIPASS, VACMAN, aXsGUARD and IDENTIKEY.

For more information contact:
Jochem Binst, +32 2 609 97 00, [email protected]