EXHIBIT 99.1


VASCO ANNOUNCES $8 MILLION CAPITAL RAISE

FINANCING STRENGTHENS BALANCE SHEET - ALLOWS VASCO TO RETIRE DEBT AND PROVIDES
GROWTH CAPITAL

OAKBROOK TERRACE, Ill., and BRUSSELS, Belgium, September 12, 2003 - VASCO Data
Security International, Inc. (Nasdaq: VDSI) ( www.vasco.com), a global provider
of security products that enable e-business and e-commerce, today announced the
sale of $8 million of its Series D Cumulative Convertible Voting Preferred Stock
and warrants to purchase common stock. Wedbush Morgan Securities, Inc. acted as
the Company's lead investment banker and placement agent for the transaction.
Gilford Securities, Inc. acted as a co-placement agent for the transaction.

The preferred stock carries a 5% dividend, is convertible into 4 million shares
of common stock and will vote with the common stock as a class on matters
presented to the stockholders. In addition, investors received 600 thousand
five-year warrants to purchase common stock. The preferred stock is convertible
at a fixed price of $2.00 per share and the warrants are exercisable at $ 3.47
per share, a 20% premium to the closing price of the common stock on Wednesday,
September 10, 2003.

"This financing strengthens VASCO's balance sheet substantially," noted Cliff
Bown, Executive Vice President and Chief Financial Officer. "It provides the
funds needed to repay our loan with Dexia Bank and provides us with additional
working capital to continue to grow our business. After the repayment of the
Dexia loan, VASCO's balance sheet will no longer have any significant debt
outstanding and the Company will have the cash and credit facilities in place
that we believe are needed to support future growth."

"This capital raise was another significant step by the Company's management and
Board of Directors to prepare the Company for future growth. With a strong
balance sheet, two consecutive quarters of positive cash flow and increasing
profitability, and strong demand for our family of user authentication products,
VASCO is well positioned for growth. We continue to work hard to earn the trust
and confidence of our customers, partners and shareholders," stated T. Kendall
Hunt, VASCO's Chairman and CEO.


About VASCO: VASCO designs, develops, markets and supports patented strong user
authentication products for e-business and e-commerce. VASCO's strong user
authentication software is delivered via its Digipass security products, small
"calculator" hardware devices carried by an end user, or in a software format on
mobile phones, other portable devices, and PCs. For user access control, VASCO's
VACMAN products guarantee that only designated Digipass users get access to the
application. VASCO's target markets are the applications and their several
hundred million users that utilize fixed passwords as security. VASCO's
time-based system generates a "one-time" password that changes with every use,
and is virtually impossible to hack, or break. With 10 million Digipass products
sold and ordered, VASCO has established itself as a world-leader for strong user
authentication with over 220 international financial institutions, approximately
1200 blue-chip corporations, and governments representing more than 60
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.


More information is available at www.vasco.com.

For more information contact:
Media: Jochem Binst: +32 2 456 9810, JBINST@VASCO.COM
Investor Relations: Tony Schor, President, Investor Awareness, Inc.:
847-945-2222, tonyschor@investorawareness.com