VASCO to Expand its Authentication Technology Portfolio with Acquisition of Risk IDS; Terms Undisclosed

ASCO Data SecurityInternational (NASDAQ: VDSI), a global leader in authentication, digitalsignatures, and identity management, announced today that it has executed adefinitive agreement to acquire Risk IDS, Ltd., a provider of risk-basedauthentication solutions to the global banking community.Risk IDS provides online transaction risk management and intelligentauthentication decision solutions. The core technology is a Dynamic ChallengePlatform that is optimized for stability and high volume. The platform isdesigned to evaluate the profile of the user requesting access to the systemto determine the risk profile associated with the transaction. It features areal-time analysis engine that uses rules and statistical techniques toimprove real-time fraud detection. VASCO will integrate Risk IDS' risk-basedauthentication technology into future product offerings.Risk-based authentication provides a more flexible process of authenticationto ensure higher risk profiles result in stronger challenges. It allows theapplication to request additional credentials when the risk level is higher. Contextual information that may be used in risk-based authentication includesuser location, device characteristics, transaction amount, and other factors.This method ensures that the appropriate level of authentication is applied toease the process when only a lower level of security is needed. It willtransparently apply more stringent methods when necessary to prevent fraud.According to T. Kendall Hunt, VASCO's Chairman and CEO, the acquisition willenhance VASCO's leadership position in the authentication segment and extendthe company's broad product portfolio. "Our clients face increasinglysophisticated attacks from well-organized criminal hacking organizations thatcreate new attack vectors every day," said Hunt. "Our focus is to always keepour clients one step ahead of an ever-expanding threat horizon and this is animportant move in support of that mission."As part of the agreement, key members of Risk IDS will join VASCO. "Thisacquisition puts Risk IDS within a corporate environment that will ensure thedevelopment and international distribution of our software," said RichardChurchman, Managing Consultant and founder of Risk IDS. "I am delighted to bejoining a NASDAQ listed company with a management team that championsentrepreneurial values while continuing to grow a well-respected and effectivebusiness."Financial terms of the transaction are not being disclosed. The acquisition isnot expected to have a material impact on VASCO's 2014 financial results.About VASCOVASCO is a leading supplier of strong authentication and e-signature solutionsand services specializing in Internet security applications and transactions.VASCO has positioned itself as a global software company for Internet securityserving a customer base of approximately 10,000 companies in more than 100countries, including approximately 1,700 global financial institutions.VASCO's primary markets are the financial sector, enterprise security,e-commerce and e-government.About Risk IDSRisk IDS develops software security solutions that help financial institutionsmanage risk in a variety of ePayment channels. Risk IDS focuses on risk-basedauthentication in eBanking while also having a strong presence in card fraudprevention, eCommerce fraud prevention, acquiring credit risk monitoring andanti-money laundering. Risk IDS has built an impressive client base withbanks and payment institutions throughout the world in using their softwareForward Looking Statements: This press release contains forward-looking statements within the meaning ofSection 21E of the Securities Exchange Act of 1934 and Section 27A of theSecurities Act of 1933. These forward-looking statements (1) are identifiedby use of terms and phrases such as "expect," "believe," "will," "anticipate,""emerging," "intend," "plan," "could," "may," "estimate," "should,""objective," "goal," "possible," "potential," "project," and similar wordsand expressions, but such words and phrases are not the exclusive means ofidentifying them, and (2) are subject to risks and uncertainties and representour present expectations or beliefs concerning future events. VASCO cautionsthat the forward-looking statements are qualified by important factors thatcould cause actual results to differ materially from those in theforward-looking statements. These risks, uncertainties and other factorsthat have been described in our Annual Report on Form 10-K for the year endedDecember 31, 2013 and include, but are not limited to, (a) risks of generalmarket conditions, including currency fluctuations and the uncertaintiesresulting from turmoil in world economic and financial markets, (b) risksinherent to the computer and network security industry, including rapidlychanging technology, evolving industry standards, increasingly sophisticatedhacking attempts, increasing numbers of patent infringement claims, changes incustomer requirements, price competitive bidding, and changing governmentregulations, and (c) risks specific to VASCO, including, demand for ourproducts and services, competition from more established firms and others,pressures on price levels and our historical dependence on relatively fewproducts, certain suppliers and certain key customers. Thus, the results thatwe actually achieve may differ materially from any anticipated resultsincluded in, or implied by these statements. Except for our ongoingobligations to disclose material information as required by the U.S. federalsecurities laws, we do not have any obligations or intention to releasepublicly any revisions to any forward-looking statements to reflect events orcircumstances in the future or to reflect the occurrence of unanticipated