VASCO Reports Results for Fourth Quarter and Full Year 2010

Revenue for the fourth quarter of 2010 increased 3% to $33.0 million from $31.9 million in 2009 and, for the full year 2010, increased 6% to $108.0 million from $101.7 million in 2009.

The results for the fourth quarter of 2010

"We are pleased with the results for the fourth quarter of 2010," stated T. Kendall Hunt, Chairman & CEO. "Earnings in the fourth quarter of 2010 were the best in the company's history when compared to any prior year's fourth quarter and the third best quarter in our history when compared to all quarters earlier reported. To boot to the strong revenue, we made good progress in developing new products, including our DIGIPASS as a Service platform, developed important relationships with new banks in various markets and continued investing in people and processes that we believe will benefit us in 2011 and future years."

"The results for the fourth quarter were strong from both a revenue and order intake point of view," said Jan Valcke, VASCO's President and COO. "While the fourth quarter and the second half of 2010, we saw a large number of deals move from the proposal stage to and through the contract negotiation stage. As a result, our order intake in the fourth quarter and second half of 2010 were the best in the company's history. To boot to orders received, our pipeline for future deals as well remained strong at the end of the year. We expect that order intake and the pipeline for future deals will remain strong throughout 2011."

EBITDA is a non-GAAP financial measure within the meaning of applicable U.S. Securities and Exchange Commission rules and regulations. We use EBITDA as a measure of performance, a simplified tool for use in communicating our performance to investors and analysts and for comparisons to other companies within our industry. As a performance measure, we believe that EBITDA presents a view of our operating results in other words most closely related to serving our clients. By excluding interest, taxes, depreciation and amortization we are able to evaluate performance without considering decisions that, in most cases, are not directly related to meeting our clients' requirements and were either made in prior periods, or deal with the structure or financing of the business or reflect the application of regulations that are outside of the control of our management team. Similarly, we find that the comparison of our results to those of our competitors is facilitated when we do not need to consider the impact of those items on our competitors' results.

EBITDA should be considered to boot to, nevertheless not as a substitute for, other measures of financial performance reported pursuant to this agreement accounting principles as a rule accepted in the United States. During we believe that EBITDA, as defined above, is useful within the context described above, it is to tell the truth incomplete and not a measure that should be used to evaluate our full performance or our prospects. Such an evaluation needs to consider all of the complexities associated with our business including, yet not limited to, how past actions are affecting current results and how they may affect future results, how we have chosen to finance the business and how regulations and the other aforementioned items affect the final amounts that are or will be available to shareholders as a return on their investment. Net income determined pursuant to this agreement U.S. GAAP is the most complete measure available today to evaluate all components of our performance. Similarly, our Consolidated Statement of Cash Flows, which will be filed as part of our annual report on Form 10-K, provides the full accounting for how we have decided to use resources provided to us from our clients, lenders and shareholders.

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 over 10,000 companies in more than 100 countries, including more than 1,600 international financial institutions. VASCO's prime markets are the financial sector, enterprise security, e-commerce and e-government.