Customers Benefit From a Powerful, Flexible Smart Card/Reader Solution ForSecure Transactions and Digital Signature Applications and for Strong

          Authentication Based on Dynamic Passwords and PKI

MINNEAPOLIS, Nov. 4 /PRNewswire-FirstCall/ – Datakey Inc. (Nasdaq: DKEY)
( http://www.datakey.com ), a trusted developer of smart card solutions for securing
e-business, and VASCO (Nasdaq: VDSI) ( http://www.vasco.com ), a global provider of
enterprise-wide security products that support e-business and e-commerce,
today announced that Datakey’s smart card and client software solution for
enterprises, Datakey CIP, has achieved integration with VASCO’s Digipass(R)
Desk 850 secure smart card reader.

The Digipass Desk 850 is a secure smart card reader that contains a
numeric pin pad. It operates together with Datakey smart cards and client
software in two modes:

1. Connected Mode (secure pin pad smart card reader) – When connected to
a user’s workstation, the smart card is inserted into the Digipass Desk
850, and the user enters his/her PIN directly on the card reader
instead of their keyboard. Because the PIN to activate the
cryptographic functions of the smart card is entered on the reader pin
pad, it is never transmitted in the clear or sent to the PC via a
keyboard. The PIN cannot be captured, resulting in a higher level of
security for the PIN.

2. Disconnected Mode (strong authentication token) – In disconnected
mode, the Digipass reader, Datakey smart card and authentication server
enable users to generate one-time dynamic passwords that safeguard
access to e-business applications, to corporate networks and for secure
transactions.

VASCO and Datakey will demonstrate Datakey’s Model 330 smart cards and the
Digipass Desk 850 smart card reader in VASCO’s booth, #4P016, Cartes,
Nov. 5-7, 2002, at the Paris-Nord Villepinte Exhibition Centre - Paris,
France.

“Digipass Desk 850 creates an extra layer of protection for Datakey’s
already highly secure cryptographic smart cards, effectively eliminating the
possibility that a user’s PIN could be captured and stolen when entered via a
standard keyboard,” said Jan Valcke, VASCO’s Executive Vice President of Sales
and Marketing. “Within environments that require maximum security, Datakey
cryptographic smart cards, together with Digipass readers, represent a strong,
versatile solution for enterprise-wide authentication.”

Tim Russell, vice president and general manager, Datakey, said, “Whether
used in connected mode as a secure pin pad reader, or in disconnected mode for
dynamic password authentication, our joint customers benefit from a powerful
solution for a complete range of authentication and desktop applications. In
addition, this solution further leverages an organization’s smart card
investment by expanding the use of an employee’s smart card to serve as the
single authentication token required throughout the enterprise.”

About VASCO

VASCO secures the enterprise from the mainframe to the Internet with
infrastructure solutions that enable secure e-business and e-commerce, protect
sensitive information, and safeguard the identity of users. The Company’s
family of Digipass(R) and VACMAN(R) products offers end-to-end security
through strong authentication, digital signature, network Single Sign-On, and
Radius, LAN and Web security, while sharply reducing the time and effort
required to deploy and manage security. VASCO’s customers include hundreds of
financial institutions, blue-chip corporations, and government agencies in
more than 50 countries. More information is available at http://www.vasco.com .

About Datakey Inc.

Datakey Inc. ( http://www.datakey.com ) focuses on delivering smart card-based
solutions that assure identity and protect the integrity and privacy of data
shared over public and private networks. Datakey cryptographic smart cards,
client software, desktop applications and card management products enable
organizations to reliably identify users and open doors in both the physical
and online worlds.

Customers and partners alike rely on Datakey technology in a full range of
enterprise applications, including password management, host authentication,
Windows log-on, VPN access, web authorization, desktop security, corporate
badge and building access, biometric integration, public key encryption,
digital certificates and digital signatures.