Vasco and Telos announce joint development and marketing agreement to improve firewall security.

LOMBARD, Ill.--(BUSINESS WIRE)--July 25, 1995--VASCO Corp. (VASCO) announced Tuesday that its subsidiary VASCO Data Security Inc. (VDSI) signed of a joint development and marketing agreement with Telos Corporation of Herndon, Va., a worldwide information technology partner to government and industry.

Under the agreement, Telos Corporation will integrate VDSI's Access Key II into the Telo's NetSeer firewall, providing an even higher level of security through optional extended user authentication for NetSeer clients.

Telo's NetSeer solves two of the major problems affecting companies doing business on the Internet; unauthorized access to the internal system and information leaks to the outside. Unlike other firewalls, NetSeer monitors two-way traffic across the Internet without impacting performance. It is completely transparent and can accommodate faster data rates as network activity increases.

NetSeer, the first of several data security products, was introduced in June of 1995 at the LAN/SEC '95 Conference in Arlington, Va. NetSeer is a second generation firewall product with unique monitoring and reporting capabilities.

VDSI's Access Key II is a rugged, high quality pocket-sized device with an LCD display and numeric keyboard. Access Key II uses a patented optical challenge and response system for increased security on computer networks. The key optically reads a flashing challenge displayed on the computer screen or the user may enter via the numeric keypad on the key itself for remote usage. In both cases, Access Key II generates a unique password with each use, making password protection easy and more secure.

This agreement represents the coming together of two state-of-the-art technologies to provide the best possible solution to protect critical information on corporate computer network systems. The integration of the Access Key II into NetSeer will offer Telos clients an option of extending their user authentication controls beyond the traditional password controls, which have been long known as the weak link of any security system.

Telos Corporation, headquartered in Herndon, Va., provides systems integration, software engineering and development, computer maintenance, and consulting services. Telos gained in-depth experience in the relatively new field of network security through a 25 year partnership with the U.S. Government notably in Command and Control projects on behalf of the Army and System Administration for the Jet Propulsion Laboratory.

VASCO and VDSI improve the productivity and profitability of their clients through consulting, training and the intelligent application of technology. VDSI designs, develops and markets a family of hardware and software security products used to manage and protect access to a wide-range of computer-based information resources.

VDSI's patented and proprietary products provide computer security, Extended User Authentication (EUA), and virus protection for financial institutions, industry and government.

VASCO Corp.'s stock is traded on the Electronic Bulletin Board market system with the symbol VASC.

CONTACT: VASCO Corp., Lombard

Rick Vaden, 708/932-8844

fax: [phone]

email: [e-mail]

world-wide web address: http://www.vdsi.com

or

Telos Corp., Herndon

Suzanne Bakewell, 703/471-6000

fax: [phone]

email: [e-mail]

world-wide web address: http://www.telos.com

or

Rubenstein Associates Inc., New York 

Shelly T. Campbell, 212/843-8051