VASCO has established a new legal entity in Switzerland, VASCO Data Security International GmbH, which with the United States, will jointly own and manage all of the Company's technology-related intellectual properties. Personnel assigned to the office in Zurich will have oversight responsibility for all of the Company's activities in all countries other than those in North, Central and South America. Additionally, the Company announced that it would hire a number of senior executives in the Zurich office that would have worldwide responsibilities. Mr. Bown, VASCO's Executive Vice President and Chief Financial Officer, will oversee the creation of the office and has agreed to relocate to Zurich for a minimum period of two years. The Company further noted that it did not expect that the opening of the Zurich office would have an impact on personnel currently located in Brussels Belgium.

"VASCO is continuously looking for ways to improve profitability by becoming more efficient," said T. Kendall Hunt, VASCO's Chairman and CEO. "As our growth rate has accelerated, we were looking for a location where the work and regulatory environments were favorable for businesses. We believe that Switzerland is such a place. We also believe that Switzerland not only offers a good market for our products, but is also centrally positioned in Europe, with strong gateways to Eastern Europe, Germany and Southern Europe."