Fundtech and VASCO Data Security Partner to Deliver Multifactor Authentication for Online Banking Transactions

Business Wire, April 27, 2006

JERSEY CITY, N.J. -- Fundtech Ltd. (NASDAQ:FNDT), a leading provider of end-to-end corporate banking software and services, today announced a strategic alliance with VASCO Data Security International (NASDAQ:VDSI) to incorporate multifactor authentication into Fundtech's cash management and payments products. The partnership will enable Fundtech clients to seamlessly integrate advanced security services using a secondary level of customer verification for high-risk online transactions.

Single factor authentication is now regarded as insufficient for financial institutions employing browser based products that generate transactions or display customer data. As instances of online bank fraud increase, the FFIEC (Federal Financial Institutions Examining Council) has enacted new regulations mandating that financial institutions implement multifactor authentication by the end of 2006 to validate the identity of customers using online products and services.

Fundtech is an early adopter of secondary authentication, and has a proven track record of successful multifactor security deployments among a number of its international cash management customers. In light of the new FFIEC regulations, Fundtech is making secondary authentication easy to implement across its product lines and has partnered with VASCO because of it large installed based and its product's superiority.

By leveraging VASCO's Digipass solution, Fundtech can offer customers of any size a cost-effective, portable solution to certify customer identity and mitigate risk. Each Digipass strong authentication product contains a unique algorithm that generates a time-based, one-time use password that changes with every use and cannot be duplicated, remotely hacked, or spoofed. Other functionalities of Digipass include e-signatures, host authentication, challenge-response and more. All Fundtech browser-based products can connect to Digipass via a customized API, providing clients a seamless validation process.

"By partnering with VASCO, Fundtech is providing its customers with a seamless integration to the highest quality security solutions available," said Brian Jou, Fundtech's Senior Vice President of US Products. "We are committed to making it easy for our customers to comply with the new regulations by offering them a user-friendly security solution that delivers piece of mind for their high-risk transactions."

"VASCO is delighted to offer Fundtech's clients user authentication solutions that defend against today's threats and tomorrow's potential hazards," said Jan Valcke, President and COO of VASCO. "Our Digipass products will provide Fundtech customers an easy to use, proven solution to address the security chasm created by using static passwords to authenticate users, delivering an extra layer of security to protect clients from increasing forms of online transaction fraud."

About Fundtech

Fundtech Ltd is a leading provider of software solutions and services to financial institutions around the world. The Company develops and sells a broad array of products across the "financial supply chain" that enable banks to automate their corporate banking activities in order to improve efficiency; while providing their customers with more choices, more convenience and more control. Fundtech offers products in four major categories: cash management, payments, settlements and financial messaging. Fundtech has recently expanded its product line with a securities post-trade settlement processing system.

With twelve offices on four continents, Fundtech is a significant provider of financial technology throughout the world. Fundtech is a publicly traded company, listed on NASDAQ (FNDT) and the Tel Aviv Stock Exchange. The company was founded in 1993. For more information, please visit www.fundtech.com.

About VASCO Data Security International

VASCO designs, develops, markets and supports patented user authentication products for the financial world, remote access, e-business and e-commerce. VASCO's user authentication software is delivered via its Digipass hardware and software security products. With over 20 million Digipass products sold and delivered, VASCO has established itself as a world leader for strong user authentication with over 440 international financial institutions and approximately 2,300 blue-chip corporations and governments located in more than 100 countries. VASCO can be found on the Web at www.vasco.com.

Forward Looking Statements:

This news release contains forward-looking statements made pursuant to the safe-harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements may include, but are not limited to, projections of revenues, income or loss, capital expenditures, plans for growth and future operations, competition and regulation. Forward-looking statements are inherently subject to risks and uncertainties, many of which cannot be predicted or quantified. When used in this Release, the words, "estimates," "expects," "anticipates," "believes," "plans," "intends," and variations of such words and similar expressions are intended to identify forward-looking statements that involve risks and uncertainties. Future events and actual results could differ materially from those set forth in, contemplated by or underlying the forward-looking statements. The factors that could cause actual results to differ materially from those discussed or identified from time to time in Fundtech's public filings, including its Annual Report on Form 20-F for the year ended December 31, 2004, including general economic and market conditions, changes in regulations and taxes and changes in competition in pricing environment. Undo reliance should not be placed on these forward-looking statements, which are applicable only as of the date hereof. Fundtech undertake no obligation to revise or update these forward-looking statements to reflect events or circumstances that arise after the date of this Release or to reflect the occurrence of unanticipated events.