Aware, Inc. to Sell Home Networking and DSL Technology to Lantiq

Bedford, MA – October 20, 2009 – Aware, Inc. (NASDAQ: AWRE) today announced it has agreed to sell assets associated with its Home Networking and DSL product lines for $6.75 million to Lantiq Broadband Holdco, Inc. and Lantiq Deutschland GmbH (“Lantiq”). Lantiq is a newly formed fabless semiconductor company being spun out of Infineon Technologies AG and funded by Golden Gate Capital.

The sale includes Aware’s home networking and digital subscriber line (DSL) technology and related fixed assets, an approximately 40-person silicon IP development team, and certain patents relating to these technologies.

Additionally, Aware and Lantiq have formed a strategic cooperation with respect to embedded wireline diagnostic technology and products that is expected to benefit both parties in their respective target markets. The transaction is expected to close by the end of 2009 and is subject to the closing of the acquisition of Infineon’s Wireline Division by Golden Gate Capital/Lantiq in addition to standard closing conditions.

“This transaction represents the positive outcome we have been seeking for our DSL and home networking silicon IP licensing business. We have had a long and very successful working relationship with what is now known as Lantiq, and are excited about the potential of our future cooperation in embedded wireline diagnostics,” said Michael Tzannes, Chairman and Chief Executive Officer.

Going forward, Aware will focus on DSL test and diagnostics opportunities, strategic monetization of its patent portfolio and its biometrics and imaging business.

Aware will be hosting an earnings release conference call today at 5:00 p.m. Eastern Time which will include a discussion of the transaction with Lantiq. To listen to the call, please go to www.aware.com/ir. The conference call may also be heard by calling 719-325-2338 and referencing the confirmation number 4184148. A replay of the call will be archived on our website after the call.

About Aware

Aware is a leading technology and software supplier for the telecommunications and biometrics industries. Aware has pioneered innovations at telecommunications standards-setting organizations for DSL and home networking. Telecom equipment vendors and phone companies use Aware's DSL test and diagnostics modules and Dr. DSL® software to provision and troubleshoot DSL circuits globally. Aware is also a veteran of the biometrics industry, providing biometric and imaging software components used in government systems worldwide since 1992. Aware's interoperable, standard-compliant, field-proven imaging products are used in a number of applications, from border management to criminal justice to medical imaging. Aware is a publicly held company (NASDAQ: AWRE - News) based in Bedford, Massachusetts. www.aware.com