Aware Sees Growth Opportunities as ADSL2+ Emerges: Announces StratiPHY2+ licensee

BEDFORD, Mass. - November 22, 2004 – Aware, Inc. (NASDAQ: AWRE), a worldwide leader and innovator of broadband intellectual property, announced today that it believes that a transition to ADSL2 and ADSL2+ is underway and that this presents growth opportunities for Aware. ADSL2+ is an important element in making IPTV a reality and allows carriers to offer bundled triple-play (voice, data and video) services over DSL. The transition to ADSL2+ will improve consumers' options and open new revenue opportunities for service providers.

Michael Tzannes, CEO of Aware, said, "Our business is positioned to capitalize on the transition to ADSL2+ with our StratiPHY2+™ silicon platform. This solution supports ADSL2 and ADSL2+ as well as legacy ADSL, and through industry relationships with key equipment vendors, it delivers interoperability excellence across multiple platforms. Please see our website for more details regarding a new StratiPHY2+ licensee as well as product descriptions, articles, and white papers related to this exciting new technology."

Tzannes continued, "As evidenced by France Telecom's recent launch of ADSL2+ broadband Internet access services with Iliad SA, it is clear that service providers are transitioning to new ADSL2 and ADSL2+ solutions. We are optimistic that this trend will continue for ADSL deployments around the world."
The new ADSL2/2+ standards incorporate improvements that increase the data rates, extend the reach, and reduce the maintenance costs of broadband service over phone lines. Aware pioneered important portions of the new International Telecommunications Union (ITU) standards and was one of the first companies to demonstrate standard-compliant ADSL2 and ADSL2+ technology to the industry.

About Aware

Aware, Inc. designs, develops, licenses and markets DSL technologies that enable broadband communications over existing telephone networks. Its solutions, including splitterless G.lite, full-rate ADSL, ADSL2, ADSL2+, VDSL, Dr. DSL®, StratiPHY2+™, and G.SHDSL, address central office as well as customer premise requirements. Aware is also a leading provider of standards-based biometric transaction and image compression software toolkits. More information can be found at http://www.aware.com.

Safe Harbor Warning

Portions of this release contain forward-looking statements regarding future events and are subject to risks and uncertainties, such as estimates or projections of future revenue and earnings and the growth of the DSL market. Aware wishes to caution you that there are factors that could cause actual results to differ materially from the results indicated by such statements. These factors include, but are not limited to: we have a unique business model, our quarterly results are difficult to predict, we depend on a limited number of licensees, we derive a significant amount of revenue from one customer, we depend on equipment companies to incorporate our technology into their products, we face intense competition from other DSL vendors, DSL technology competes with other technologies for broadband access, and our business is subject to rapid technological change. We refer you to the documents Aware files from time to time with the Securities and Exchange Commission, specifically the section titled Risk Factors in our quarterly report on Form 10-Q for the quarter ended September 30, 2004 and other reports and filings made with the Securities and Exchange Commission.

Dr. DSL and StratiPHY2+ are trademarks or registered trademarks of Aware, Inc. Any other trademarks appearing herein are the property of their respective owners.