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Aware, Inc. Extends ADSL2plus Leadership by Establishing Interoperability with Alcatel 7300 ASAM

Major milestone signals the arrival of advanced services over DSL

BEDFORD, MA – June 7, 2004  – Aware, Inc. (NASDAQ:AWRE), a worldwide leader and innovator of broadband intellectual property, today announced its StratiPHY2+™ customer premise equipment (CPE) digital chip has achieved interoperability with Alcatel's 7300 Advanced Services Access Manager (ASAM), reaching data rates in excess of 24 Mbps. StratiPHY2+ is a complete physical instantiation of Aware's intellectual property, which includes a digital chip and software technology. StratiPHY2+ is compliant with all annexes of the ITU ADSL2/2plus standards, including Reach-Extended ADSL2 and Automode. 

"Achieving such a high level of performance between the Alcatel ASAM and CPE based on Aware's StratiPHY2+ demonstrates that multi-vendor ADSL2/2plus interoperability is a reality today, " commented Peter LeBlanc, vice president of marketing of Aware. "This key milestone serves as a signal to service providers that the equipment they need to compete against cable with advanced services such as video- and voice-over-IP is now available."

StratiPHY2+ is fully compliant with the ITU standards ADSL2 (G.992.3) and ADSL2plus (G.992.5), which doubles the downstream bandwidth of ADSL, resulting in significant downstream data rate increases on shorter phone lines. It also supports Reach-Extended ADSL2 (RE-ADSL2), which uses new power spectral density (PSD) masks that significantly increase ADSL's reach by up to 40%. Customers with phone lines longer than 18,000 feet have often been considered out of reach of an ADSL connection, so offering services to these customers by extending the reach of DSL is an effective way for carriers to expand their customer base. 

StratiPHY2+ also incorporates the benefits of Automode, an ADSL2 standard feature that analyzes link information gathered during modem initialization to intelligently determine the best configuration for a given subscriber line. It enables service providers to smoothly configure a subscriber line to best match the service level, such as ADSL2plus higher rates or RE-ADSL2, thereby optimizing revenue per subscriber.

Aware will feature StratiPHY2+ in its booth (#21729) at SuperComm 2004 from June 22 - 24 in Chicago. For more information about Aware, StratiPHY2+ or interoperability, please visit Aware's website at www.aware.com.

About Aware
Aware, Inc. designs, develops, licenses and markets DSL technology that enables broadband communications over existing telephone networks. Its solutions, including splitterless G.lite, full-rate ADSL, ADSL2, ADSL2+, Dr. DSL®, StratiPHY™, StratiPHY2+™, BondedADSL™, and G.SHDSL address central office as well as customer premise requirements. More information about Aware 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 March 31, 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.

Contact:
Sarah LaLiberte
Aware, Inc.
sarahl@aware.com
781-687-0695

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