Aware, Inc. Announces Technology to Supply Second-Line Residential Voice Over ADSL.

Business/Technology Editors

BEDFORD, Mass.--(BUSINESS WIRE)--March 2, 2000

With Aware's VeDSL Technology, Service Providers Can Utilize ADSL to

Supply Toll-Quality Second-Line Voice to Residences

Aware, Inc. (NASDAQ:AWRE), a worldwide leader in DSL (digital subscriber line) technology for high-speed Internet access over existing telephone lines, today announced its Voice-enabled DSL (VeDSL) technology specifically designed to supply residences with toll-quality second-line voice.

VeDSL Technology

Aware's Voice-enabled DSL (VeDSL) will allow service providers to offer toll-quality second-line voice service to residential consumers. VeDSL is unique among proposed voice-over-DSL solutions in that it transports voice traffic within the ADSL protocol, significantly reducing latency and packetization overhead, thereby ensuring reliability and true toll quality. In addition, VeDSL dynamically allocates bandwidth to support voice calls while maintaining both lifeline plain old telephone service (POTS) and standard-compliant full-rate or G.lite ADSL data access.

Aware's VeDSL technology expands the services that ADSL can provide. With VeDSL, an additional toll-quality voice call can be placed over a customer's single phone line while POTS and high-speed Internet access services are in use. As calls are placed or received, up to 64 kbps of the ADSL data traffic is allocated to support the voice call. When the call is complete, the data can be reallocated to the ADSL data stream.

Michael Tzannes, president and chief executive officer of Aware, said: "ADSL is a revolutionary access technology that enables phone lines to be transformed into multi-service access pipes. In addition to Internet access, voice service is among the most promising applications of ADSL and we've seen strong demand for a cost-effective and scalable solution for residential second line services. VeDSL will allow service providers to bundle a full array of voice, data and Internet services over a single copper pair."

Tzannes added: "By keeping voice within the ADSL protocol, we offer a cost-effective, low-latency, toll-quality solution. VeDSL in the access network complements Voice-over-DSL (VoDSL) using emerging voice packetization techniques such as Voice-over-ATM (VoATM) and Voice-over-IP (VoIP)."

ADSL Background

ADSL is an industry-standard technology that enables regular telephone lines to simultaneously supply multi-megabit high-speed data and regular voice transmissions. Using ADSL, telephone companies around the world are offering high-speed Internet access over the same telephone lines supplying POTS. In addition, competitive local exchange carriers (CLECs) and Internet service providers (ISPs) are using ADSL to supply high speed data service on telephone lines leased from telephone companies. By using ADSL, a home's single telephone line is transformed into a multi-service access pipe offering both POTS and true high speed Internet access.

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 and full-rate ADSL, address central office as well consumer electronics requirements. The company licenses its intellectual property and software to semiconductor manufacturers and equipment manufacturers who sell products incorporating Aware's technology. Aware also markets to systems companies to encourage them to design its technology into their products, and to service providers to encourage them to deploy new broadband services based on its technology. More information about Aware can be found at http://www.aware.com.

Note to Investors:

This press release contains certain statements of a forward-looking nature relating to future events or the future financial performance of Aware. Important factors that could cause actual results to differ materially from those indicated by such forward-looking statements include the risks that Aware has a new and unproven business model, that Aware depends on a limited number of licensees, that Aware depends on equipment companies to incorporate its technology, and that DSL technology competes with other technologies for broadband access. These and other risks are described in various filings that Aware has made with the Securities and Exchange Commission, which risks are incorporated herein by reference.