Aware, Inc. First To Demonstrate Bonded ADSL2plus; Multipair ATM Bonding Enables Three Channels of HDTV on Two Phone Lines.

BEDFORD, Mass. -- Aware, Inc. (NASDAQ:AWRE), a worldwide leader and innovator of broadband intellectual property, today announced that it will demonstrate bonded ADSL2plus in its booth (#21729) at SUPERCOMM 2004 in Chicago next week. The demo is compliant with the draft proposed American National Standard for ATM-based multi-pair bonding, which enables ADSL throughputs on multiple telephone lines to be aggregated, or "bonded." Bonded ADSL2plus combines ATM-layer bonding with ADSL2plus technology to increase customers' data rates. It can be implemented using off-the-shelf ADSL2plus chipsets and Aware bonding technology. Aware's SuperComm bonded ADSL2plus demo will consist of an Aware StratiPHY2+(TM)-based CPE connected to an ADSL2plus multi-port central office linecard, and will show delivery of data rates of more than 40 Mbps over two regular phone lines.

Bonding just two ADSL2plus lines provides enough bandwidth to deliver three channels of high-definition television on short lines, such as those provisioned from apartment buildings or neighborhood pedestals, or two standard-definition television channel on lines as long as 12,000 feet. The draft bonding standard leverages the inherent flexibility of an ADSL2/2plus solution, and expands service providers' ability to serve a broad range of applications in a variety of environments.

"In North America, most homes already have two phone lines available, and bonded ADSL2plus enables carriers to make use of them as a cost-effective upgrade path to deliver advanced video services," commented Peter LeBlanc, vice president of marketing at Aware. "We expect bonded ADSL2plus to play a key role in carriers' strategies to utilize existing copper plants to deploy profitable services to as many customers as possible."

About StratiPHY2+

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, which enables devices that support multiple standards in ADSL2 family to select the best mode of operation.

Aware's bonded ADSL2plus demo is one of several that showcase ADSL advancements available to enable value-added services to customers. The demos will take place in Aware's booth (#21729) at SuperComm 2004 from June 22 - 24 in Chicago. For more information about Aware or bonded ADSL2plus, please visit Aware's website at www.aware.com. A copy of Aware's new "Bonded ADSL2plus" white paper may be downloaded at: http://www.aware.com/products/dsl/whitepapers.htm.

About Aware

Aware is a worldwide leader in the development and marketing of intellectual property for broadband communications. Aware licenses its DSL technology to semiconductor manufacturers that build integrated circuits for central office and customer premises. Its products, including StratiPHY2+(TM) and Dr. DSL(R), include implementations of the ITU standards for ADSL, ADSL2, ADSL2plus, VDSL, and G.SHDSL, and solutions include reference designs, test chips, and bare die for MCM solutions, as well as advanced diagnostics software and DSL development equipment. 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.