Aware's G.Lite Technology Wins R&D Magazine 1999 R&D 100 Award.

BEDFORD, Mass.--(BUSINESS WIRE)--Aug. 26, 1999--

Aware, Inc. (NASDAQ:AWRE), a worldwide leader in xDSL (digital subscriber line) technology and a pioneer of G.Lite technology, today announced that its G.Lite technology was selected by R&D Magazine as one of the 100 most technologically significant new products of 1998.

The R&D 100 awards date back to 1963 and have been called "The Oscars of Invention" by The Chicago Tribune and "the Nobel Prizes of applied research" by others. Past winners include breakthroughs such as Polacolor film, the fax machine and the touch-sensitive screen. The complete list of the R&D 100 winners will be featured in the September issue of R&D Magazine, which will appear on newsstands September 15 and on R&D's Web site at www.rdmag.com. R&D Magazine selected this year's winning technologies with the help of 70 outside experts who participated in the judging.

"We believe this award further demonstrates Aware's DSL technology leadership position and is a primary reason why customers like Analog Devices, Lucent Microelectronics, Infineon, Siemens, NEC, 3Com and ST Microelectronics have selected Aware as a source for DSL technology," said Michael Tzannes, president and CEO of Aware, Inc. "We are confident that the strength of our technology will allow us to add new semiconductor customers to this list. We believe that our relationships with current and new customers should allow Aware-enabled chipsets to capture a significant share of the DSL market."

"We are also encouraged by recent analyst reports that indicate DSL is being deployed in growing numbers," noted Tzannes. On August 19, 1999, Cahners In-Stat Group published a report entitled "Q2'99 Analog and Digital Modem Market Analysis" that indicated that worldwide ADSL modem shipments grew 59% sequentially in Q2'99. Cahners noted that this growth was indicative of broadening service roll-outs in the U.S. and internationally. They further estimated that ADSL modem shipment would top one million by year end 1999."

"One of the factors helping to fuel DSL deployments is the industry's efforts to further interoperability among DSL equipment manufacturers, said Tzannes. The ADSL Forum recently held another interoperability showcase at the University of New Hampshire. Events such as these demonstrate the industry's commitment to interoperability and are an important step towards mass-market deployment of ADSL. I should add that we were very pleased with the results that Aware and its customers were able to achieve at this event, and we believe that these results further validate our technology leadership in the industry."

Continuing, Tzannes said, "We were also pleased with a recent press release by Analog Devices, Aware's first semiconductor customer. Last week Analog Devices announced that according to Dataquest and Allied Business Intelligence, Analog Devices is a clear market leader in ADSL. Dataquest indicated that three of the top five companies worldwide are customers of Analog Devices ADSL solutions, and that Analog Devices customers captured 60% market share in 1998. Allied Business Intelligence, citing ADI's wide number of design wins with leading modem/telecommunications product manufacturers, said that it expects ADI to be the market share leader in 1999."

The 1999 R&D 100 Awards Banquet will be held on Thursday September 23, 1999 at Chicago's Museum of Science and Industry.

About Aware

Aware, Inc. designs, develops, licenses and markets DSL technology that enables high-speed Internet access over existing telephone networks. The company licenses its intellectual property and software to semiconductor manufacturers and equipment manufacturers who sell products incorporating Aware 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 described in various SEC filings that Aware, Inc. has made on its Forms S-1, 10-K, and 10-Q, which factors are incorporated herein by reference.