Aware and Siemens Announce Strategic Alliance to Define Next-Generation Architecture for DSL-Enabled Central Office Switch.

BEDFORD, Mass.--(BUSINESS WIRE)--Feb. 3, 1999--

First Integrated Communications Platform to Incorporate DSL and Voice

Will Support Cost-Effective, Plug-and-Play Switch Upgrade

For Service Providers, Accelerating Mass Deployment

Aware, Inc. (NASDAQ:AWRE), a worldwide leader in xDSL (digital subscriber line) technology for high-speed Internet access, and Siemens' Information and Communication Networks group, a worldwide leader in end-to-end solutions for voice, data and mobile communication networks and a group division of Siemens AG Berlin, Munich, Germany, today announced a strategic alliance agreement under which the companies are defining the next-generation architecture for Siemens' DSL-enabled EWSD central office switches. The Siemens EWSD switch is the most widely sold carrier-class switching system in the world.

The alliance will bring together state-of-the-art techniques in DSL transmission and broadband system maintenance, and will focus specifically on integrating voice and G992.2 standard-compliant data directly onto a splitterless line interface. The integration of splitterless G992.2-compliant data transmission at the Siemens central office switch is a revolutionary step that enables the majority of installed Siemens EWSD switches and all new Siemens switches, including those in the new Powernode and Internode Series, to be easily upgraded to a complete broadband data and voice central office solution.

The strategic alliance between the two communication companies calls for Aware to provide optimized, G992.2-compliant DSL system designs, software models and extensive system-level optimization services, while Siemens ICN will provide extensive system-level expertise in the integration of voice and DSL data, as well as in system maintenance. The maintenance features will support the service provider in the installation and servicing of the integrated broadband data and voice communication platform.

"The strategic alliance with Aware will fulfill our vision of integrating data and voice in our switching systems to enable a complete and unified communication service suitable for mass market deployment," said Hans-Eugen Binder, president of Siemens' Wireline Networks Group.

Binder added: "This integration is another example of the power of semiconductor solutions to yield high-volume consumer products and services to everybody's home at reasonable prices. Our cooperative effort will enable easy, on-demand upgrades of potentially more than 180 million installed lines worldwide, from POTS to G.Lite or equivalently G.992.2 data communication. Siemens has been preparing EWSD for this innovative step in communication technology for the last two years. With Aware's cooperation, we will complete and launch our first field applications in EWSD switches by spring this year."

"This revolution in the central office switch architecture will produce a cost-effective and versatile deployment solution for service providers using Siemens Central Office switches, remote Digital Line Units (Digital Loop Carrier), or Shelter applications. This achievement will surely accelerate the broad deployment of DSL services to the consumer market. Through our work with Siemens ICN, we are able to optimize our standard-compliant technology to create tangible value at the central office equipment level," said Michael A. Tzannes, president and chief executive officer of Aware.

Aware's DSL-Lite technology delivers data transmission speeds of up to 1.5 Mbps downstream and up to 512 kbps upstream at distances of up to 24,000 feet. Aware's DSL-Lite technology optimizes broadband data transmission over telephone lines without interrupting regular telephone service, enabling always-on data connections.

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 integrated circuits or equipment incorporating Aware technology. Aware markets its technology 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.

About Siemens' Information and Communication Networks Group

The Siemens Information and Communication Networks Group was founded in 1998 as part of the restructuring of the Siemens Information and Communications Business segments. Information and Communication Networks, with approximately 60,000 employees and a business volume of DM 25 billion, is one of the worldwide leading providers of end-to-end solutions for voice, data and mobile communications networks.

The Information and Communication Networks range covers products, systems, solutions, service and support for the installation and maintenance of complete corporate and carrier networks. This includes services and consulting covering aspects from network planning and financial advice through commissioning and user training. The Wireline Network Communication division of Siemens Information and Communication Networks provides Hicom communications system and the EWSD digital switching systems for corporate customers and network operators/carriers of every size. With more than 180 million line units in over 100 countries, EWSD is the most successful digital switching system worldwide. Every two seconds a new EWSD connection is put into operation.

Note to Investors:

This press release contains certain statements of a forward-looking nature relating to future events or 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.