Aware, Inc. Reports 2005 Fourth Quarter Financial Results

BEDFORD, Mass. - February 16, 2006 – Aware, Inc. (NASDAQ: AWRE), a worldwide leader and innovator of broadband intellectual property, today reported financial results for its fourth quarter ended December 31, 2005.

Revenues for the fourth quarter of 2005 were $3.7 million compared to $4.6 million for the same period last year. Net loss for the fourth quarter of 2005 was $1.2 million, or $0.05 per share, compared to a net profit of $0.4 million, or $0.02 per share, for the year-ago period.

For the year ended December 31, 2005, revenues were $15.7 million compared to $16.5 million for the same period last year. Net loss for the year ended December 31, 2005 was $2.5 million or $0.11 per share, compared to a net loss of $1.4 million, or $0.06 per share, for the year-ago period.

Michael Tzannes, chief executive officer, said: "We are pleased with the progress we made in 2005 introducing new products and adding new customers in DSL and biometrics. Our strategy has been to position the company to benefit from growth in these industries and we are confident that we have done so. A highlight for 2006 promises to be our participation in the upcoming Deutsche Telekom 50Mbps VDSL2 deployment.”

Tzannes added, “From the conclusion of today’s conference call until Friday, February 18 at 5:00 p.m., we invite stakeholders to submit questions via email to: investorquestions@aware.com.  We will post questions and answers next week on our website.”

Note: Aware’s conference call will be broadcast live over the Internet today, February 16, 2006 at 5:00 p.m. Eastern Time. To listen to the call, please go to www.aware.com, and click on “Investor Relations.” The conference call may also be heard by calling (719) 457-2637 and referencing the confirmation number 9270640. A replay of the call will be archived on our website after the call.

About Aware
Aware, Inc. designs, develops, licenses and markets DSL technologies that enable broadband communications over existing telephone networks. Its solutions, including splitterless G.lite, full-rate ADSL, ADSL2, ADSL2+, VDSL2, Bonded ADSL2+, Dr. DSL®, StratiPHY™, StratiPHY-Bonded™, StratiPHY2+™, StratiPHY3™ and G.SHDSL, address central office as well as customer premise requirements. Aware is also a leading provider of standards-based biometric transaction and image compression software toolkits. More information can be found at http://www.aware.com.