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Technology Stocks : Aware, Inc. - Hot or cold IPO? -- Ignore unavailable to you. Want to Upgrade?

To: Perry P. who wrote (8140)	3/15/2000 2:48:00 PM
From: Perry P.	Read Replies (1) \| Respond to of 9236

Aware?s Perspective on the Global Character of the ADSL Market Recent Events Reinforce the Enormous Market Opportunity 03/15/00 We have long believed that the deployment of ADSL services would be a global phenomenon. While the cable infrastructure reaches approximately 65% of the homes in the United States, cable services do not reach very many households abroad. Therefore, we have expected that ADSL would be a very attractive broadband solution for Americans, but that it would be a compelling solution for people living outside of the United States. Two events in the last week have reinforced this belief of ours. Our long-time customer, Analog Devices, announced another ADSL deployment in Korea, with Samsung. In our opinion, this announcement both strengthens our position in the Korean market and increases the likelihood that Korea Telecom will meet or exceed its stated goal of 1 million subscribers in 2000. Analog Devices has been especially bullish about their presence in the worldwide ADSL market in the last weeks. In addition to Korea, they have announced a strong market position in China, Germany, France, United Kingdom, Italy, and Brazil. Infineon Technologies completed their initial public offering this week establishing themselves as a powerful independent supplier of semiconductors. Our relationship with Infineon was announced on September 28, 1998. We have been developing central office switch upgrade solutions with Infineon that will enable existing switching equipment to support both voice and high-speed data services. We believe that switch upgrade solutions represent a cost-effective way for telephone companies to quickly upgrade their existing central office and digital loop carrier equipment. Infineon has strong ties into the international market through its longstanding relationship with Siemens. Siemens is the supplier of the most widely sold switching system in the world, its EWSD product. According to a recent analyst report, international markets represent the fastest growing segments of ADSL deployment with estimated compound annual growth rates (CAGR) from 1999-2003 of an averaged 63% for central office (CO) ports shipped and 63% to 79% for customer premise equipment (CPE) ports. These rates are compared to U.S. CAGR rates of 44.3% for CO ports and 63.1% for CPE ports. We continue to believe that the ADSL market will be global and enormous. This commentary 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. Perry