To: Paul Lee who wrote (8288 ) 3/28/2000 4:14:00 PM From: Scrapps Read Replies (2) | Respond to of 9236
[Clips from the SEC 10-Q] Fast-retrain technology was pioneered by Aware, and we have filed patents to protect this invention. We believe that G.lite will be embraced by the consumer electronics industry, including personal computer manufacturers, and that service providers will begin commercial deployments of G.lite services in the future. ------------------------------------------------------ We have invented and patented a proprietary communications technology based on wavelet mathematics called discrete wavelet multitone, or DWMT. We believe that, as a result of our research and development of DWMT technology, we are a leader in the commercialization of wavelets for telecommunications. The wavelet transform yields significantly better subchannelization than the Fourier transform. This technique more closely approximates ideal subchannelization, enabling DWMT technology to outperform DMT technology in noisy environments. ------------------------------------------------------- Patents. We hold eleven patents pertaining to multicarrier modulation for broadband communications and have eight additional patents pending, all of which apply to digital signal processing and digital communications. These patents underlie our technology offerings. ------------------------------------------------------- In 1993, we began an effort to produce commercially marketable wavelet image compression software products. We currently offer six software-based compression products, including: * WSQ by Aware, which compresses digital fingerprint data for use by law enforcement agencies such as the Federal Bureau of Investigation; * AccuPress for Radiology, which compresses digital radiographs and other types of medical imagery; * MotionWavelets, which compresses video image data in real time; * AccuPress for Multimedia, a general-purpose compression product; * AccuPress for Remote Sensing, which compresses satellite-based remote sensing imagery; and * SeisPact, which companies in the oil and gas industry, can use to store and transmit large amounts of seismic data. STRATEGIC CUSTOMERS Our strategy with respect to customers is to select companies based on development compatibility, market position and the potential for future royalty revenue. Our strategic customers include the following companies: Analog Devices, Inc. We began working with Analog Devices in 1993 to develop ADSL chipsets. Analog Devices has licensed our full-rate ADSL and G.lite technology. Over the years, we have jointly developed multiple generations of Analog Devices' DSL chipsets that incorporate our technology, including the first chipset that implements both full-rate ADSL and G.lite technology. Analog Devices has announced that it has a number of customers for its chipsets, including leading companies such as Cisco, Nortel, Lucent, Intel, Hyundai, ECI Telecom, 3Com and Newbridge Networks. Infineon Technologies AG. We began working with Infineon, formerly Siemens Semiconductor, in August 1998. Infineon has licensed our full-rate and G.lite technology for chipsets targeted at telephone company central office switches. Their central office chipset brings together our DSL technology and Infineon's digital signal processor, high-performance broadband subscriber line, and converter technologies. The Infineon chipset is being used by Siemens in the DSL upgrade of their EWSD digital electronic switching system. Intel Corporation. We announced our relationship with Intel in October 1999. Intel has licensed our full-rate and G.lite technology for DSL solutions targeted at the residential broadband market. Intel has not publicly announced any customers at this time. Lucent Microelectronics Group. We began working with Lucent in December 1997. Lucent has licensed our G.lite technology for its Wildwire chipset. The Wildwire chipset is the first personal computer modem chipset for high-speed Internet access incorporating both G.lite and 56 Kbps technology. Lucent has announced that several major 10 <PAGE> 11 personal computer and modem manufacturers have selected its Wildwire chipset for their products. Some of their announced customers include Compaq, Dell, Hewlett-Packard, and Zoom Telephonics. NEC Corporation. We began working with NEC in May 1999. NEC has licensed our G.lite technology for use in its uPD98541 ADSL chipset for customer premises applications. NEC is the second largest semiconductor manufacturer in the world. NEC has not publicly announced any customers at this time. Siemens Information and Communications Networks ("ICN") Group. We began working with Siemens ICN in September 1998. We entered into an agreement under which we and Siemens ICN are defining the next-generation architecture for Siemens' DSL-enabled EWSD digital electronic switching system. Siemens' EWSD product is the most widely sold carrier-class switching system in the world. The relationship between Aware and Siemens is intended to produce a specification for Siemens DSL-enabled central office switches, which will be based on our G.lite technology. ST Microelectronics. We began working with ST Microelectronics ("ST") in December 1998. ST has licensed our G.lite technology for chipsets targeted at telephone company central office switches. The ST/Aware DSL solution brings together our G.lite technology and ST's advanced integrated circuits for communications applications. ST is the third largest seller of telecommunications chipsets in the world. 3COM/US Robotics. In March 1997, we licensed our full-rate ADSL technology to 3COM (then US Robotics) for use in 3COM's full-rate ADSL product offerings. 3COM/US Robotics DSL product line includes PCI cards, USB modems and office routers. 3COM/US Robotics is one of the largest sellers of modems in the world. zzzzzzzzzzzzzzzZZZZZZZZZZZZZZZZZZZZzzzzzzzzzzzzzzzzzzzzZZZZZZZZZZzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzz