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Aware, Inc. Reports First Quarter 2009 Financial Results
Date:5/6/2009

growth of proprietary biometric systems which do not conform to industry standards; our ability to sell services contracts in a manner that is consistent with our business model; our ability to deliver service contract milestones; and our dependence on third party contractors and consultants to deliver certain services contract milestones. We refer you to the documents Aware files from time to time with the Securities and Exchange Commission, specifically the section titled Risk Factors in our annual report on Form 10-K for the fiscal year ended December 31, 2008 and other reports and filings made with the Securities and Exchange Commission.

Aware, StratiPHY, and Dr. DSL are trademarks or registered trademarks of Aware, Inc.

                                     AWARE, INC.
                       CONSOLIDATED STATEMENTS OF OPERATIONS
                       (In thousands, except per share data)
                                    (unaudited)

                                              Three Months Ended
                                                   March 31,
                                             2009           2008
    Revenue:
      Product sales                         $2,819          $3,924
      Contract revenue                       1,277           1,521
      Royalties                                477             431
        Total revenue                        4,573           5,876

    Costs and expenses:
      Cost of product sales (1)                513             824
      Cost of contract revenue (1)             908           1,018
      Research and development (1)           3,111           3,528
      Selling and marketing (1)              1,081             969
      General and administrative (1)         1,213           1,193
        Total costs and expenses             6,826           7,532

    Net loss from operations                (2,253)         (1,656)
    Inte
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SOURCE Aware, Inc.
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