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Aware, Inc. Reports Fourth Quarter and 2007 Financial Results
Date:2/12/2008

BEDFORD, Mass., Feb. 12 /PRNewswire-FirstCall/ -- Aware, Inc. (Nasdaq: AWRE), a leading supplier of broadband technology and biometrics software, today reported financial results for its fourth quarter ended December 31, 2007.

Revenues for the fourth quarter of 2007 were $6.8 million, an increase of 5% compared to $6.4 million in the same quarter last year. For the year ended December 31, 2007, revenues increased 10% to $26.4 million, compared to $24.1 million for the year ended December 31, 2006.

The Company reports its net income and basic and diluted net income per share in accordance with U.S. generally accepted accounting principles (GAAP), and additionally, on a non-GAAP basis. Non-GAAP net income, where applicable, excludes the effect of stock-based compensation expense. The company uses the non-GAAP information internally to evaluate its operating performance and believes these non-GAAP measures are useful to investors as they provide additional insight into the underlying operating results. However, non-GAAP measures are not stated in accordance with, should not be considered in isolation from, and are not a substitute for, GAAP measures. A reconciliation of GAAP to non-GAAP results has been provided in the attached financial tables.

GAAP net income for the fourth quarter of 2007 was $0.2 million, or $0.01 per diluted share, which included $0.3 million of stock-based compensation charges in accordance with the provisions of FAS 123(R). This compared to GAAP net income of $0.9 million, or $0.04 per diluted share, for the same period a year ago. GAAP net income for the year ended December 31, 2007 was $0.2 million, or $0.01 per share, compared to net income of $1.0 million, or $0.04 per diluted share, for the year ended December 31, 2006.

Non-GAAP net income for the fourth quarter of 2007, excluding the effect of stock-based compensation, was $0.5 million, or $0.02 per diluted share. For the year ended December 31, 2007, the
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