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Aware, Inc. Reports Fourth Quarter and 2008 Financial Results
Date:2/21/2009

d compensation, was $5.4 million, or $0.23 per diluted share. For the year ended December 31, 2008, the company had non-GAAP net income, excluding the effect of $1.5 million of stock-based compensation, of $3.3 million, or $0.14 per share.

Michael Tzannes, Aware's chief executive officer, said, "Overall, 2008 was encouraging in many respects. We are pleased that annual revenues grew for the third year in a row and that we were profitable. Biometrics revenues grew nearly 60% and maintained strong operating metrics. We expanded our DSL test and diagnostics product offerings and are positioned to capitalize on test infrastructure deployments by phone companies. We also executed a significant contract relating to a portion of our patent portfolio, validating the market opportunity for high-quality patents.

However, the slowing economy has had a negative impact on us and is likely to continue to do so. We saw revenues trend down in most of our traditional product offerings in the fourth quarter. While we have a strong cash position, we are closely monitoring expenses across all elements of our business.

We remain optimistic that despite the current challenging market conditions, we continue to make progress towards achieving our long term goal of generating shareholder value by leveraging a strong technology base into innovative product and service offerings."

Note: Aware's conference call will be broadcast live over the Internet today, February 11, 2009 at 5:00 p.m. Eastern Time. To listen to the call, please go to www.aware.com/ir. The conference call may also be heard by calling 719-325-4832 and referencing the confirmation number 5947596. A replay of the call will be archived on our website after the call.

About Aware

Aware is a leading technology and software supplier for the telecommunications and biom
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