2005 ANNUAL REPORT
A W A R E , I N C .
A W A R E , I N C .
A W A R E , I N C .
The DSL industry has entered a new phase of deployments as telephone companies expand
the reach of their service offerings to include data, voice, and television. HDTV over
VDSL2 has become a near-term goal in several regions, marking the true transformation
of phone companies into content providers.
In 2005, our licensing business successfully launched customer chipsets based upon
our StratiPHY2+TM ADSL2/2+ technology in France, where customers now receive high-
speed Internet access and IPTV. In 2006, we expect StratiPHY3TM to benefi t from the rapid
emergence of the VDSL2 standard, enabling much higher speeds and value-added services.
In Germany, Deutsche Telekom has lined up an impressive offering of entertainment ser-
vices, including HD broadcast of soccer games, using a 50Mbps VDSL2 network.
There were 138.8 million DSL subscribers worldwide at the end of 2005, with Europe and
Asia Pacifi c leading with market shares of 37% and 41% respectively1. The move by phone
companies to value-added services is fueling a rapid transition to VDSL2. Forecasts for
VDSL aggregation ports, the devices that deliver VDSL service from points in the phone
company network, present an opportunity for exponential growth over the coming years2.
The transition to new standards also forms the foundation for new opportunities for
our DSL test and diagnostics hardware and software products.
In response to rapid growth in new areas of biometrics, 2005 saw an increased demand
for our software for biometric enrollment systems and electronic passport systems.
12005 Total Subscribers by Region
ROW
6%
North America
16%
Asia Pacifi c
41%
Europe
37%
Source: Point Topic
2DSL Aggregation Ports
(Annual Net Additions)
VDSL
ADSL
2005*
2006
2007
2008
2009
* 2005 Actual
Source: Infonetics Research 02/06
Port Adds
(in millions)
250
200
150
100
50
0
C o r p o r a t e I n f o r m a t i o n
BOARD OF DIRECTORS
LEGAL COUNSEL
John K. Kerr
Chairman of the Board
Aware, Inc.
Michael A. Tzannes, Ph.D.
Chief Executive Offi cer
Aware, Inc.
Edmund C. Reiter, Ph.D.
President
Aware, Inc.
Frederick D. D’Alessio
General Partner
Capitol Management Partners
G. David Forney, Jr., Sc.D.
Adjunct Professor, MIT
Vice President (retired),
Motorola, Inc.
Adrian F. Kruse, C.P.A., J.D.
Audit Partner (retired)
Ernst & Young LLP
OFFICERS
Michael A. Tzannes, Ph.D.
Chief Executive Offi cer
Edmund C. Reiter, Ph.D.
President
Robert J. Weiskopf
Chief Financial Offi cer
Richard W. Gross, Ph.D.
Senior Vice President
Engineering
Foley Hoag LLP
Boston, MA
INDEPENDENT ACCOUNTANTS
PricewaterhouseCoopers LLP
Boston, MA
TRANSFER AGENT
Computershare Trust Company N.A.
PO Box 43078
Providence, RI 02940-3078
1-877-282-1168
www.computershare.com
ANNUAL MEETING
Wednesday, 10:00 a.m.
May 24, 2006
Renaissance Bedford Hotel
Bedford, MA
STOCK LISTING
NASDAQ: AWRE
CORPORATE HEADQUARTERS
40 Middlesex Turnpike
Bedford, MA 01730
(781) 276-4000
WEST COAST LOCATION
3685 Mt. Diablo Boulevard
Lafayette, CA 94549
CONTACT INFORMATION
Investor Relations
Aware, Inc.
40 Middlesex Turnpike
Bedford, MA 01730-1432 USA
(781) 276-4000
www.aware.com
A W A R E , I N C . 2 0 0 5 A N N U A L R E P O R T
A W A R E , I N C . 2 0 0 5 A N N U A L R E P O R T
A W A R E , I N C .
A W A R E , I N C .
The DSL industry has entered a new phase of deployments as telephone companies expand
the reach of their service offerings to include data, voice, and television. HDTV over
VDSL2 has become a near-term goal in several regions, marking the true transformation
of phone companies into content providers.
In 2005, our licensing business successfully launched customer chipsets based upon
our StratiPHY2+TM ADSL2/2+ technology in France, where customers now receive high-
speed Internet access and IPTV. In 2006, we expect StratiPHY3TM to benefi t from the rapid
emergence of the VDSL2 standard, enabling much higher speeds and value-added services.
In Germany, Deutsche Telekom has lined up an impressive offering of entertainment ser-
vices, including HD broadcast of soccer games, using a 50Mbps VDSL2 network.
There were 138.8 million DSL subscribers worldwide at the end of 2005, with Europe and
Asia Pacifi c leading with market shares of 37% and 41% respectively1. The move by phone
companies to value-added services is fueling a rapid transition to VDSL2. Forecasts for
VDSL aggregation ports, the devices that deliver VDSL service from points in the phone
company network, present an opportunity for exponential growth over the coming years2.
The transition to new standards also forms the foundation for new opportunities for
our DSL test and diagnostics hardware and software products.
In response to rapid growth in new areas of biometrics, 2005 saw an increased demand
for our software for biometric enrollment systems and electronic passport systems.
12005 Total Subscribers by Region
ROW
6%
North America
16%
Asia Pacifi c
41%
Europe
37%
Source: Point Topic
2DSL Aggregation Ports
(Annual Net Additions)
VDSL
ADSL
2005*
2006
2007
2008
2009
* 2005 Actual
Source: Infonetics Research 02/06
Port Adds
(in millions)
250
200
150
100
50
0
C o r p o r a t e I n f o r m a t i o n
BOARD OF DIRECTORS
LEGAL COUNSEL
John K. Kerr
Chairman of the Board
Aware, Inc.
Michael A. Tzannes, Ph.D.
Chief Executive Offi cer
Aware, Inc.
Edmund C. Reiter, Ph.D.
President
Aware, Inc.
Frederick D. D’Alessio
General Partner
Capitol Management Partners
G. David Forney, Jr., Sc.D.
Adjunct Professor, MIT
Vice President (retired),
Motorola, Inc.
Adrian F. Kruse, C.P.A., J.D.
Audit Partner (retired)
Ernst & Young LLP
OFFICERS
Michael A. Tzannes, Ph.D.
Chief Executive Offi cer
Edmund C. Reiter, Ph.D.
President
Robert J. Weiskopf
Chief Financial Offi cer
Richard W. Gross, Ph.D.
Senior Vice President
Engineering
Foley Hoag LLP
Boston, MA
INDEPENDENT ACCOUNTANTS
PricewaterhouseCoopers LLP
Boston, MA
TRANSFER AGENT
Computershare Trust Company N.A.
PO Box 43078
Providence, RI 02940-3078
1-877-282-1168
www.computershare.com
ANNUAL MEETING
Wednesday, 10:00 a.m.
May 24, 2006
Renaissance Bedford Hotel
Bedford, MA
STOCK LISTING
NASDAQ: AWRE
CORPORATE HEADQUARTERS
40 Middlesex Turnpike
Bedford, MA 01730
(781) 276-4000
WEST COAST LOCATION
3685 Mt. Diablo Boulevard
Lafayette, CA 94549
CONTACT INFORMATION
Investor Relations
Aware, Inc.
40 Middlesex Turnpike
Bedford, MA 01730-1432 USA
(781) 276-4000
www.aware.com
A W A R E , I N C . 2 0 0 5 A N N U A L R E P O R T
A W A R E , I N C . 2 0 0 5 A N N U A L R E P O R T
2005 ANNUAL REPORT
A W A R E , I N C .