Aether Systems and Nextel Form Alliance To Develop Wireless Data and Wireless Web Solutions

    Nextel To Utilize Aether's Enterprise Data Wireless Center; Aether To Benefit From Nextel's Strong  Business-to-Business Expertise

    Aether Systems, Inc. (NASDAQ:AETH) a leading provider of wireless data services and systems and Nextel Communications, Inc. (NASDAQ:NXTL), a leading provider of wireless communications services, today announced an alliance to provide wireless Internet and wireless data solutions to enterprise customers. The alliance will focus on a number of joint activities designed to enhance the ability of both companies to deliver complete, customized wireless data solutions.

    Nextel and Aether intend to jointly develop and market applications for companies in a variety of industries, including financial services, transportation and mobile workforce automation. These applications will be hosted and supported by Aether's Enterprise Data Wireless Center and are expected to utilize the Aether Intelligent Messaging (AIM) middleware platform, which enables highly efficient, secure and reliable communications for wireless data services. In addition, the two companies intend to work jointly with Nextel's enterprise customers to provide customized end-to-end solutions that wirelessly enable mobile workers. These initiatives will allow Nextel customers to take advantage of Aether's experienced team of wireless data software developers and Aether's full range of end-user customer service and technical support.

    "We are very excited about this alliance with Aether," said Tom Kelly, executive vice president marketing and strategic planning, Nextel Communications. "Aether brings the ability to provide complete wireless data solutions to its customers. Together we can provide clients with a very powerful and effective combination of wireless voice and data solutions."

    Under the terms of the alliance, Nextel and Aether intend to develop applications that allow Nextel customers to gain access to time-sensitive data in two distinct and powerful ways: First, applications will be available through WAP (Wireless Application Protocol) -enabled Nextel phones; Second, Nextel customers will be able to access wireless data by using a variety of mobile computing devices including those that operate on the Palm and Windows CE platforms, simply by connecting a cable between the device and their Nextel phone.

    "Aether is thrilled to have the opportunity to team with Nextel to develop a new suite of wireless data services," said George Davis, Chief Operating Officer of Aether Systems. "Nextel has clearly distinguished itself with a strong business-to-business customer base, an average revenue per unit that is among the best in the industry, and a host of key corporate customers. This alliance with Nextel will bring Aether closer to an important user community."

    Under the terms of the alliance, Aether and Nextel will also develop joint sales and marketing activities to bring new services to current and future clients.

    The alliance is non binding, but states that both parties will pursue the initiatives described in the agreement in good faith for a specified period of time.

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