U.S. Navy and Aether Team to Put Wireless Technology Into the Palms of Sailors' Hands

Advanced Mobile Computing Solution Enhances Readiness of The U.S.S. McFaul, One of America's Premiere Warships

Aether Systems, Inc. (Nasdaq:AETH) today announced an agreement with the U.S. Navy's Atlantic Fleet Surface Force to provide American sailors with an advanced mobile computing solution that combines the Palm V hand-held computer with advanced synchronization software from Aether. Under the agreement, approximately 150 officers and Sailors aboard the U.S.S. McFaul, a premier guided missile destroyer based in Norfolk, will use hand-held devices powered by ScoutWare(TM), Aether's industry-standard synchronization and device management technology, to gain instant access to e-mail and scheduling information anytime, and from anywhere, on the ship.

"This is what it's all about -- putting technology into the hands of Sailors to not only increase combat readiness but to enhance their quality of service. As we build the Navy of the future, we have to look for new and innovative ways of doing business and I think this is a significant step in building the 21st century Navy," said VADM Henry C. Giffin, III, Commander, Naval Surface Force, U.S. Atlantic Fleet.

Since January, thirty officers serving on the U.S.S. McFaul have successfully used Palm V devices equipped with Aether's ScoutSync technology to access key data from shipboard databases via cradles Beginning today, the Navy will deploy 115 additional devices plus 32 infrared ports from Clarinet Systems aboard the McFaul, offering Sailors the ability to instantly send and receive e-mail, leverage applications for training and evaluations, consolidate checklists and databases, and coordinate daily and weekly schedules. In addition, as the server-based middleware in the solution, Aether's ScoutWare will enable the crew to build additional applications that access backend systems.

ScoutSync is the key component of a family of data synchronization and device management tools known as ScoutWare. Specifically, ScoutSync consists of server based middleware technology offering the following capabilities:

-- Rapid fire message capabilities resulting in a 50 percent faster delivery time;

-- Industry first functions that enable administrators to collect device and inventory information from a central administrative source;

-- Easy to read displays relaying battery life and memory status, as well as application and database information;

-- Local or remote device back-up and restoration capabilities.

The U.S.S. McFaul solution integrates Aether's ScoutSync and the Palm OS platform with 32 infrared ports from Clarinet Systems, to seamlessly connect and facilitate transmission of data in a wireless environment. For a mobile military force like the Navy, this new technology will give Sailors more flexibility and support faster response times, ultimately improving combat readiness.

The U.S.S. McFaul is one of the newest ships in the Navy, staffed by over 330 crew members, and providing sustained combat operations for surface, air and undersea operations. The Naval warship is 550 feet long and is equipped with a variety of weaponry, including Tomahawk missiles as well as the latest anti-submarine warfare system. The U.S.S. McFaul is equipped with extensive community services, including dining, banking, laundry, post office and shopping facilities.

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