Aether Systems Announces New Board of Directors Nominations.

Business Editors/Hi-Tech Writers

OWINGS MILLS, Md.--(BUSINESS WIRE)--May 29, 2002

Aether Systems, Inc. (Nasdaq:AETH), a leading provider of wireless data products and services, today announced the nomination of four new members to its Board of Directors - James T. Brady, Jack B. Dunn IV, Edward J. Mathias, and Kendra VanderMeulen.

Aether also announced that Board members Frank A. Bonsal, Jr., Devin N. Wenig and Thomas E. Wheeler, will step down from the Board. Elections of new members are subject to shareholder approval. Aether's annual meeting of shareholders, at which Board seats will be finalized, is scheduled for June 28, 2002.

Mr. Brady, the former Secretary of Maryland's Department of Business and Economic Development (DBED), currently serves as Managing Director, Mid-Atlantic, of Ballantrae International, a management-consulting firm.

Mr. Dunn is Chairman of the Board and Chief Executive Officer of FTI Consulting, Inc., a firm with expertise in financial restructuring, litigation consulting and engineering/scientific investigation. Mr. Mathias is currently a Managing Director of The Carlyle Group, a global private equity firm based in Washington, D.C.

Ms. VanderMeulen is the former head of the wireless data business at AT&T Wireless and a long-time veteran of the telecommunications and wireless industry.

"These board changes bring fresh insights, experiences and contacts to Aether as the company continues to evolve," said Chairman and CEO Dave Oros. "Our new board nominees each have extremely impressive backgrounds in building and managing successful companies. They also each bring unique experiences in distinct areas including telecom, wireless data innovation, business management consulting, venture capital, and economic development. We look forward to their operational and strategic guidance as we further establish Aether as the leading provider of wireless data applications for mobile workers. I would also like to sincerely thank our departing board members for their years of valued service. Each has made very meaningful contributions to the company as we have evolved from a start-up to a leader in an emerging market."

Bios of New Aether Board Nominees

James T. Brady

Mr. Brady serves as the Managing Director, Mid-Atlantic, of Ballantrae International, Ltd., a management consulting firm that focuses primarily on business strategy and competitiveness, marketing and sales effectives, and international trade. In addition, he currently serves as a member of the Board of Directors and Chairman of the Audit Committee of Constellation Energy Group, McCormick & Co. and AllFirst Financial Inc; in addition to serving on the boards of several cultural, educational, and social service organizations. Additionally, Mr. Brady served as the Secretary of Maryland's Department of Business and Economic Development from May 1995 through April 1998. Prior to his tenure with the State of Maryland, he was employed by Arthur Andersen for 33 years, the last 17 years as Managing Partner of its Long Island and Baltimore offices.

Jack B. Dunn IV

Mr. Dunn is Chairman of the Board and Chief Executive Officer of FTI Consulting, Inc. (FTI), a multi-disciplined consulting firm with leading practices in the areas of financial restructuring, litigation consulting, and engineering and scientific investigation. Prior to joining FTI, Mr. Dunn spent 10 years with Legg Mason Wood Walker, Inc., a major regional investment-banking firm, where he was managing director, senior vice president, a member of the Board of Directors, and head of its Baltimore-based corporate finance group.

Ed Mathias

Mr. Mathias serves as a Managing Director of The Carlyle Group, a global private equity firm based in Washington, D.C. He was instrumental in the founding of The Carlyle Group and assisted in raising the firm's initial capital. Focusing primarily on venture capital activities, he serves as a member of Investment Committees for Carlyle Venture Partners, Carlyle Europe Venture Partners, Carlyle Japan Venture Partners and Carlyle Asia Venture Partners. Mr. Mathias is also active with numerous other venture capital limited partnerships and is a frequent investor in early stage private companies. Mr. Mathias was with T. Rowe Price Associates, Inc., a major investment management organization, from 1971 to 1993. He served on its Board of Directors and was a member of the Management Committee for over 10 years.

Kendra VanderMeulen

Ms. VanderMeulen is a veteran of the telecommunications industry, and most recently of the wireless data industry. Ms. VanderMeulen joined AT&T Wireless (then McCaw Cellular Communications, Inc.) in 1994 to lead the formation of the wireless data business. She and her team pioneered the Mobile Internet, leading the development of wireless packet data services and their applications. In addition to this assignment, she served as senior vice president of Product Development and Strategy, responsible for definition, development, introduction and management of new mobility products. Prior to joining McCaw's Wireless Data Division, Ms. VanderMeulen served as Chief Operating Officer and President of the Communications Systems Group for Cincinnati Bell Information Systems (now Convergys).

About Aether Systems, Inc.

Aether Systems helps enterprise customers improve efficiency and profitability by providing the services, software and support necessary to extend existing and future applications from the desktop to any wireless device.

Through Aether Fusion(TM), Aether's wireless enabling technology foundation, Aether develops, deploys and manages wireless solutions built on industry standard technology and backed by Aether's expertise in wireless hosting, software and services. Aether provides the worlds of business and government with a single source for reliable, scalable and cost effective wireless solutions.

For more information, please visit www.aethersystems.com.