Aether Systems and America Online Announce Strategic Alliance to Develop and Market Wireless Solutions to Small and Medium Businesses.

Business Editors

DULLES, Virg. and OWINGS MILLS, Md.--(BUSINESS WIRE)--Nov. 6, 2001

Aether Fusion(TM) Technology to Extend AOL's Netbusiness, Email and Instant Messaging to Wireless Platforms for Small and Medium Enterprises

Aether to Promote Its Products and Services Across AOL Time Warner Brands

AOL To Make Investment in Aether Systems

America Online, Inc., the world's leading interactive services company, and Aether Systems, Inc. (Nasdaq: AETH), a leading provider of wireless data products and services, today announced a strategic wireless technology and marketing alliance under which the companies will develop and market targeted Web and wireless services for the small and medium enterprise (SME) market.

Under the agreement, America Online will allow Aether to incorporate AOL E-mail, AOL Instant Messaging (AIM)(TM), and other AOL content into Aether's wireless products and services offered to the small and medium sized business market. Through the use of its Aether Fusion technology, Aether will extend AOL's Netbusiness small business solutions (www.netbusiness.netscape.com) to wireless platforms, such as PDAs and phones. The companies will explore co-branding opportunities for these initiatives. Aether plans to promote these new products, as well as Aether's current and future wireless data products and services, across the family of America Online interactive brands as well as AOL Time Warner's broad range of media properties. In addition, America Online will make a minority investment in Aether Systems.

Netbusiness enables owners of small businesses to better manage both their operations and everyday lives -- offering easy-to-use and fully customizable information resources, productivity and communications tools, and a free online presence to reach new customers. The combination of America Online's easy-to-use and convenient applications with Aether's wireless business tools will enable enterprises to connect with prospective customers and access important information via mobile devices.

Barry Schuler, Chairman and CEO, America Online said, "We're pleased to announce this alliance with Aether systems. The combination of AOL's hallmark easy-to-use interactive features and Aether's unique and proven ability to deliver end-to end wireless solutions will allow us to provide small and medium business users with a compelling wireless solution to meet the needs of their business. We also look forward to promoting Aether's services across America Online's interactive brands as well as various AOL Time Warner properties, demonstrating once again how we can effectively meet a sophisticated company's advertising and marketing needs."

Dave Oros, Chairman and Chief Executive Officer, Aether Systems, said: "This alliance with America Online will help Aether aggressively address the growing wireless and mobile needs of the small-to-medium enterprise market, and we are very pleased to be a wireless partner to the world's leading interactive services provider. Together, we will be able to offer a new suite of services to help these enterprises succeed.

Netbusiness has proven to be a very valuable offering and we look forward to extending its functionality and convenience to wireless platforms through Aether Fusion."

According to Cahners In-Stat Group, small businesses spent nearly $48 billion on communication services and equipment in 2000. Total market spending is expected to grow roughly 17% annually, reaching more than $80 billion in 2004. A key component of this growth is expected to be the continued adoption of wireless services and equipment. According to the US Small Business Administration (SBA), more than half of the private work force is employed in one of the over 28 million small businesses nationwide with fewer than 10 employees. Together, those small businesses account for 47% of all US sales. By 2002, the SBA predicts, fully 85% of these will conduct all or part of their business over the World Wide Web.

About Aether Systems

Aether Systems helps enterprise customers improve efficiency and profitability by providing the services, software and support necessary to extend existing and future business 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 business world with a single-source for reliable, scalable and cost effective wireless solutions. For more information, please visit www.aethersystems.com.

About America Online, Inc.

America Online, Inc. is a wholly owned subsidiary of AOL Time Warner, Inc. (NYSE: AOL). Based in Dulles, Virginia, America Online is the world's leader in interactive services, Web brands, Internet technologies and e-commerce services.

This press release includes forward-looking statements based on current expectations and projections about future events. These forward-looking statements are subject to a number of risks, uncertainties and assumptions about Aether that could cause actual results to differ materially from those in such forward-looking statements. Potential risks and uncertainties include, but are not limited to, the ability of Aether to successfully develop the products and services described in this release. These risks and other risk factors are described in Aether's report on Form 10-K with respect to the fiscal year ending Dec. 31, 2000 and other documents filed with the Securities and Exchange Commission. Aether undertakes no obligation to update the forward-looking statements contained in this press release.