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

Business Editors, Technology Writers

OWINGS MILLS, Md. and RESTON, Va.--(BUSINESS WIRE)--Feb. 24, 2000

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.

About Aether

Aether Systems, Inc. is a leading provider of wireless and mobile data services allowing real-time communications and transactions across a full range of devices and networks. Using its engineering expertise, its Aether Intelligent Messaging (AIM) software platform, its ScoutWare family of products (upon completion of its acquisition of Riverbed Technologies, Inc.) and its customer service and network operations center, Aether Systems seeks to provide comprehensive, technology-independent wireless and mobile computing solutions. Aether offers a broad range of wireless data services, including real-time stock quotes and financial data, stock trading, Internet access and e-mail. Headquartered in Owings Mills, Md., Aether also has offices in New York, Illinois and Florida. Aether is a joint principal owner, along with 3Com Corp., of Omnisky, Inc., a wireless Internet service provider based in Palo Alto, Calif. Aether headquarters are located at 11460 Cronridge Dr., Owings Mills, MD 21117. For more information, visit www.aethersystems.com (http://www.aethersystems.com/).

About Nextel Communications, Inc.

Nextel Communications Inc., based in Reston, Virginia, is a leading provider of fully integrated wireless communications services and has built the largest guaranteed all-digital wireless network across the United States. Nextel and Nextel Partners, Inc., currently serve 94 of the top 100 U.S. markets. In addition, through Nextel International, Inc., Nextel has wireless operations and investments in Canada, Mexico, Argentina, Brazil, the Philippines, Peru, Japan and Shanghai, China.

This press release includes forward-looking statements based on our 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 extent to which Aether and Nextel pursue the initiatives described above, the continued development and customer acceptance of the technology to be developed and the ability to offer it on a cost effective basis. These risks and other risk factors are described under the caption, "Risk Factors" in Aether's most recently filed prospectus with the Securities and Exchange Commission. Aether undertakes no obligation to update the forward-looking statements contained in this press release.