Aether Systems Announces Acquisition of Cerulean Technology

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NEWS FLASH 2000 - 29 (August 2000)
(Updated on August 23, 2000)

ACQUISITIONS, MERGERS & AGREEMENTS

Aether Systems Announces Acquisition of Cerulean Technology

Aether Systems Inc. announced that it has signed a letter of intent to acquire Cerulean Technology, Inc. for $150 million, with up to 50 percent of which may be payable in Aether stock.

The acquisition allows Aether to enter new vertical markets in the public sector by delivering advanced wireless products and services to the rapidly expanding "mobile government" marketplace. A movement towards a mobile government is being fuelled by not only the early adopters such as public safety agencies but also other government sectors such as public works and municipal services and utilities.

The merged company will address the needs of the mobile government marketplace, by leveraging Aether’s mobile and wireless technology products along with Cerulean’s wireless mobile applications. Customers will benefit from the following:

A single, extensible wireless application platform that can be used across multiple government markets supporting any application, wireless infrastructure, or device.
Aether’s wireless data technology including its Scoutware family of software products combined with Cerulean’s wireless public safety and government applications.
The ability to provide customers with end-to-end wireless application solutions based on purchase or hosted service models.
Integration of Cerulean’s public safety and government applications with Aether’s wireless Web applications such as communication services and industry-focused content.

For more information: www.aethersystems.com/press/print/pr081400ap.htm

Mobileinfo Comments and Advisory: Public Safety is a major (multi-billion dollar) vertical application in mobile computing. In fact, it was perhaps the first major industry that adopted mobile computing in early 80s with Motorola's MDTs and private wireless networks. Most public safety agencies are going through second generation systems now. This marriage between Aether and Cerulean is a good one because it will introduce the third generation of mobile computing in public safety. We think that the two companies understand the unique business and technology issues in public safety. It is our belief that public safety agency solutions of future will be more based on public shared wireless networks with strong security features, dedicated QOS (quality of service with higher priority for mission-critical applications), cheaper ruggedized handhelds, web-based user interface, GPS, 911-wireless-call-location identification, integrated CAD/RMS and integrated voice/data support. How will APCO25 and Tetra standards for public safety fit in with the future vision that Aether/Cerulean has for this unique industry? We would like to hear!

Note: This news release may contain forward-looking statements. Readers should take appropriate caution in developing plans utilizing these products, services and technology architectures.

All trademarks used in this summary are the property of their respective owners.

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