Exhibit 99.1
Aether Systems To Acquire Motient's Transportation Division;
$45 Million Deal Brings New Technology, Products & Services
Acquisition and Long-Term Reseller Agreement Expands Aether's Presence in
Transportation Industry, Allows Motient to Focus on Core Business
OWINGS MILLS, Md. & RESTON, Va. - September 20, 2000 - Aether Systems, Inc.
(Nasdaq: AETH), a leading provider of wireless data products and services, and
Motient Corp. (Nasdaq: MTNT) today announced that Aether has agreed to acquire
Motient's retail transportation business unit for $45 million plus an additional
sum of up to $22.5 million based on revenue and other incentive targets in 2001.
The deal bolsters Aether's presence in the transportation industry by providing
entry into the long-haul and less-than-truck-load segment of the market with a
significant client base and a multi-mode product that provides vehicle
information via land-based and satellite communications. Under the terms of the
agreement, Aether will obtain all of Motient's retail customers in the
transportation sector excluding package delivery and courier services. Aether
will also acquire Motient's transportation specific products such as Pro 2000,
the first generation multimode solution and MobileMax2, the second generation
solution.
Concurrent with the acquisition agreement, Aether has also agreed to a long-term
reseller arrangement of Motient satellite and terrestrial network services for
$25 million over three years. This arrangement will allow Aether to offer mobile
data services over both land-based and satellite networks, providing the optimum
possible coverage at competitive prices.
Motient's leading edge software solutions provide monitoring of driver
performance, vehicle fault codes and state-line crossing. On-board equipment
provides messaging, pres-set forms for load status, dispatch updates, routing,
estimated times of arrival and emergency distress calls. In all, Motient has
about 200 transportation customers and more than 15,000 subscribers, all of
which will be absorbed by Aether.
"This acquisition brings Aether into the long-haul and less-than-truck-load
industry with a premier wireless product," said Aether Chairman & CEO David S.
Oros. "By bringing the transportation products and assets of Motient's retail
transportation division to Aether, we are executing on our plan to enter new
vertical markets and build them through merger and acquisition. Additionally, we
are adding new technology, engineering bandwidth and products that will
complement Aether's existing resources."
The closing of the acquisition will be contingent upon regulatory approvals,
approval of Motient's bank lenders and shareholder guarantors and other
customary closing conditions. The definitive agreement is expected to close
within the next four weeks. Motient's transportation division includes about 100
employees, with most based in Reston, Va.
"This transaction enables Motient to concentrate its resources on the burgeoning
wireless email segment of our business and turns the transportation products
over to a powerhouse company with plans to fund dramatic improvements and growth
in that business sector," said Walter V. Purnell. Jr., Motient's President and
CEO. "It also provides Motient with additional liquidity to accelerate growth in
our eLink offerings. Through the reseller agreements, Aether becomes our largest
wholesale customer and our second largest customer. We look forward to a
long-term, mutually beneficial partnership with this acknowledged industry
leader."
About Motient
Motient (www.motient.com) owns and operates an integrated terrestrial/satellite
network and provides a wide range of two-way mobile and Internet communications
services principally to business-to-business customers and enterprises. The
company provides its industry-leading eLink two-way wireless email service to
customers accessing email through corporate servers, Internet Service Provider
(ISP) and Mail Service Provider (MSP) accounts, and paging network suppliers.
Motient serves a variety of markets including mobile professionals, telemetry,
transportation, field service, and nationwide voice dispatch offering coverage
to all 50 states, Puerto Rico, the U.S. Virgin Islands, and hundreds of miles of
U. S. coastal waters.
About Aether Systems, Inc.
Aether Systems, Inc. is a leading provider of wireless and mobile data products
and services allowing real-time communications and transactions across a full
range of devices and networks. Using its engineering expertise, the ScoutWareTM
family of products including the Aether Intelligent Messaging (AIM) software
platform, and its network operations and customer care center, Aether seeks to
provide comprehensive, technology-independent wireless and mobile computing
solutions. Aether develops and delivers wireless data services across a variety
of industries and market segments in the United States and internationally.
Please visit our web page at http://www.aethersystems.com/
# # #
Factors that could cause actual results to differ materially from those in the
forward-looking statements in this news release are described in Motient
(formerly American Mobile Satellite) Corporation's registration statement on
Form S-3 (File No. 333-42104) and in Motient (formerly American Mobile's) annual
report on Form 10-K for the year ended December 31, 1999 and its other periodic
filings and reports with the Securities and Exchange Commission. Copies of such
reports and filings are available upon request from Motient Corporation's
Investor Relations Department.
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 and Motient's retail transportation
division to successfully integrate their technologies and business, the ability
to offer services on a cost-effective basis and market acceptance of products
developed by Aether. These risks and other risk factors are described in
Aether's report on Form 10-K with respect to the fiscal year ending December 31,
1999 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.
Contacts: David Wonderling Melissa Maughan
Motient Hill & Knowlton, for Motient
703-716-6375 202-944-5138
[email protected] [email protected]
Greg Abel Erich Shea
Aether Systems The Weber Group for Aether
410-654-6400 x5189 703-351-5605
[email protected] [email protected]
mailto:[email protected]
