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Aether Capital Leads Investment in Strategy.com By Roy Mark October 20, 2000 Aether Capital, the venture division of Aether Systems, is leading a $52.75 million round of convertible preferred stock financing for Strategy.com, a subsidiary of MicroStrategy. Inc. with a total $25 million investment. Aether has already invested $14.99 million in Strategy.com, and will invest an additional $10 million subject to the satisfaction of certain conditions, including the expiration of the Hart-Scott-Rodino waiting period. Upon completion of this additional Aether Capital investment, this round of financing will represent approximately 15 percent of the outstanding equity of the Vienna, Va.-based Strategy.com on an as converted, diluted basis. The investment will facilitate Strategy.com's development and delivery of customized information to wireless devices for individual and corporate users, a service that Aether will in turn offer to its customers. The Aether Capital investment is part of a broader alliance between Aether and MicroStrategy that includes developing a new product, MicroStrategy 7M, designed to combine Aether's wireless technology with the functionality and performance of the MicroStrategy 7 platform to deliver personalized, intelligent information services to a full range of wireless devices. Dave Oros, chairman and chief executive officer of the Owings Mills, Md.-based Aether, will also join the Strategy.com board of directors. "Aether represents a strong alliance for Strategy.com, as they share Strategy.com's mission for capitalizing on the convergence of the Internet and wireless technologies," said John Sidgmore, chairman of the board of Strategy.com. "Dave Oros has an impressive track record, and we are pleased to have him join the board of directors of Strategy.com. Aether has achieved tremendous success, and they should be instrumental in helping us execute our business plan." MicroStrategy and Aether envision that MicroStrategy 7M capabilities will include features to enable companies to develop more profitable, trusted relationships with customers. For an airline for example, if a flight were delayed or cancelled, the airline would be able to scan its customer-centric database and determine which customers are impacted. Then, with the permission of the customer, the airline could notify them via their preferred wireless device about the news and immediately re-book them on another flight. "Aether's alliance with MicroStrategy provides an outstanding opportunity to extend our wireless technology and services to the leading global corporations that have turned to MicroStrategy to benefit from the company's Intelligent E-Business Software," Oros said. "I am pleased to announce Aether's investment in Strategy.com and look forward to joining the board. Aether sees tremendous potential in Strategy.com's customized content delivery and looks forward to offering these services to our current and future clients."