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Novatel Wireless Completes $33.9 Million Financing Round

San Diego, CA - July 26, 2000 - Novatel Wireless, Inc., a leading provider of wireless Internet solutions, today announced the completion of a $33.9 million private placement of the company's Series D Preferred Stock. The financing was led by Aether Systems, which purchased $20 million of the securities. Additional investors included Bank of Montreal Capital Corporation, Cornerstone Equity Investors, LLC, Ironside Venture Partners II L.L.C., GMN Investors L.P., GSM Capital Limited Partnership, Working Ventures Canadian Fund, Inc. and Ventures West Management, Inc.

Novatel Wireless' current suite of products employs Cellular Digital Packet Data (CDPD) technology, a method of sending and receiving secure data transmission over the cellular phone network. CDPD operates at 19.2 kbps, enabling wireless access to personal, corporate and public information through email, corporate intranets and the Internet. The company expects to use the $33.9 million offering proceedings to fund the company's expansion and new product development of high-speed wireless data technologies including CDMA, GSM/GPRS and Ricochet 128 kbps.

"Novatel Wireless is a proven leader in the field of wireless data communications, a dynamic and rapidly growing industry," remarked Mark Rossi, senior managing director of Cornerstone Equity Investors, LLC. "We are proud to support their corporate mission of providing real-time access to critical data."

"Aether and Novatel Wireless have enjoyed a successful relationship, working together to provide leading wireless solutions," said David S. Oros, chairman and chief executive officer of Aether Systems. "As the market for wireless data continues to grow, we hope this investment will help Novatel Wireless and Aether take advantage of the opportunities that await." About Novatel Wireless, Inc.

Novatel Wireless, Inc. is a leader in wireless Internet solutions, headquartered in San Diego, California. The company develops wireless system solutions for mobile and fixed environments enabling wireless access to personal, corporate and public information through email, corporate LANs and the Internet. Novatel Wireless' product portfolio includes the Minstrel® family of Wireless Palmtop Modems, MerlinTM Wireless PC Cards, Sage® Wireless Serial Modems, Lancer 3WTM Wireless 3 Watt Modems and ExpediteTM family of Wireless Embedded Modules. Among the emerging technologies that Novatel Wireless will support in 2000 are Metricom's high-speed 128 kbps Ricochet service and the new GSM/GPRS service at 56 kbps. For more information please visit the Novatel Wireless web site: or call 888-888-9231.

Media Contact: Mona Klausing (858) 320-8803 [email protected]

Investor Contact: Melvin Flowers (858) 812-3415 [email protected]

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