SoftNet's Aerzone and United Airlines Announce Strategic Alliance to Offer Travelers Broadband Wireless Internet Services

Business Wire, Oct 3, 2000

Business Editors/High Tech and Travel Writers

SAN FRANCISCO--(BUSINESS WIRE)--Oct. 3, 2000

United Air Lines (NYSE:UAL) and Aerzone, a subsidiary of SoftNet Systems, Inc. (Nasdaq:SOFN), today announced that they have signed a letter of intent to deliver Aerzone's wireless broadband Internet services to United customers at its terminals, gates, Red Carpet Clubs, First Class Lounges, and 1K Rooms.

Aerzone announced a similar strategic relationship with Delta Air Lines (NYSE:DAL) in April 2000. Aerzone will be unveiling its service and product launch at investor presentations in New York City today, at 9 a.m. at Radio City Music Hall, and in San Francisco on Oct. 5, at 9 a.m. at the Mark Hopkins Hotel. (For invitations, call Cindy Wyrick at 415/343-2325.)

United will make Aerzone's wireless broadband Internet services available exclusively to its customers in airports throughout North America and select international locations. United operates 50 clubs at 41 domestic and international airports. To support customers using the new United-Aerzone wireless product, United will also leverage Aerzone's other products, such as "Cyber-Concierges" at Aerzone Business Centers. As a part of the agreement, United will gain a minority equity position in Aerzone.

Formerly known as SoftNet Zone, Aerzone offers wireless broadband Internet service in airports and other locations frequented by business travelers. To take advantage of Aerzone's wireless connectivity, customers need only a computing device and a wireless local area network (LAN) card or built in capability that gives them access to Aerzone service in any of its growing number of locations. Dial-up lines are not required.

As a result of the agreement, United customers will be able to connect to the Internet through a high-speed wireless connection, as well as communicate with United through a new United-Aerzone Internet portal.

Airport locations for the new services will be determined over the next few months. The first phase will include United hub airports in Chicago, Denver, Los Angeles, San Francisco, and Washington, D.C.

"Our unique partnership with Aerzone will make it possible for United's customers to take advantage of the newest broadband technologies while waiting for a flight," said Doug Hacker, Executive Vice President and Chief Financial Officer for United Airlines. "The United-Aerzone product will deliver high-speed connectivity to our customers throughout the U.S."

"We're incredibly pleased to have this agreement with United, one of the world's premier airlines," said Dr. Lawrence B. Brilliant, SoftNet's chairman and chief executive officer. "United's agreement with Aerzone demonstrates their commitment to meeting its customers' growing expectation for on-demand access to the Internet and the on-line world, which we can help deliver."

Brilliant added that, with this agreement, Aerzone has partnered with two of the top three U.S. air carriers and its footprint will include most major U.S. airports frequented by the business traveler. "With the United and Delta partnerships, Aerzone will be working with the key airlines at five of the top six U.S. airports," said Brilliant. "We now have the momentum to become the premier wireless service provider for the business traveler."

Aerzone's strategy includes expanding its wireless broadband services worldwide in airports, convention centers, hotels and other business-traveler "hot spots." Aerzone's initial products include Web browsing, personalized broadband content and more, delivered initially through burstable-to-11-megabits per second (Mbps) of wireless connectivity, five times faster than hot spot wireless networks currently in service.

"We offer customers incredible speed as well as ease of use and the freedom of wireless access. Just as important, our approach is technology-agnostic and does not rely on any specific frequency, vendor equipment or commitments to either licensed or unlicensed parts of the spectrum," said Garrett Girvan, Aerzone's president. "And our on-site technical support, through our airport business centers, clearly differentiates us from our competitors and allows us to offer superior service to the demanding business traveler."

As part of the agreement, United will explore Aerzone's products that provide Internet access onboard aircraft, along with other related content services.

Registration for the monthly subscription service will be accepted in the near future on-line, through www.aerzone.com.

About United Air Lines

United Airlines offers nearly 2,400 daily flights to 135 destinations in 26 countries and two U.S. territories. United has been a wireless leader in the airline industry, from its Mobile Airport Chariots and the wide variety of functionality available through WAP-enabled phones. United's Mileage Plus frequent flyer program has more than 40 million enrolled members.

About Aerzone

Aerzone, majority-owned by SoftNet Systems, Inc., operates wireless broadband local area networks and business centers in locations frequented by business professionals, such as major airports, convention centers and hotels. Aerzone has received approximately $60 million in initial funding from its equity partners. United Airlines and Delta Air Lines are Aerzone's lead partners in the travel industry. Cisco and Nokia are Aerzone's preferred wireless technology vendors providing expertise and wireless technology to the venture.