  We analyze properties of the unique nova-like star AE Aquarii identified with
a close binary system containing a red dwarf and a very fast rotating
magnetized white dwarf. It cannot be assigned to any of the three commonly
adopted sub-classes of Cataclysmic Variables: Polars, Intermediate Polars, and
Accreting non-magnetized White Dwarfs. Our study has shown that the white dwarf
in AE Aqr is in the ejector state and its dipole magnetic moment is $\mu ~ 1.5
\times 10^{34} G cm^3$. It switched into this state due to intensive mass
exchange between the system components during a previous epoch. A high rate of
disk accretion onto the white dwarf surface resulted in temporary screening of
its magnetic field and spin-up of the white dwarf to its present spin period.
Transition of the white dwarf to the ejector state had occurred at a final
stage of the spin-up epoch as its magnetic field emerged from the accreted
plasma due to diffusion. In the frame of this scenario AE Aqr represents a
missing link in the chain of Polars evolution and the white dwarf resembles a
recycled pulsar.
