Beihang University and Xybernaut Open Institute for Research and Development.

Business Editors/High-Tech Writers

FAIRFAX, Va. & BEIJING, China--(BUSINESS WIRE)--April 14, 2004

COSTIND Introduction Leads to Programs Concentrating on Mobile/Wearable Computing Technologies, Intellectual Property and Technology Transfer in China

Xybernaut(R) Corporation (NASDAQ:XYBR) and Beihang University (China) today officially dedicated the new Beihang-Xybernaut Research Institute (BXRI).

The BXRI was created to develop mobile/wearable computing solutions for both the greater China marketplace and for other international markets. Researchers will also be further developing new Xybernaut intellectual property (IP) and solutions.

Sun Yuzhen, Secretary General for Beihang's affairs, stated, "We are very pleased to dedicate this institute to Xybernaut, its IP and its vision for the future of computing, communications and intelligent environments. The PRC has dedicated some of its finest technical and business talent, modern research facilities and substantial funding to this program; we have very high expectations that the products and services we develop will find wide acceptance in various governmental agencies and the population at large."

Both currently-available and to-be-developed products and services will be promoted and marketed into China's commercial, industrial and consumer sectors.

Dr. Fang, director of the BXRI, "In addition to RDE, IP generation and go-to-market solutions and strategies for these new products and services, we see both short and long-term opportunities to tailor existing Xybernaut solutions and to localize them. Some of the more obvious near-term efforts will focus on the transportation industry, especially aviation, law enforcement and security, and the medical communities. The BXRI will be able to take advantage of Beihang's very close relations with these sectors to facilitate solutions tailored to their specific needs."

The BXRI has an initial staff of twenty PhD researchers and engineers, as well as a large number of software developers and post-graduate students, business development staff and administrative professionals.

Edward G. Newman, Xybernaut chairman and CEO, added, "Given Beihang's reputation within the PRC and throughout the world, this concrete commitment to Xybernaut and Beihang's endorsement of our technologies and vision is very meaningful. After working closely with Beihang's leaders to reach this level of partnership, it's easy to see why the Committee on Science, Technology, Industry and National Defense (COSTIND) introduced us. I believe the BXRI is a tangible example of how well Xybernaut is positioning itself to participate in the widespread growth now occurring in China and its markets."

About Beihang University

Beihang University (BUAA) was founded in 1952. It was the first university of aeronautical and astronautic science and technology in China. For more than half a century, BUAA, has provided graduate-professionals to China and other nations and has made a great contribution to China's scientific research and economic development.

About COSTIND

COSTIND was established in 1982 by a merger of the Defense Science and Technology Commission (DSTC), the National Defense Industry Office (NDIO), and the Science, Technology, and Equipment Commission (STEC) of the Central Military Commission (CMC). For more information related to COSTIND, please visit the following Web addresses: http://www.nti.org/db/china/costind.htm or http://www.costind.gov.cn/

About Xybernaut

Xybernaut Corporation is the leading provider of wearable/mobile computing hardware, software and services, bringing communications and full-function computing power in a hands-free design to people when and where they need it. Headquartered in Fairfax, Virginia, Xybernaut has offices and subsidiaries in Europe (Germany) and Asia (Japan). Visit the Xybernaut Web site at www.xybernaut.com. Product photos are also available directly from Xybernaut.

Xybernaut, the Xybernaut logo and Mobile Assistant(R) V (MA(R) V) are trademarks or registered trademarks of Xybernaut Corporation in the USA and other countries. All other brand and product names are or may be trademarks of, and are used to identify products or services of, their respective owners.

This press release contains forward-looking statements within the meaning of The Private Securities Litigation Reform Act of 1995 (the "Act"). In particular, when used in the preceding discussion, the words "plan," "confident that," "believe," "scheduled," "expect," or "intend to," and similar conditional expressions are intended to identify forward-looking statements within the meaning of the Act and are subject to the safe harbor created by the Act. Such statements are subject to certain risks and uncertainties and actual results could differ materially from those expressed in any of the forward-looking statements. Such risks and uncertainties include, but are not limited to, market conditions, the availability of components and successful production of the Company's products, general acceptance of the Company's products and technologies, competitive factors, timing, and other risks described in the Company's SEC reports and filings.