Bell Canada Sets New Trend in Technology Fashion With Purchase of Xybernaut Wearable Computers; Time Savings of Nearly One Hour Per Day Per Technician Realized.

Business Editors/Hi-Tech Writers

TORONTO--(BUSINESS WIRE)--Aug. 2, 2001

Bell Canada and Xybernaut Corporation (Nasdaq:XYBR) today announced the results of the world's first large-scale market trial of wearable computers and the outfitting of 300 Bell Canada field service technicians with the Mobile Assistant(R) (MA(R)) V.

As a result of a successful market trial, Bell Canada is purchasing 300 of the MA V, the latest version of Xybernaut's wearable computers. The devices will eventually replace the existing IBM ThinkPad laptops that are used in the field by approximately 10,000 Bell Canada technicians.

The MA V combines next generation mobile computing with next generation wireless technology, enabling mobile workers to perform technical functions on-the-go. The wearable computer can be worn as a vest or belt and is equipped with either a Head-mounted or a Flat Panel Display Screen for viewing images.

The market trial, which recently concluded, revealed that wearable PC's significantly improve mobility and connectivity, resulting in time savings and increased productivity. Trial participants saved almost one hour per day using the MA(R) IV, an earlier version of the fully wireless computers, which can also connect a user to the Internet and provide a wireless voice connection.

The trial, managed by Bell Canada's Mobile Communications Centre (MCC), began in October 2000 and included outfitting 19 Bell Canada technicians from across the company with the MA IV. Bell tested the wearable PCs in all weather and work conditions that a field technician typically encounters.

"To say that Bell Canada is extremely pleased with the results is an understatement - we had to literally beg trial participants to return the units," said Brad Chitty, General Manager, Mobile Communications Services, Bell Canada. "Wearable PCs have performed extremely well in a number of environments, saving us time on repair calls and resulting in better customer service. As a company that has a history of adopting new technology, it's exciting to have our own field service technicians leading the way."

"The Mobile Assistant provides mobile workers with reliable, accessible voice and data communications in a brand new way," said Edward G. Newman, Chairman, President and CEO of Xybernaut. "In addition to freeing up technicians' hands to do more work, the device also gives them immediate access to the information they need no matter where they are. Bell Canada's decision to purchase the wearable PCs demonstrates that these devices do translate into greater efficiencies and a satisfied workforce."

Results from the market trial revealed:

-- Bell Canada service technicians found the technology easy to use and a
valuable tool.

-- Time savings resulting from improved portability and reduced computing time
was more than 50 minutes per day per technician.

-- Total portability reduced the need to return to vehicles to boot up laptops
and enter data.

-- The Mobile Assistant(R)'s fully wireless functionality also reduced
computing time significantly.

-- The daylight readable screen contributed to a reduction in computing time
and proved to be superior when viewing plant schematic diagrams.

-- A potential cost savings through greater connectivity, in addition to
productivity gains.

-- Constant access to portable information eliminated the need for paper
information.

About Bell Canada

Bell Canada, Canada's national leader for communications in the Internet world, provides connectivity to residential and business customers through wired and wireless voice and data communications, high speed and wireless Internet access, IP-broadband services, e-business solutions, local and long distance phone and directory services.

Bell Canada is owned by BCE Inc of Montreal (80%) and by SBC Communications Inc. of San Antonio, Texas (20%). For more information please visit www.bell.ca

About Xybernaut Corporation:

Xybernaut Corporation is the leading provider of wearable 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. The Mobile Assistant(R) V (MA(R) V), Xybernaut(R)'s patented wearable PC, runs all major PC operating systems, including Windows(R) 98/2000/NT, Linux and SCO Unix.

With the MA V, customers can realize immediate savings in maintenance, repair, diagnosis, inspection, inventory control and data collection in a broad spectrum of industries, including manufacturing, distribution, utilities, government and transportation. Xybernaut also provides hyper linking, multimedia authoring tools, project management, asset management and speech software toolkits.

Headquartered in Fairfax, Virginia, Xybernaut has offices and subsidiaries in Europe (Germany) and Asia (Japan). Visit Xybernaut's web site at www.xybernaut.com.

MS-DOS, Windows and Windows NT are registered trademarks of Microsoft Corporation

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.

NOTE TO PHOTO EDITORS: A photo of a technician using the wearable PC is available on the Canadian Press Photo Network.