CSX Technology Selects Xybernaut Atigo Mobile/Wearable Computers for Event Reporting Applications; Leading Rail Operator Takes Delivery of Atigo Computers.

Business Editors

FAIRFAX, Va.--(BUSINESS WIRE)--Sept. 3, 2003

CSX Technology, Inc. the technology subsidiary of CSX Corporation (NYSE: CSX), owner of the largest rail network in the eastern United States, and Xybernaut(R) Corporation (Nasdaq: XYBR), a leading developer of wearable/mobile computing solutions, today announced that CSX Technology has purchased and deployed Xybernaut Atigo(R) mobile/wearable computers.

The initial units of the customized order have been purchased by CSX Technology for event reporting activities related to its affiliate's rail operations in the eastern U.S.

Revenue associated with this deployment is primarily recognized in the quarters during which the products are delivered to customers. At the request of CSX Technology, Xybernaut has accelerated the delivery schedule and expects to complete initial shipments by the end of the fourth quarter 2003. Additional hardware and services revenue related to this order is also expected in the fourth quarter of 2003.

Xybernaut also is pleased to announce that CSX Technology has agreed to participate as a member of the Xybernaut Customer Advisory Board (CAB). The Xybernaut CAB, which was formed in 2000, includes executives from several prominent international Xybernaut customers. The Xybernaut CAB was assembled to foster continued guidance and success in development of mobile, wearable and wireless computing technologies to meet the common and unique needs of various industry sectors.

Atigo products can be built-to-order to meet specific customer requirements. Similar to Atigo customers announced earlier this year, CSX Technology is taking advantage of customized Atigo features. These customization features include use of the customer's logo for branding, unique wearability accessories, and custom software configurations.

"The order from CSX adds to our current successes in the transportation industry, which is just one of the fast-growing market segments for the Atigo product family. The flexibility and versatility of the solution as a mobile computing platform was noted as one of our key differentiators," said Edward G. Newman, chairman and CEO of Xybernaut.

"Since first introducing Atigo earlier this year, we have won major new customers in very different business sectors -- including retail, government, military, first responder and transportation -- each demanding unique and customized mobile computing solutions," Newman added. "We are confident that as Xybernaut demonstrates that the Atigo is, indeed, more flexible, scalable and powerful than the typical mobile device, we will win more customers who are intent on boosting productivity of their respective mobile work forces."

The Atigo product family is available directly from Xybernaut and through Team Xybernaut(tm) -- the Company's community of more than 100 value added resellers (VARs) and systems integrators. Pricing for Atigo hardware starts at $1,795 depending on the configuration and accessory options chosen by the customer. Specific pricing details and price quotes can be obtained directly from Xybernaut by calling toll-free 1-888-992-3777.

About CSX

CSX Corporation, based in Jacksonville, Fla., owns the largest rail network in the eastern United States. CSX Transportation and its 34,000 employees provide rail transportation services over a 23,000 route-mile network in 23 states, the District of Columbia and two Canadian provinces. CSX also provides intermodal and global container terminal operations through other subsidiaries. More information about the company is available at http://www.csx.com.

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 Xybernaut's Web site at www.xybernaut.com. Product photos are also available directly from Xybernaut.

Xybernaut, the Xybernaut logo, Atigo(R) 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.