XYBERNAUT CONTRACTS WITH IBM TO DEVELOP WEARABLE COMPUTERS.

Xybernaut Corp. (Nasdaq: XYBR), the leader in wearable computing and communications solutions, announced it has signed an agreement with IBM (NYSE: IBM) to design, develop and manufacture the computer portion of Xybernaut's next generation of wearable computer systems.

"We are excited about providing a key part of Xybernaut's next generation wearable computer system and look forward to developing this market," stated Samuel Prabhakar, IBM's worldwide development executive for IBM's Purpose Optimized Device Solutions Group. "IBM is committed to taking a leadership position in delivering pervasive computing solutions, including devices that support an IBM Edge of Network business strategy to simplify computing for businesses and individuals, making it easier for them to do e-business."

"This agreement takes advantage of Xybernaut's many years of pioneering efforts in developing wearable computing and integrates the innovations that IBM offers in design and miniaturization of mobile computers," says Edward G. Newman, Xybernaut's president and CEO.

Xybernaut Corp. is a leading provider of wearable computing hardware, software and services, bringing communications and full-function Pentium computing power in a hands-free design to people when and where they need it. The Mobile Assistant IV (MA IV), Xybernaut's wearable PC, runs all major operating systems on Intel x86 architecture. With the MA IV, customers realize immediate savings in maintenance and repair, diagnosis, inspection, inventory control and data collection procedures. Key industries using Xybernaut's products include manufacturing, distribution, transportation, government, and utilities. Headquartered in Fairfax, Va., Xybernaut has offices and subsidiaries in Europe (Germany) and Asia (Japan).