Xybernaut Awarded Software Development Contract From Fairfax County, Virginia; Web-Based Scheduling Solution to be Used for Over 1,000 Athletic Facilities.

Business Editors/Hi-Tech Writers

FAIRFAX, Va.--(BUSINESS WIRE)--June 28, 2001

Xybernaut(R) Corporation (NASDAQ:XYBR), the leader in wearable computing and communications solutions, announced today that its subsidiary, Xybernaut Solutions, Inc., has been awarded a contract for the design and implementation of an Athletic Facilities Scheduling Software system (AFSS) for the Fairfax County Department of Community and Recreation Services.

The contract is initially valued at approximately $400,000 and will run from June 2001 through June 2002.

The new software solution, which will replace an outdated system installed in 1988, will be web-based using state of the art Geographic Information System (GIS) components to help in the scheduling of more than 1,000 athletic facilities in Fairfax County. The software will allow users to query the system through a web portal for gym or field availability and schedule the facilities.

The completed solution will also allow scheduling staff to prepare schedules for the county's gyms and fields.

"Xybernaut understood what our business was all about and the value of this project," said Deborah Deutsch, Business Project Leader with Fairfax County Department of Community and Recreation Services. "We need a software solution that allows us to effectively and efficiently handle a high volume of gym and field requests, which the Xybernaut solution is able to do. Xybernaut came out ahead of the other vendors and simply gave us the best proposal and price."

"This scheduling system is another example of our ability to use the power of the Internet to provide our customers with a solution that meets their needs and provides increased functionality," stated Jacques Rebibo, Executive Vice President of North American Operations for Xybernaut. "We expect to continue to develop web-based solutions for our customers and to expand our customer base in doing so."

About Xybernaut Solutions, Inc.

Xybernaut Solutions, Inc. (XSI) is a wholly owned subsidiary of Xybernaut Corporation. XSI was founded in 1983 and has over 30 full-time employees with headquarters in Vienna, Virginia and an office in Houston, Texas. Xybernaut Solutions is an Information Technology company specializing in project management, asset management and mobile solutions.

XSI also provides application development and integration services in a wide variety of programming languages and databases, including voice enabling of applications supporting hands free computing technology from Xybernaut.

Additionally, XSI has business units focused on selling world-class commercial applications in the project management and asset management arenas addressing business critical needs across a spectrum of industry segments.

About Xybernaut Corporation

Xybernaut Corporation is the leading provider of mobile convergence solutions, and wearable computing hardware, software and services. The company's patented wearable computer, called the Mobile Assistant(R) V (MA(R) V), is a full-function Pentium PC that runs Microsoft MS-DOS, Windows, and Windows NT, along with UNIX, Linux and other operating systems that run on the Intel x86 architecture.

The MA V allows users hands-free access to information in the computer's internal storage, in local area networks and on the Internet on an as-needed, where-needed basis. Xybernaut's software is designed to provide users with the right information when and where it's needed, using consistent navigation techniques and screen presentations.

With the MA V, 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, 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.