Xybernaut Corporation Forms Homeland Security Division.

FAIRFAX, Va. -- Newly Created Unit Developed to Respond to Growing Demand from Government and Private Sector for Xybernaut Security Solutions

Xybernaut Corporation (NASDAQ:XYBR) today announced the formation of a Homeland Security division. The unit was created as a result of strong demand from both government and private sector customers for the company's homeland security and emergency preparedness solutions - including both systems and services.

Xybernaut systems and services are currently being used by all branches of the U.S. Armed Forces and have been deployed into several homeland security applications in the primary areas of emergency preparedness, critical incident response and site security.

Recently, the United States Department of Homeland Security recognized Xybernaut with an award for Outstanding Leadership in Emergency Data Interoperability.

The new business unit is expected to accelerate the company's marketing and sales efforts in both the public and private sector. In conjunction with the development of this new unit, the Company has directed internal and channel sales forces to focus on security opportunities in each of its target markets - both domestic and on an international basis.

The company has also formed a Homeland Security Advisory Board that will include William G.T. Tuttle, General (ret.) United States Army and Harry E. Soyster, General (ret.) United States Army. Both Tuttle and Soyster currently serve as independent members of the Xybernaut corporate Board of Directors. When active, Tuttle served as ranking Commander of the U.S. Army Materiel Command (AMC) - the primary logistics and operational readiness arm of the Army. Soyster served as Commander of the Army Intelligence and Security Command, as well as Deputy Assistant Chief of Staff for Army Intelligence.

"While providing innovative security solutions is not new for Xybernaut, recent wins and increases in high-profile opportunities in this area reaffirm that now is the right time to formalize and focus our efforts in this area," stated Steven A. Newman, president and COO of Xybernaut. "Xybernaut has made substantial investments in developing and acquiring cutting-edge security-related systems, solutions, intellectual property and know-how. This development will allow us to build on many of our successes and focus more directly on market opportunities."

Several recent security sector efforts in which Xybernaut has participated include:

--Xybernaut spear-headed an effort to create a Critical Incident Response Tool Kit for emergency technicians and other "first responder" teams in the Charleston, SC metropolitan area. This initiative was funded by and coordinated with the US Department of Justice's National Institute of Justice (NIJ), to develop best practices and technologies focusing on facility security, emergency preparedness, and disaster response.

--Xybernaut is an integral part of a national program for school emergency preparedness. Under the Standard of School Safety: Littleton Initiative -- a program developed to identify and evaluate best practices and new technologies for school emergencies -- Xybernaut technologies were utilized by Littleton, CO law enforcement, SWAT and fire/rescue teams for full-scale school emergency readiness programs. The largest percentage of first responder participants was from Jefferson and Arapahoe Counties, the Littleton Police Department and the Littleton Public Schools security team - the community in which Columbine High School is located.

--Xybernaut and partner VisualLink are active in the CommCare Alliance - a DC/MD/VA consortium addressing regional homeland security issues. The Alliance has developed systems and procedures for all types of emergencies/hazards such as bio-terrorism, traffic accidents, HAZMAT situations, medical emergencies, law enforcement/fire/rescue and many others.

--The sale and deployment of the Atigo(R) T/HB "high bright" mobile/wearable computers to the U.S. Army for the deployment of wireless computer solutions for Apache attack helicopter maintenance at Ft. Campbell, KY.

--The sale and deployment of Atigo T/HB computers to the 116th Air Control Wing. The deployment of the Atigo computers were studied in conjunction with existing maintenance software during an 8 month period of formal Department of Defense testing to find technologies and methodologies that reduce aircraft maintenance costs that could easily be deployed on a broader basis across many military units.

--The sale and deployment of Xybernaut Mobile Assistant(R) V (MA(R) V) computers in Europe as the basis for a wireless/mobile computing system for airport management, security and mobile employee productivity.

--Joint strategic relationship with FiRST Responder Systems & Technology (FiRST) to deliver mobile/wearable computers with embedded mobile GIS, data and resource management solutions to the nation's first responders. The unique solution provides one of the first truly comprehensive offerings of mobile computing for the public safety industry. The solution utilizes Xybernaut lightweight and powerful Atigo computers to deliver powerful and at-hand information for use by emergency personnel while in-the-line-of-duty.

--Xybernaut and ShotSpotter, Inc. have jointly developed a wearable computer system that allows military and law enforcement personnel to detect gunshots and their location in the field within seconds of the weapon discharging. This collaboration allows the system to go into the field as a mobile/wearable computing devices.

--Xybernaut has been working with AOS to develop Location View Systems (LVS) for all levels of U.S. government agencies and organizations -- local, state and federal - and for both civilian and military use. For homeland security, the LVS offers a fully automated 360-degree panoramic image capture and mapping system that rapidly produces geo-coded location imagery as it moves or is moved throughout a city, military or industrial complex, recreational area, building or campus environment of any type.

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 (China, Japan and Korea). Visit the Xybernaut Web site at www.xybernaut.com.

Xybernaut, the Xybernaut logo and Mobile Assistant(R) V (MA(R) V) and Atigo(R) 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.