Xybernaut Delivers First Implementation of Transferable Core --TC-- Technology; Initial Sales to European Customers in Response to Strong Demand.

Business Editors/Hi-Tech Writers

FAIRFAX, Va.--(BUSINESS WIRE)--Aug. 23, 2001

Xybernaut(R) Corporation (Nasdaq:XYBR) today announced that in response to customer demand the company has successfully integrated its patented transferable core (TC) technologies into its existing Mobile Assistant(R) (MA(R)) wearable computing platforms.

Transferable core technology refers to a collection of patented and patent-pending intellectual property developed by Xybernaut to eliminate the need for a wide variety of separate computing and communication devices.

Xybernaut also announced that approximately 100 units have already been sold to European customers in a variety of strategic industry sectors including automotive, education/training, manufacturing, telecommunication, utilities, asset management, supply chain/distribution, and advanced multimedia (graphics and animation).

"Working with Xybernaut's MA IV platform has been very exciting for us, and we are looking forward to the opportunity to work with the new TC technologies," said Niklas Elmqvist, project coordinator of the 3Dwm project (http://www.3dwm.org) being developed at Chalmers Medialab in Goteborg, Sweden. "The MA IV is a very flexible and powerful machine, and the fact that it can run Linux out-of-the-box is one of its strongest points, and the reason why 3Dwm chose Xybernaut hardware," Elmqvist continued.

"Xybernaut's Mobile Assistant is truly an excellent platform for software development, especially Open Source Linux-based software such as 3Dwm," added Robert Karlsson, 2D/3D designer for the Medialab project and one of its core developers. "We anticipate valuable results from working with Xybernaut's TC technologies in the future."

Though TC technologies are currently serving as extensions to Xybernaut's MA platforms, they will evolve into stand-alone and fully functional computing systems -- about one-third the size of a typical cell phone -- serving as the computing/communication engine for various mobile interface devices (MIDs).

MIDs already exist in many forms such as a laptop, a cellular phone, an ATM machine, the dashboard of a car, or an airplane seatback. In the future, MIDs could be any number of existing or yet-to-be-developed devices designed to retrieve, utilize, and communicate data.

"Shipping the TC technologies in Europe confirms Xybernaut's worldwide leadership in mobile, wearable, and transportable computing," said Edward G. Newman, chairman, president and CEO of Xybernaut Corporation. "Our TC technologies leverage more than four years of transferable core development and represent a tremendous leap forward in creating a comprehensive yet customizable mobile computing platform. Xybernaut's transferable core truly extends the landscape for more personalized and ubiquitous computing," said Newman.

TC technologies are being sold in Europe through channel partners and, as each implementation involves customization, pricing is unique to each customer configuration. Initial TC technologies include a distinctive interface adapter that supports dual USB, COM2, dual PCMCIA, SVHS, audio and video ports, which can power either flat panel or head mounted displays.

Utilizing open computing standards, Xybernaut TC technologies ensure that MIDs and other devices benefit from a completely transferable, yet fully functional, computing core.

TC platforms are powered by an Intel(R) Pentium III 400 MHz processor and can be configured with up to 320Mb of RAM, 40Gb of hard disk space, and a new lithium ion internal battery that supports uninterrupted hot swapping for extended operation in the field.

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 V(R)), 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.

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This press release contains forward-looking statements within the meaning of The Private Securities Litigation Reform Act of 1995 (the "Act").

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