Xybernaut Granted Transferable Core Patent in China; Combined With Recent Business Activities, Mobile Technology Patents Pave the Way for Expansion of Xybernaut Operations in China.

Business Editors/High-Tech Writers

FAIRFAX, Va.--(BUSINESS WIRE)--March 10, 2004

Xybernaut(R) Corporation (Nasdaq:XYBR) today announced it has been granted a patent by China related to the Company's Transferable Core intellectual property (IP). This advanced mobile technology allows users to take their computer's "brain" and data anywhere.

The Chinese patent, called "Transferable Core Computer," describes a computer system comprised of two separate structures.

The Transferable Core, which is about a third the size of a cell phone, contains the "brains" of a PC - processor, memory, storage and I/O circuitry, desktop, software applications and information - everything but the power supply and display. When plugged into what the Company calls an "enclosure," which can be anything from a stripped down laptop, to a cell phone, to the dashboard of a car, the core unit becomes a true "personal" computer.

This Transferable Core allows the computer user to keep only the computer components needed while allowing the user to easily remove or transfer components that are not needed or essential. The true benefit of Xybernaut Transferable Core patented technologies is that, regardless of what enclosure is used, the operator always has a familiar computing environment. The operating system, software, applications, data and the look-and-feel of your personal desktop are the same.

"The granting of this and other patents marks a new era of cooperation with the People's Republic of China," said Edward G. Newman, chairman and CEO of Xybernaut. "Combined with our launch of Xybernaut China Ltd. and many other progressive growth initiatives underway in the region, Xybernaut is seeing immediate results of our strategic efforts to extend the Company's position as the leader in mobile/wearable computing to China/Asia and the Pacific Rim."

Through strategic relationships and licensing agreements with a growing base of leading equipment manufacturers, resellers and integrators, Xybernaut intellectual property is readily available to third party organizations. Xybernaut has already entered into licensing and business combination relationships with international companies to develop technologies and solution services directly rooted in Xybernaut IP.

Xybernaut continues to discuss applications of its IP with other corporations, government entities and organizations as part of an enhanced Licensing Plan announced previously.

Examples of these successful Xybernaut IP licensing efforts include the poma(TM) -- a wearable computer jointly developed and marketed under a licensing agreement with Hitachi; an Inspection Toolkit -- the first of several joint projects being conducted under a licensing and market development relationship with Mitsubishi Heavy Industries (MHI); as well as the recent formation of Xybernaut China Ltd -- a joint venture with Softbank that will bring Xybernaut mobile/wearable computers and related IP to various market sectors in China and SE Asia.

This Transferable Core IP has issued as China Patent No. ZL98107391.3. This patent relates to the previously granted U.S. patent no. 6,029,183 -- with similar title and disclosures.

About Xybernaut Corporation

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. Xybernaut maintains hundreds of patents in more than 17 countries. Headquartered in Fairfax, Virginia, Xybernaut has offices and subsidiaries in Europe (Germany) and Asia (Japan). Visit Xybernaut on the Internet at www.xybernaut.com.

Xybernaut and the Xybernaut logo 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.