XYBERNAUT CORP

Xybernaut Selected By Vneshtorgbank -- Russia's 'Bank for Foreign Trade' -- for Information Technology Solutions and Systems to Enhance Efficiency and Productivity MONDAY, NOVEMBER 08, 2004 9:40 AM - BusinessWire XYBR 1.16 n/a Enter Symbol: Enter Keyword: FAIRFAX, Va. & MOSCOW, Nov 8, 2004 (BUSINESS WIRE) -- Xybernaut(R) Corporation (XYBR) , today announced that the Vneshtorgbank (VTB), Russia's second largest bank and officially designated "Bank for Foreign Trade," has selected Xybernaut as an information technology (IT) provider for a variety of improvements to business operations, customer services and bank efficiency. The agreement, which outlines interest in Xybernaut expertise and know-how calls assigns Xybernaut as a technical services provider and contractor-integrator for hardware, software and solutions services. The agreement outlines a series of phases of IT enhancements for the bank's computing architecture throughout 2005 and beyond. In related news, VTB has already completed similar agreements with IBM, HP, Cisco and Microsoft -- American companies that will also be part of the IT team for this initiative. VTB has also chosen Russian IT companies who will lead the various integration efforts through 2006. These companies include: "Compulink", a partner of Avaya and IBM, "i-Teco", a partner of HP and Microsoft, "Jet Infosystems", a partner of Sun Microsystems, and "Microtest", a partner of Cisco Systems. VTB estimates that the bank currently spends $30-40 million on Information and Telecommunications Infrastructure (ITT) development every year. According to VTB's management, intends to become the most technological bank in Russia in three years. In fact, the VTB formally documented IT strategy indicates that the banks' management plans to spend more than $100 million on ITT enhancements to achieve these objectives. "This ITT enhancement initiative is a critical step for VTB and we anticipate measurable benefits to our operational efficiency and quality of customer service," stated Andrey Korotkov, senior vice president for VTB. "Xybernaut was chosen as a member of this technology team because of their proven success in mobile/wearable computing with large government customers and Fortune 500 enterprises. We are not only interested in Xybernaut hardware and systems but in its know-how, intellectual property and solutions services. This mix of capabilities was an important differentiator in our selection process. We have already identified several IT objective that Xybernaut has been selected to accomplish." Xybernaut and VTB's other ITT development partners, plan to employ a staged approach to bank-wide implementation using pilot-programs, testing/evaluations, reports and refinements related to areas such as integration with existing VTB information technologies, performance measurements, training factors and return on investment (ROI) studies. "VTB is putting together a stellar team of IT providers and we look forward to contributing with expertise, experience and technologies that will truly make a difference for VTB," stated Steven A. Newman, president and COO of Xybernaut. "Successes in the banking and finance sector, such as our Atigo deployments for NYMEX member-company MBF Clearing Corp., are providing valuable perspective and metrics that can be used for strategic planning and evaluation of efforts for VTB." VTB currently has 48 regional representative offices in 11 time zones and over 1000 branches throughout Russia. Recently, VTB has acquired several banks in the Top 30 rating among Russian banks. Integration of these and additional merged banks is one area in which the enhanced ITT strategy is expected to deliver considerable benefit. Among Russian banks VTB has the broadest network of correspondents. The international network of the Bank is represented by five subsidiaries in Zurich (Switzerland), in Limassol (Cyprus), in Vienna (Austria), in Luxembourg and in Erevan (Armenia), associated bank in Frankfurt-on-Main (Germany), representative offices in Milan (Italy), Beijing (China), Kiev (Ukraine) and Minsk (Belarus). In addition to traditional banking services, VTB also actively develops retail markets, small business crediting, commercial and residential mortgages, while managing a full service insurance company and a variety of leasing companies. Additional VTB information can be found at http://eng.vtb.ru. 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 (Japan and China). Visit Xybernaut on the Internet at www.xybernaut.com. Xybernaut, the Xybernaut logo and Mobile Assistant(R) V (MA(R) V) 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. SOURCE: Xybernaut Corporation Xybernaut Corporation, Fairfax Michael Binko, 703-631-6925 mbinko@xybernaut.com Copyright (C) 2004 Business Wire. All rights reserved.

Xybernaut Chairman to Discuss the Integration of Wearable Computers with Tech-Ware Clothing; Technology and Textiles Focal Topics for Taipei International Apparel Show 2004 WEDNESDAY, SEPTEMBER 22, 2004 10:09 AM - BusinessWire XYBR 1.14 -0.03 Enter Symbol: Enter Keyword: WASHINGTON, Sep 22, 2004 (BUSINESS WIRE) -- Mobile/wearable computing is quickly becoming an attractive technology for integration with textiles -- garments, apparel, furniture, housing materials and many other types of textiles. The combination of these two industries is the focal point for many sessions during the Taipei International Apparel Show 2004 held this week in Taiwan. To address the intersection of these technology categories, Edward G. Newman, chairman and CEO of Xybernaut Corporation (XYBR) , has been invited to discuss these topics and Xybernaut experiences in the areas of computing and textile technology integration on September 23. "It's now considered critical to have mobile access to all types of critical data (text, audio, video, images, speech or geo-spatial information) wherever and whenever needed," stated Edward G. Newman. "Making computers more flexible and usable will naturally include efforts to integrate these technologies more closely with textiles -- whether these efforts be at the fabrics level or at the level of garment design and production. From telemedicine, to military/tactical deployments, to consumer applications, the possibilities are boundless," continued Newman. Xybernaut currently holds patents that relate how computers are worn, how they integrate with garments/textiles and specific applications of computer-enhanced textiles. Examples of Xybernaut intellectual property in these areas include computers combined with protective garments such as body armor, HAZMAT response garments, clean-room garments and others. WHAT/WHEN: Taipei International Apparel Show 2004 -- September 21 - 23 For detailed information on the event, visit www.titas.com.tw. WHERE: NOTE: Registered Guests Only Taipei World Trade Center 5 Hsinyi Road, Sec. 5, Taipei 110, Taiwan HOW TO COVER THE NEWS: Media representatives should contact Xybernaut Corporate Communications at 703-631-6925 or publicrelations@xybernaut.com. 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 (Japan and China). Visit the Xybernaut Web site at www.xybernaut.com. Product photos are also available directly from Xybernaut. 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. SOURCE: Xybernaut Corporation Xybernaut Corporation Michael Binko, 703-631-6925 publicrelations@xybernaut.com Customize your Business Wire news & multimedia to match your needs. Get breaking news from companies and organizations worldwide. Logon for FREE today at www.BusinessWire.com.

Xybernaut Reports 21% Revenue Increase for Second Quarter 2004; Year to Date Revenues Increase 70%; Past Three Quarters Strongest in Company's History THURSDAY, AUGUST 05, 2004 7:30 AM - BusinessWire XYBR 1.28 -0.04 Enter Symbol: Enter Keyword: FAIRFAX, Va., Aug 5, 2004 (BUSINESS WIRE) -- Xybernaut(R) Corporation (XYBR) today announced results for its second quarter ended June 30, 2004. Total revenue for the second quarter of 2004 was $3.4 million, a 21% increase from the comparable 2003 period. Total revenue for the six months ended June 30, 2004 was $7.8 million, a 70% increase from the six months ended June 30, 2003. Beginning with the fourth quarter of 2003 and continuing through the second quarter of 2004, the Company has now reported its highest three quarterly revenues ever. The Company also reported a strong balance sheet. As of June 30, 2004, the Company had no long-term debt, cash of $13.3 million and stockholders' equity of $16.5 million. " With revenues up 70%, the value of our intellectual property now being validated and having just come off the Company's strongest three quarters ever, I am confident that we are not only on the right track but also that our growth in many areas will now be sharply accelerating as we move forward," said Edward G. Newman, chairman and CEO of Xybernaut. " Xybernaut solutions and technologies based on our intellectual property are now being deployed into a wide variety of major market sectors from homeland security applications used to examine moving cargo containers; to systems that can detect guns; to in-the-field monitoring solutions to combat West Nile virus; to information delivery systems used by Wall Street traders; to even a solution that will allow a disabled child to learn to communicate," Newman added. Quarterly Highlights As of and for the As of December 31, 2003 and Six Months Ended for the Six Months Ended June 30, 2004 June 30, 2003 ----------------- --------------------------- Total revenue $ 7,775,045 $ 4,575,558 Cash & cash equivalents $13,251,416 $ 9,524,541 Stockholders' equity $16,470,820 $15,909,525

Xybernaut and IBM Complete Business Development Agreement; Agreement Expands Existing Relationship in the Areas of Sales and Marketing and Joint Business Development MONDAY, JULY 19, 2004 9:30 AM - BusinessWire XYBR 1.39 +0.04 Enter Symbol: Enter Keyword: FAIRFAX, Va., Jul 19, 2004 (BUSINESS WIRE) -- Xybernaut(R) Corporation (XYBR) today announced completion of an expanded Technical Services Agreement (TSA) with IBM Corporation (IBM) whereby the two companies will continue to work closely on a variety of sales, marketing and business development opportunities in the mobile/wearable computing sector. The joint business development opportunities expand on a relationship that has existed for more than 6 years. These opportunities include: -- Market development/sales-marketing and go-to-market strategies -- Technical assessments/solution configuration strategies -- Consultation for customer contract proposals "IBM continues to be one of our strongest partners," stated Steven A. Newman, president and COO of Xybernaut. "This comprehensive technical services agreement will enhance this relationship even further as both organizations now have a solid understanding of each others' core offerings and strengths. Xybernaut sales, marketing, business development and product teams look forward to expanding our joint activities with IBM." IBM and Xybernaut began their relationship in 1999 when IBM was selected to jointly develop and manufacture the fifth generation of the Xybernaut Mobile Assistant(R) (MA) product family. Under that initial agreement, the MA V(R) wearable computer was developed based on Xybernaut intellectual property with engineering and technology services provided by the Engineering and Technology Services (E&TS) division of IBM. "Building on our initial involvement in the development and manufacturing of the MA V, the Xybernaut and IBM relationship naturally evolved into one that included joint market and business development efforts to further extend our relationship in the mobile computing marketplace," stated Samuel M. Prabhakar, Director, Systems Solutions, IBM E&TS. About IBM IBM is the world's largest information technology company, with 80 years of leadership in helping businesses innovate. IBM and its Business Partners offer a wide range of services, solutions and technologies that enable customers, large and small, to take full advantage of the new era of on demand engineering and computing services. Information about IBM is available at http://www.ibm.com. 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. Headquartered in Fairfax, Virginia, Xybernaut has offices and subsidiaries in Europe (Germany) and Asia (Japan and China). Visit Xybernaut on the Internet at www.xybernaut.com. Xybernaut, the Xybernaut logo, Mobile Assistant(R) MA V(R) 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. SOURCE: Xybernaut Corporation Xybernaut Corporation, Fairfax Media Contact: Michael Binko, 703-631-6925 publicrelations@xybernaut.com Customize your Business Wire news & multimedia to match your needs. Get breaking news from companies and organizations worldwide. Logon for FREE today at www.BusinessWire.com. Copyright (C) 2004 Business Wire. All rights reserved.