Xybernaut Announces over $5 Million in New Services Contract Awards in 2003; Approximate 50%...

Business Editors/High-Tech Writers

FAIRFAX, Va.--(BUSINESS WIRE)--Dec. 31, 2003

Xybernaut(R) Corporation (NASDAQ: XYBR) and their wholly owned subsidiary, Xybernaut Solutions, Inc. (XSI), today announced that new services contracts awarded during 2003 exceeded $5 million in value,

The new contracts grew significantly and continued to show consistent levels of growth through both third and fourth quarters. The Company has realized a portion of these contracts as revenue during 2003 and expects to record the remaining amounts as revenue during 2004 as the services are performed.

Specifically, the award of multiple contracts, including the DoD contracts, several state Department of Transportation (DOT) add-on contracts for XSI Program and Project Management Solutions (PPMS) and additional contracts from international partners, are examples of recent momentum.

XSI provides software and solution services to help Xybernaut clients improve business processes by providing the tools and technology necessary to turn the wearable computer into a total solution allowing our clients to achieve ROI and gain competitive advantage. The types of services typically provided to XSI clients include:

--  Needs Analysis                          --  Voice Recognition
--  Wireless Connectivity                   --  Biometrics
--  Training                                --  Security Solutions
--  Video Telecollaboration/ Voice over IP  --  Inspection/Maintenance
                                                Solutions
--  Custom Software Development             --  Retail/Hospitality
                                                Solutions

In addition to supporting Xybernaut clients in providing world-class mobile software and service-based solutions, XSI also continues to grow its traditional business areas including Project Management, Asset Management and Software Development. Approximately half of the new contracts are directly related to these traditional business areas with a major portion focused on clients utilizing Xybernaut PPMS solutions to manage capital projects.

"Xybernaut Solutions continues to be a valuable contributor to Xybernaut overall revenue," said Steven A. Newman, president of Xybernaut. "Our mobile solutions team continues to develop and partner with industry leading technology providers to deliver world-class solutions to a variety of industries and markets. We see our software and services as the way for our clients to insure success in their implementation of mobile or wearable solutions."

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). Visit Xybernaut's Web site at www.xybernaut.com.

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

Third party statements contained herein and information contained on any third party website are not endorsed by or adopted by Xybernaut, nor has their accuracy been verified by Xybernaut.