Xybernaut and Humanoid Robotics Institute, Waseda University to Integrate Robotics and Wearable Computing Technologies

Business Wire, August 8, 2002

Business Editors

FAIRFAX, Va. and TOKYO--(BUSINESS WIRE)--Aug. 8, 2002

Industry Leaders to Research, Develop and Deploy Solutions for Key

Governmental, Commercial and Consumer Applications

Xybernaut(R) Corporation (NASDAQ: XYBR) and the Humanoid Robotics Institute (HRI), Waseda University, Japan's leading university in robotics research, today announced completion of an agreement whereby both organizations will further the research, development and integration of wearable computing and robotics technologies.

HRI, Waseda University works closely with the top Japanese corporations and governmental agencies in conducting basic research, development and engineering (RDE) for the critical robotics sector. These activities range from the most fundamental science and engineering related to the mechanical and electronic aspects of robots, to the humanization and man-machine interface aspects of field deployments.

Xybernaut has conducted significant RDE in man-machine interfaces during more than 10 years of developing wearable/mobile computing intellectual property and solutions for businesses and consumers. Both organizations bring innovation, technical expertise and marketing resources and business relationships to the new cooperative research program.

Dr. Shuji Hashimoto, director of HRI, Waseda University stated, "We are very happy that our long relationship with Xybernaut Corporation is being strengthened with this agreement. In addition to assigning technical and professional staff and students to one another's organizations, we have high expectations that Xybernaut will help the world see the benefits of robotics in all aspects of everyday life far sooner than ever before possible. Our combined intellectual property is a very valuable asset in these efforts."

Industry analysis indicates that the potential market for wearable computing and robotics should continue to grow significantly in the near future. Japan and the United States are the global leaders in both sectors.

According to research conducted by the Robotic Industries Association (RIA), more than 107,000 robots were already at work in U.S. factories prior to the end of 2000 with leading applications for robotics including materials handling, spot welding, arc welding, assembly, dispensing & coating, material removal and inspection -- see the Industry Trends and Leading Economic Indicators data located at www.roboticsonline.com.

When combined with wearable computing technologies, robotics is expected to yield even greater productivity, accuracy and cost-saving benefits in these and many other commercial/consumer industries.

Edward G. Newman, chairman, president and CEO of Xybernaut, went on to say, "Waseda University is clearly a leader in the field of robotics in the academic research community, as well as having the most extensive network of cooperative programs within the Japanese industrial community. We see many innovative and exciting opportunities to take the results of our years of effort to the next step - namely, the widespread integration of robotics with wearable computing in a large number industries and applications -- from industrial inspection and clean-up to traditionally dangerous maintenance and inspection tasks, to biologically or chemically hazardous arenas, to providing security and surveillance in both hazardous or benign environments and eventually to the consumer sector."

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

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 web site are not endorsed by or adopted by Xybernaut, nor has Xybernaut verified their accuracy.