Atigo® Serves as Flexible Computing Platform for Appraiser Data Collection in the Field; Expanded Joint Capabilities Also Meet Needs of Inspection and Insurance Industries

FAIRFAX, VA and SAN ANTONIO, TX -- September 8, 2004 -- Xybernaut Corporation (NASDAQ: XYBR) and APEX Software today announced the joint integration of Xybernaut mobile/wearable computing with industry-leading software for real estate appraisal, property insurance and building inspection industries.

Under terms of the partner relationship, the Xybernaut Atigo® platform becomes the primary mobile/wearable computer for a variety of APEX Software technologies and solutions including:

• MobileSketch™ -- "drawing" software that automatically sketches a floor-plan and calculates areas using the laser measurements and line directions sent to or from a mobile device -- such as the Xybernaut Atigo.
• APEX IV™ -- comprehensive tool for compiling collected measurements and related data to create professional-quality floor plans with automatic area calculation
• DISTO™ Plus -- a laser measuring device by Leica Geosystems that automatically measures distances and sends data to a mobile device via Bluetooth® wireless communications

APEX, which is a leader in professional sketching and measurement applications, has focused in recent years on mobile data collection software and related hardware technologies. The DISTO Plus, MobileSketch and/or APEX IV combined with the Xybernaut Atigo form a solid foundation of products that utilize wireless communications to allow users to literally draw and calculate areas while they are being measured. This virtually eliminates the need to re-key or re-enter information after the measurements have been taken.

APEX Software currently enjoys an 80-90% market share in the residential and commercial real estate appraisal industry and approximately a 30% market share in the government appraisal offices in the United States and Canada. More recently, APEX has expanded its influence in the property insurance and inspections industries as the need for accurate property descriptions and area calculations are critical for loss control and insurance claim services. Similarly, over more than a decade, Xybernaut has established its presence as a premier provider of anytime, anywhere computing in a wide variety of industries.

"Combining APEX solutions and brand affinity in these industries with proven Xybernaut mobile solutions creates a killer computing platform," stated Steven A. Newman, president and COO of Xybernaut. "Our integrated offering represents one the most flexible yet affordable options for both large enterprises and small businesses in these data-intensive real estate market segments."

Opportunities moving forward include expanding the APEX and Xybernaut solutions to the real estate inspection, valuation, sales and marketing sectors. Many innovative real estate professionals are already incorporating highly detailed floor plans and virtual property tours into sales packets as competitive differentiators.

"The time-sensitive nature of real estate related activities means that profit margins are often improved or lost based on the ability to access and provide information when and wherever it is needed," stated Randall H. Garrett, president and CEO of APEX Software. "The introduction of mobile/wearable computing has already proven its benefits to customers to which we have introduced the technologies and has opened doors to new opportunities."

Building on the initial integration of their technologies, APEX and Xybernaut are already looking at other areas where mobile/wearable computing and detailed sketching and measurement solutions could be utilized for productivity or to enhance overall information and knowledge management.

About APEX Software
Headquartered in San Antonio, TX, Apex Software is a business applications developer for the real estate valuation market. The first APEX desktop application was introduced to the real estate appraiser market in the 1980's. By 1992, the APEX Sketch Library was considered the industry standard by all reasonable accounts. This was due in part to Apex's commitment to establish a standard communication protocol that allowed data to be shared with other appraisal software programs. End users and developers may visit the APEX Web site at www.apexwin.com to learn more about their custom software 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 the Xybernaut Web site at www.xybernaut.com. Product photos are also available directly from Xybernaut.

Xybernaut, the Xybernaut logo 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.

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