Automotive Mobile Audio Video

Mobile Entertainment, Navigation, Telematics and Automotive Maintenance Management Key Applications

Xybernaut(R) Corporation (NASDAQ:XYBR) and Stargate Mobile LLC today announced a partnership relationship under which Xybernaut mobile/wireless computing technologies and Stargate integration and solution expertise will be combined into a single solution for a variety of original equipment manufacturer (OEM) and after-market applications within the automotive industry.

Under the relationship, Stargate has joined Team Xybernaut(TM) as a systems integrator and solution provider working with Xybernaut in the automotive sectors. Both companies have been working together for more than six months to develop and deploy the integrated computing platforms.

The mobile/wireless solutions are initially being offered on the Xybernaut Atigo(R) computers. The complete turnkey systems consist of the Xybernaut Atigo computer running two specific platforms - information and entertainment - that were specifically designed for use in automotive applications utilizing wireless networking capabilities for transferring data and Internet access.

"The mobility and full computing power afforded by the joint Xybernaut-Stargate solutions offer auto enthusiasts a unique option for OEM or after-market upgrades," said Brad Chitty, executive vice president, Business Development, for Xybernaut. "In recent years, automotive upgrades have become one of the largest consumer electronics markets in the U.S. and abroad. Though music and video applications were the initial focus, full computing capabilities are a natural next step. We're confident an automated Internet-based whole-vehicle computing solution serves the broadest array of applications."

Xybernaut and Stargate will be displaying these technologies together this week at the Consumer Electronics Show (CES) in Las Vegas from January 6 - 10 in Booth # 6717 (located in the North Hall of the Las Vegas Convention Center). Several vehicles will be configured with the joint Xybernaut-Stargate technologies to demonstrate the information and entertainment components such as telematics (GPS/GIS), navigation, OBDII, computing capabilities, MP3s/music, DVD/video and other capabilities.

Initial customers using the joint solution include Decoma, General Motors, Hummer, and Daimler/Chrysler.

On display at the CES event will be a GMC Yukon XL 2005, Joe Gibbs Special Edition 2005 Chevrolet Avalanche and a 2005 Hummer H2. In October of 2004, Decoma presented the new Chrysler 300c at the SEMA 2004 Exposition will all the Xybernaut-Stargate components. That vehicle was chosen as the winner of The Best Interior Design and Theme award from Chrysler.

"Stargate is truly pleased to bring such fine products and talent together in order to offer a 'life-moving' experience for consumers in the mobile world with live in today," stated John Cooper, president, Stargate Mobile LLC. "With the flexibility and portability of the Atigo, our customers have full mobile computing both inside the vehicle or away from the vehicle if they chose to 'undock' the Atigo and take it with them."

Both companies are leaders in their respective markets -- Xybernaut in mobile, wireless and wearable computing and Stargate with automotive applications and solutions. For more information related to Stargate,

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 (China, Japan and Korea). .

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