Xybernaut and Transmeta Announce Commitment to Drive Innovation in Mobile/Wearable Computing Solutions

Xybernaut(R) Corporation (NASDAQ:XYBR) and Transmeta Corporation (NASDAQ:TMTA) today announced a collaboration in which both companies share their respective technology expertise to develop mobile/wearable computing technologies that meet the needs of a wide variety of industry sectors and end-user communities.

Transmeta and Xybernaut continue to work together on research and product development efforts that address specific challenges of mobile/wearable computing at the enterprise level -- including, power management, computing performance, ergonomics, usability and durability. Specifically, over the past 9 months, the companies have strengthened their working relationship to develop next-generation mobile/wearable computers -- particularly related to the Xybernaut Atigo(R) product family.

"Transmeta is dedicated to driving innovation in the x86-processor market, and working with established market leaders such as Xybernaut opens a variety of new ways to implement cost effective products that will boost productivity by enhancing data acquisition and management," said Arthur L. Swift, vice president of marketing for Transmeta. "We feel that our companies will be able to develop intuitive ways to accomplish various technical tasks, complex repairs, detailed quality assurance inspections, point of sale transactions and customer-related activities."

Both companies are leaders in their respective markets -- Xybernaut in mobile/wearable computing and Transmeta in software-based microprocessors and related efficient computing technologies. Initial joint efforts and Xybernaut technology development concentrates on targeted industry sector such as retail, energy/ utilities, transportation, government/military, aerospace/aviation, manufacturing, hospitality and others.

"Although tangible benefits from mobile/wearable computing have already been proven by our customers in the broad categories of field workforce automation and enterprise productivity, our customers continuously demand that we enhance our products for maximum productivity gains and measurable return on investment," stated Steven A. Newman, president of Xybernaut. "A critical differentiator that our customers recognize is our ability to attract, and work efficiently with, partners that 'push the envelope.' Transmeta is a recognized innovator in the microprocessor sector, a technology powerhouse and a key component for the future of strategic Xybernaut products."

About Transmeta Corporation

Transmeta Corporation develops and sells software-based microprocessors and develops additional hardware, software and system technologies that enable manufacturers to build highly efficient computing systems characterized by low power consumption, reduced heat dissipation and the high performance required to run standard x86 compatible programs. We originally developed our family of Crusoe microprocessors for lightweight notebook computers and other mobile computing devices, but we have developed and are continuing to develop microprocessors suitable for a variety of existing and emerging end markets in which x86 program compatibility and energy and thermal efficiency are desirable.

To learn more about Transmeta, visit www.transmeta.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). 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 companies' products, general acceptance of the companies' products and technologies, competitive factors, timing, and other risks described in the companies' 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.

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