Exhibit 99.1
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Agency Contact: Investor Contact: Company Contact:
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Chad Hill Ron Stabiner John Moynahan
Hill Communications The Wall Street Group SVP & CFO
(510) 538-8916 (212) 888-4848 (703) 631-6925
[email protected] [email protected] [email protected]
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XYBERNAUT(R)COMPLETES $18 MILLION
INSTITUTIONAL PLACEMENT OF COMMON STOCK
Institutional Ownership Doubles to More than 15%
FOR IMMEDIATE RELEASE:
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NOVEMBER 15, 2000, FAIRFAX, VA - XYBERNAUT CORPORATION (NASDAQ: XYBR), the
leader in mobile wearable computing and wireless communications, today announced
that it had recently placed $18 million of common stock with institutions, with
$15 million of this amount completed this week. The placements were structured
as a sale of common stock valued at a discount to past market prices without
reset or repricing provisions. The institutions also received warrants to
purchase stock that would raise an additional $9 million for the Company if
fully exercised.
"We are pleased that we were able to complete the largest single financing in
Company history despite some very difficult market conditions," stated Edward G.
Newman, Chairman and CEO of Xybernaut. "More significant is the addition to our
base of institutional shareholders who understand the potential for the wearable
computing and communications markets and Xybernaut's leadership role in these
markets. Based on available 13F reports and this financing, our institutional
ownership has increased to the 15% to 20% range from less than 1% at the end of
March 2000. This financing allows us to move forward with confidence to execute
our business plan and aggressively strengthen our extensive intellectual
property."
ABOUT XYBERNAUT CORPORATION:
Since its founding in 1990, Xybernaut has been the leading provider of mobile,
wearable computing hardware, software and services, bringing wireless
communications and full-function Pentium computing power in a hands-free design
to people when and where required. With over 500 patent applications granted or
pending worldwide, Xybernaut is well positioned to continue its leadership role
in this market. The Mobile Assistant IV (MA IV(R)), Xybernaut's current mobile,
wearable PC, runs all major operating systems on Intel x86 architecture, such as
Windows or Linux. With the MA IV, customers can realize immediate productivity
increases and savings in maintenance and repair, diagnosis, inspection,
inventory control and data collection procedures. Xybernaut provides management
and information technology consulting services, along with asset management
software, for telecommunications systems, roads, waterways, railways, utility,
pipelines, and other. Solutions have been developed for all major operating
systems and architectures. Xybernaut's target markets include manufacturing,
distribution, transportation, government, and utilities. Headquartered in
Fairfax, Virginia, Xybernaut has offices and subsidiaries in Europe and Asia.
Visit Xybernaut's web site at www.xybernaut.com.
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XYBERNAUT COMPLETES $18 MILLION PLACEMENT/PAGE 2 OF 2
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.
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