e.Digital Corporation (fka EDIG)

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June 3, 1999 Niagara Mohawk Nuclear Power Selects Xybernaut(R) Wearable PC; Wearable PC Saves Time and Money in Inspections.

FAIRFAX, Va., June 3 /PRNewswire/ -- Xybernaut Corporation (Nasdaq: XYBR), the leader in wearable computing, today announced that the Xybernaut Mobile Assistant(R)(MA IV(TM)) wearable PC has been chosen by Niagara Mohawk, a subsidiary of Niagara Mohawk Holdings Inc. (NYSE: NMK), for a pilot program in the Nuclear Power Utility Group to improve the responsiveness and productivity of inspections.

"It is my belief that the time savings expected to result from the MA IV will create considerable productivity gains and cost savings when compared to the manual methods currently performed," said James Poindexter, Unit 2 Operations, Nine Mile Point Nuclear Station, Niagara Mohawk. "This application for the MA IV is just the 'tip of the iceberg.' I project a multitude of additional applications for the MA IV, and my goal is to establish this wearable system as a productivity tool for the other departments at Nine Mile Point."

"The adoption of Xybernaut's wearable computer system by Niagara Mohawk will provide a model for other utility companies, which are monitoring the Niagara Mohawk pilot program," said Edward G. Newman, President and CEO of Xybernaut Corporation. "The MA IV is an ideal platform for inspectors to instantly capture and analyze data, then communicate the findings of this analysis while keeping their hands on test probes, measurement tools and the like. Using the MA IV will allow a critical problem to be identified on the spot and repair crews to be instantly notified. We are thrilled to be a part of this progressive approach to nuclear plant inspection, safety and security."

Xybernaut Corporation is working to have the MA IV certified for use with all nuclear power utilities and to provide the industry with wearable computer systems and engineering support services worldwide. Xybernaut's Professional Services Group is supporting the Mohawk evaluation by providing software for the man/machine evaluation.

The MA IV(TM) is now available and being shipped to end users worldwide. It is a full-function Pentium 233 Mhz belt-worn computer, with up to 128 MB of SDRAM, a 4.3 GB hard drive, two PC card slots, a color VGA head-mounted display suspended in front of either eye with microphone and earphone or an optional wrist-mounted VGA flat panel touch screen color display, a miniature keyboard, a battery pack, and integrated voice-recognition software. With U.S. base pricing below $5,000, wearable PCs are now attractive to those organizations seeking to take advantage of the increased productivity of wearable PCs compared with other computing platforms, and for many applications where computers have never been used before.

About Niagara Mohawk:

Niagara Mohawk, a subsidiary of Niagara Mohawk Holdings Inc. (NYSE: NMK), is a regulated energy delivery company with the largest service territory in New York State. The company serves more than 1.5 million electricity customers and more than 540,000 natural gas customers across 24,000 square miles.


About Xybernaut Corporation:

Xybernaut Corporation is the leader in providing hardware, software and service solutions to the wearable computing industry. The Company's patented wearable computer allows users hands-free access to information in the computer's internal storage, in local area networks and on the Internet on an as-needed, where-needed basis. Xybernaut's software is designed to provide users with the right information needed for the task at hand using consistent navigation techniques and screen presentations. Xybernaut's current customers include leading Fortune 500 companies and government organizations for many mobile knowledge delivery system applications, including installation, maintenance and repair, diagnosis, inspection, inventory control, manufacturing and data collection. Key industries using Xybernaut products include manufacturing, distribution, transportation, government, and insurance. Headquartered in Fairfax, Virginia, Xybernaut has offices and subsidiaries in Europe (Germany) and Asia (Japan).

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," "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 production of the Mobile Assistant, general acceptance of the Company's products and technologies, competitive factors, the ability to successfully complete additional financings and other risks described in the Company's SEC reports and filings.

Visit Xybernaut's Web Site at http://www.xybernaut.com