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Technology Stocks : XYBR - Xybernaut -- Ignore unavailable to you. Want to Upgrade?

To: Paul Viapiano who wrote (3378)	3/17/2000 8:26:00 PM
From: Paul Viapiano	Read Replies (1) \| Respond to of 6847

This just in from XYBR: An open message from Xybernaut Corporation to its shareholders and interested parties: The Company feels that the drop in stock price this afternoon is not based on any fundamental change in our operations or financial position, but rather is a reaction to a Friday afternoon article (just before market close) which highlighted only one caption of our recently released annual report that we do not believe is representative of our current, financial and market, position or our future. We are in a great position coming off of our record fourth quarter and fiscal 1999 operating performance. To clarify the situation and provide an appropriate perspective let me share the following information with you: * The company has never been in a stronger position from a product, sales or cash position. * We, like most companies with new technologies and new markets, routinely issue disclaimers in financial documents; it's the norm for our business and is required as part of sound financial reporting. The going concern disclaimer, which has been in our reports since our inception, has never in the past been considered "newsworthy" until today, Friday, one hour before the market closed. * Xybernaut has always been honest with its auditors and told them what it intended to spend to achieve its annual plan. Xybernaut, and its partners, believe that the marketplace is huge. If we want to accomplish our very aggressive marketing and sales campaigns and targets to rapidly take that market, we might have to spend more cash than we have on hand, and we have more cash on hand than at any time in our recent history. We have always demonstrated management's capability to adequately capitalize the company and have always tried to do so in a manner that maximizes the long-term benefit of Xybernaut and its shareholders. * In fact, the $13 million we've raised in the first couple of months of 2000 would be enough to cover our base burn for the entire year if we didn't want to expand our marketing efforts; so in management's eyes, we are not a company at risk. * We are of the belief that the marketplace has been established (by us), our products are world class and that the likelihood of success for this company has never been greater. Last year's meaningful quarter to quarter revenue growth is part of the basis for this belief, as is the increasing number of inquiries by customers interested in the benefits they believe Xybernaut's wearable computing solutions can provide. * We have continued to strengthen our patent position, as demonstrated by the recent announcement of the granting of the "transferable core" patents. * We continue to be in serious discussion with numerous major vendors in both the computer and communication markets. * The obvious should not be overlooked. The company is enjoying success, and management is committed to dominating the huge worldwide marketplace it has created and maximizing the long-term return for our shareholders. Thank you for your continued belief and support.