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Xenos Reports Preliminary First Quarter Results

TORONTO, Ontario, February 2, 2005 - Xenos Group Inc. (TSX: XNS), the data to e-content company(TM), today released preliminary financial results for its first quarter of fiscal 2005 and provided an update on recent corporate developments.

Xenos reported that revenue for the fiscal first quarter ended December 31, 2004 was approximately $3.5 million as compared to $4.5 million for the same period of fiscal 2004. The Company expects to report negative EBITDA of approximately $200 thousand and a net loss of approximately $500 thousand. This compares to EBITDA of $900 thousand and net earnings of $500 thousand in the Company's first quarter of fiscal 2004. The Company's cash position at the end of the quarter was $12.4 million, which compares to $12.6 million at the end of the previous quarter.

"There were numerous projects moving forward during the quarter," said Stuart Butts, Chairman and CEO of Xenos. "However, not enough of them ended up closing by Dec 31st. The first quarter results do not reflect the overall level of business activity that we are currently engaged in. The Company signed several service agreements during the quarter that will be fulfilled through the balance of the year. Consequently our second quarter revenues are expected to be substantially higher than Q1 revenues."

"The Healthcare market is showing significant promise," said Jim Farmer, President and COO of Xenos. "By executing on current plans, and a tight focus on Xenos' market positioning in key verticals, we expect to finish the year strongly."

Detailed financial results for the first quarter will be released before the opening of trading on Thursday, Feb 10th.

Xenos' CEO Stuart Butts is scheduled to speak live on Canada's Report on Business (ROBTv) Power Breakfast news segment on Thursday, February 3rd at 8:45am. Mr. Butts will provide insight into the Company's progress and outlook for the fiscal 2005 year. Report on Business Television is available throughout most of Canada on cable, DTH satellite and wireless systems and can also be viewed on the Web at www.robtv.com.

Technology Demonstration and Annual General Meeting

Xenos also notifies shareholders and members of the investment community that it will be hosting a demonstration of its technology on Monday, February 7 from 9:30am until 11:00am in the Gallery Room of the Toronto Stock Exchange Broadcast and Conference Centre, at The Exchange Tower, 2 First Canadian Place, 130 King Street West in Toronto. The Company encourages interested parties to attend the event to see Xenos software in action. To confirm your attendance please contact Pina Cutone at (905) 763-5119.

Xenos will host its Annual General Meeting immediately following the technology demonstration, at 11:00am. Following the formal business of the meeting management will provide a presentation on the Company's operations and the outlook for Xenos for 2005 and beyond.

About Xenos

Xenos (www.xenos.com) delivers data and document solutions across the customer enterprise without changing existing applications.

d2e is a document enhancement solution that enables the transformation, repurposing, archival, retrieval, printing and Web viewing of documents across the enterprise.

GoXML™ is an integration and transaction processing solution for structured data such as EDI, EDIFACT, AL3, X12, HL7, XML, FIX/SWIFT and many other industry standards. GoXML is a Registered Trademark and patent protected technology of Xenos.

infoWEB™ is a report and document distribution solution that consolidates information from incompatible systems for end user Web viewing.

Xenos partners with industry-leading software companies to provide end-to-end solutions to customers. Xenos products are deployed at organizations worldwide, in industries including banking, brokerage, government, healthcare, hospital, insurance, manufacturing, service bureau and telecommunications. Xenos is headquartered in Toronto, Canada, with offices in Dallas, Texas and the United Kingdom. Xenos trades on The Toronto Stock Exchange under the trading symbol "XNS", with approximately 10 million shares outstanding.

For more information, please contact:

Cory Pala
Investor Relations
Tel: +1 (416) 657-2400
Fax: +1 (416) 657-2300
E-mail: cpala@xenos.com

Robert Kunihiro
Vice President and CFO
Tel: +1 (905) 763-5121
Fax: +1 (905) 709-1023
E-mail: rkunihiro@xenos.com
Web: www.xenos.com

Any forward-looking statements that may be contained in this press release are not promises or guarantees and are subject to risks and uncertainties that could cause our actual results to differ materially from those anticipated. The Company cautions you not to place undue reliance upon any such forward-looking statements, which speak only as of the date made and constitute the Company's current intentions, hopes, beliefs, expectations or predictions of the future, which are therefore inherently subject to risks and uncertainties. Forward-looking statements are based on management's beliefs and opinions at the time the statements are made, and the Company does not undertake any obligations to update forward-looking statements should circumstances or management's beliefs or opinions change.

The Company uses financial measures including, but not limited to, "EBITDA" to supplement its consolidated financial statements, which are presented in accordance with Canadian Generally Accepted Accounting Principles (GAAP). EBITDA is not a recognized measure under GAAP and should not be construed as an alternative to net income (loss). Xenos' method of calculating EBITDA may differ from other companies and accordingly may not be comparable to measures used by other companies.

© 2005 Xenos Group Inc. All rights reserved