Tree-Of-Life Selects XATA

Prominent grocery distributor purchases XATA’s OpCenter™ solution to support 350 truck fleet

MINNEAPOLIS, October 10, 2002 – XATA Corporation, the leading provider of mobile solutions to the transportation industry, today announced the addition of Tree of Life, Inc. to its growing list of private fleet customers. Tree of Life, headquartered in St. Augustine, Fla., purchased XATA’s complete OpCenter solution - including fleet management applications, integrated global positioning (GPS) and touch-screen driver displays - to manage its entire fleet.

“XATA presented us with the most complete fleet management system compared to all the suppliers we looked at,” said Mark Sineath, Corporate Vice President of Transportation at Tree Of Life. “GPS and easy-to-use driver displays were important to promote accurate logs and increased productivity, but XATA’s industry experience coupled with a solid vision for the future really helped to solidify our decision.”

Tree of Life purchased XATA’s mobile solutions in a decision to replace older, obsolete equipment purchased from a different fleet management provider. “Operating as a large specialty and natural foods distributor, it was important to maintain high standards in fleet efficiency and productivity,” added Sineath. “In order to reach our objectives for fuel economy, log accuracy and further minimize clerical time, we had to start leveraging newer technologies.” Tree of Life plans to use XATA throughout its entire 350-truck fleet and at all 13 regional locations. Implementation is already underway and the company hopes to complete its rollout by

first quarter 2003.

About XATA

Founded in 1985, XATA Corporation is the leading provider of mobile asset management solutions to the transportation industry. XATA’s innovative technologies and value-added services enable customers to optimize the utilization of their assets, resulting in decreased cost, increased productivity and improved customer service.

XATA was the first to provide completely paperless electronic logs, exception-based management and learned standards for accurate fleet intelligence. XATA’s products seamlessly combine enterprise software, onboard computing, real-time communications and global positioning to provide an enterprise-wide logistics management solution for North America’s largest fleets. XATA’s products are in use in approximately 30,000 vehicles at over 700 customer locations. For more information, visit www.xata.com or call 1-800-745-9282.

This announcement includes forward-looking statements based on current expectations. Actual results may differ materially. These forward-looking statements involve a number of risks and uncertainties including the possibility of continuing operating losses, the ability to adapt to rapid technological change, dependence on positioning systems and communication networks owned and controlled by others, receipt of new orders for current products, the timely introduction of new products, the ability to fund future product development, and the success of strategic partner relationships.

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