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                                                                    EXHIBIT 99.1

[KNOWLEDGE MECHANICS LOGO]


FOR IMMEDIATE RELEASE                                        CONTACT: KATE LORD
JULY 16, 2001                                                   +1.616.913.4107
                                                   KLORD@KNOWLEDGEMECHANICS.COM

                      XBOX TECHNOLOGIES ACQUIRES YOUPOWERED

GRAND RAPIDS, MICHIGAN, USA - XBOX Technologies Inc., a technology development
company, today announced it has completed the acquisition of YOUpowered, Inc., a
provider of personalization technology for e-business and consumers.

The acquisition was made by way of merger with an XBOX acquisition subsidiary
with YOUpowered being the surviving company. As part of the agreement, XBOX
acquires YOUpowered's assets, including its software. YOUpowered will become a
wholly owned subsidiary of XBOX.

The purchase price is $3.8 Million, to be satisfied by the issue, to YOUpowered
shareholders, of approximately 10.6 million XBOX Common Shares at $0.1797 per
share and approximately 2.1 million Series B Preferred Shares (convertible into
5 XBOX common) at $0.8985 per share. XBOX may be required to issue additional
shares of its Common Stock and Series B Preferred Stock to the former
stockholders of Youpowered depending on the resolution of certain contingent
liabilities following closing, the revenue of the Company for the twelve month
period ending November 30, 2001 and the trading price of the Company's common
stock during the thirty trading days preceding the eighteen month anniversary of
the Effective Time.

Knowledge Mechanics, a wholly owned subsidiary of XBOX and provider of
enterprise-wide e-Learning software solutions, will leverage YOUpowered's
concepts and technical specifications in order to augment its next generation
software platform.

"Knowledge Mechanics believes in a learner-centric philosophy - providing
learners with instruction personalized to their learning style and needs, and
delivering that information when and how they need it," said Kathy McFadden,
Vice President of Research & Development. "We felt there was a synergy between
the two company's philosophies on personalization and decided to take advantage
of that."

Knowledge Mechanics Learning Content Management System (LCMS) software quickens
and cuts the cost of creating, managing and deploying quality content for online
learning. Its next generation platform, due for release in 2002, will feature a
completely new architecture as well as advanced student tracking, intelligent
delivery of personalized content and competency mapping to enhance the online
learning process.

ABOUT XBOX TECHNOLOGIES

XBOX Technologies (Nasdaq: Xbox.OB) is a technology development company engaged
in bringing innovative technologies to fruition.



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[KNOWLEDGE MECHANICS LOGO]

ABOUT KNOWLEDGE MECHANICS

Knowledge Mechanics, an XBOX Technologies(TM) Company (XBOX.OB), is an
international provider of Learning Content Management System (LCMS) software.
The Knowledge Mechanics LCMS enables clients to create, store, assemble, manage
and deliver personalized e-Learning content. This provides our clients with the
e-Learning infrastructure to execute strategic initiatives across their
enterprise. Learn more about Knowledge Mechanics at: WWW.KNOWLEDGEMECHANICS.COM.
Global Headquarters +1 616 233 1301; European Headquarters +44 (0) 1925 661 786