Exhibit 99.1

FOR IMMEDIATE RELEASE

CONTACT:

Scott Christian

CFO Xata Corporation

952-707-5600

Xata Reports Fiscal 2011 Yearend and Fourth Quarter Results

Software revenue growth of 7 percent contributes to non-GAAP earnings of $4.2 million, $0.15 per diluted share, for fiscal 2011

MINNEAPOLIS, Nov. 3, 2011—Xata Corporation (NASDAQ:XATA) reported results for its fourth quarter and fiscal year ended September 30, 2011.

Total revenue was $15.3 million for the quarter ended September 30, 2011, compared to $17.1 million for the same period of fiscal 2010. Net loss to common shareholders for the fourth quarter of fiscal 2011 was $1.6 million, compared to net income to common shareholders of $0.1 million for the same period of fiscal 2010. Other comments include:

“Our strategy of continuing to invest in fleet optimization solutions has resulted in increased software revenue,” said Jay Coughlan, chairman and president of Xata. “Given the rapidly changing business and compliance environment, it is essential that we continue to invest in developing solutions that will fulfill our customers’ needs.”

“Our non-GAAP earnings performance is reflective of the Company’s focus on investing in the development of future compliant applications and functionality, with the goal of providing increased return on investment for our customers,” said Scott Christian, chief financial officer of Xata.

Fiscal 2011 fourth quarter overall gross margins were 52 percent, which was consistent with margins for the same period of fiscal 2010. The consistency in the margins was attributable to a positive shift in mix

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to higher margin software revenue. The improvement driven by the shift in mix was offset, in part, by declining hardware systems and services margins.

Selling, general and administrative costs decreased $0.8 million to $6.1 million compared to $6.9 million for the three months ended September 30, 2011 and 2010, respectively.

Research and development costs were $4.0 million and $1.8 million for the fourth quarter of fiscal 2011 and 2010, respectively. The continued evolution of compliance requirements facing the trucking industry warrant additional investment in research and development to meet customers’ future needs.

Net loss to common shareholders for the fourth quarter of fiscal 2011 was $1.6 million, compared to a net income to common shareholders of $0.1 million for the same period of fiscal 2010. As a result, the Company reported a loss of $0.15 per diluted share for the three months ended September 30, 2011, compared to breakeven per share for the same period of the prior year on a fully diluted basis.

For the fourth quarter of fiscal 2011, the Company reported non-GAAP earnings (earnings before interest, non-recurring acquisition and financing related costs, taxes, depreciation, amortization, stock based compensation and preferred stock dividends and deemed dividends) of $0.2 million compared to $1.8 million for the same period of fiscal 2010.

As of September 30, 2011, the Company held $12.4 million in cash and cash equivalents and had working capital of $15.8 million, excluding the current portion of long-term obligations and deferred revenue and applicable deferred costs.

For the fiscal year ended September 30, 2011, software revenue increased by 7 percent. Other comments include:

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Summary of revenue and gross margins for the twelve months ended September 30, 2011 and 2010 (amounts in thousands):

Non-GAAP vs. GAAP Financial Measures

To supplement the Company’s consolidated financial statements presented in accordance with GAAP, the Company provides certain non-GAAP financial measures. These non-GAAP financial measures include non-GAAP earnings, which is earnings before interest (net), acquisition and financing related costs, taxes, depreciation, amortization, stock based compensation and preferred stock dividends and deemed dividends, and non-GAAP earnings per diluted share. The Company’s reference to these non-GAAP financial measures should be considered in addition to results prepared under current accounting standards, but are not a substitute for, or superior to, GAAP results.

These non-GAAP financial measures are provided to enhance investors’ overall understanding of the Company’s current financial performance and ability to generate cash flow. In many cases non-GAAP financial measures are used by analysts and investors to evaluate the Company’s performance. Reconciliation to the most directly comparable GAAP financial measure of all non-GAAP financial measures included in this press release can be found in a table included below.

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About Xata

Xata Corporation (NASDAQ: XATA) provides intuitive, automated fleet management software solutions to the trucking industry. By delivering real-time critical information on vehicle and driver performance, Xata makes it easy for fleet managers, dispatchers and drivers to collect, sort, view and analyze data to help reduce costs, increase safety and compliance, and improve customer satisfaction.

Our award-winning solutions include 1) XataNet, a full featured, enterprise-wide solution that helps private and for-hire fleets drive continuous improvement, and 2) Xata Turnpike, a technologically advanced, low-cost, easy-to-install solution that runs on drivers’ existing cell phones, smartphones and tablet computers. Both solutions help fleet managers and drivers meet established electronic onboard recorder (EOBR) regulations. We also offer a portfolio of professional services, including implementation, training and consulting to help our customer deliver bottom-line results. Today Xata solutions increase the productivity of approximately 117,000 trucks across North America. For more information, visit www.xata.com or call 1-800-745-9282.

Cautionary note regarding forward-looking statements.

This announcement includes forward-looking statements. Statements that are not historical or current facts, including statements about beliefs and expectations, are forward-looking statements. Such statements are based on current expectations, and actual results may differ materially. The forward-looking statements in this announcement are subject to a number of risks and uncertainties including, but not limited to, the possibility of continuing operating losses, the ability to adapt to rapid technological change, the ability of our solutions to be compliant with future regulations, dependence on positioning systems and communication networks owned and controlled by others, the receipt and fulfillment of new orders for current products, the timely introduction and market acceptance of new products, the ability to fund future research and development activities, the ability to establish and maintain strategic partner relationships, and the other factors discussed under “Risk Factors” in Part IA, Item 1 of our Annual Report on Form 10-K for the fiscal year ended September 30, 2010 (as updated in our subsequent reports filed with the SEC). These reports are available under the “Investors” section of our Web site at www.xata.com and through the SEC Web site at www.sec.gov. Forward-looking statements speak only as of the date they are made, and we undertake no obligation to update them in light of new information or future events.

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Xata Corporation

Consolidated Statements of Operations

(Amounts in thousands, except per share amounts)

(Unaudited)

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Xata Corporation

Consolidated Balance Sheets

(Amounts in thousands)

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Xata Corporation

Reconciliation of GAAP to Non-GAAP Financial Measures

(Amounts in thousands, except per share amounts)

(Unaudited)