Exhibit 3
                               
CUSIP No: 983905100      Schedule 13D/A           Page 15 of 15
                               
                           Exhibit 4
                               
   XIOX ANNOUNCES CLOSING OF $9.5 MILLION PRIVATE PLACEMENT
                               
BURLINGAME, Calif., October 5, 1998, 3:46 P.M. PDT -- XIOX
Corporation (NASDAQ: XIOX) announced today that it held the
second of two closings under an agreement announced September
21, 1998 to raise approximately $9.5 million from the private
placement of Series A Preferred Stock to Intel Corporation,
Flanders Language Valley and Zero Stage Capital and other
private investors.
                               
In the second closing, approximately $6.5 million of Series A
Preferred Stock was sold to the investors on substantially the
same terms as the first closing, which raised approximately
$3.1 million on September 21, 1998. All together, 1,907,989
shares of Series A Preferred were sold under the agreement at
a purchase price of $5.00 per share. The Series A Preferred
Stock will be convertible into Common Stock on a 1:1 basis
subject to certain anti-dilution provisions.
                               
XIOX Corporation, headquartered in Burlingame, California,
manufactures and distributes a complete line of telephone
management support and control systems and service bureau
solutions for the commercial and hospitality markets. For more
information about XIOX, visit the Company's web site at
http://www.xiox.com.
                               
Except for the historical information contained herein, the
matters discussed in this news release are forward looking
statements. Such forward looking statements involve known and
unknown risks, uncertainties and other factors such as the
availability and market acceptance of new products and product
reliability, which may cause the actual results, performance
or achievements Xiox to be materially different from any
future results, performance or achievements expressed or
implied by such forward looking statements. For further
information, refer to the risk factors detailed from time to
time in the Company's filings with the Securities and Exchange
Commission.
                               
Contact: XIOX Corporation
Melanie Reid, VP Finance/CFO
650/375-8188
mreid@xiox.com