SOURCE: Technest Holdings, Inc.

January 28, 2008 09:07 ET

Technest Holdings Announces Formation of Division to Commercialize Innovative EARCAD System for Hearing Aid Industry

BETHESDA, MD--(Marketwire - January 28, 2008) - Technest Holdings, Inc. (OTCBB: TCNH), an advanced sensor system, surveillance and state-of-the-art 3D imaging company, announced today that it has formed a new division to focus on the commercialization of its innovative 3D ear digitizer system for the hearing aid industry.

The EARCAD™ system automates the process of converting a physical ear impression into a 3D model for streamlined production and quality control. Initial applications are for hearing-aid manufacturers looking to streamline their operations and audiologists seeking to improve turnaround times and quality of product within their practices.

The EARCAD system comprises a range of impression and non-impression scanners and associated software to create highly accurate 3D models of a patient's ear and provide superior hearing improvement and comfort. In particular, the EARCAD non-impression scanner called EARCAD OPEN, the first of its kind, is well suited to the new "behind the ear" open and non-open fit models, which are approaching 50% of all hearing aids sold. The EARCAD OPEN will also be ideal for the iPod, MP3 and Bluetooth ear piece market for superior custom fits.

The Company will debut its new system at the American Academy of Audiology Conference in April this year.

The industry publication, The Hearing Journal, estimates approximately 2.5 million hearing aids were sold in the United States in 2007. Market penetration still has considerable potential growth, as 17.6% of the population, or 56 million people, are over the age of 60 with increasing life expectancy.

Spearheading Technest's effort is Michael Lancia, recently appointed Vice-President of Medical Devices for Technest. As an experienced entrepreneurial Hearing Instrument Specialist who owns and operates Ocean State Hearing Aid Center with three locations in Rhode Island, Mr. Lancia has strong working affiliations with the largest hearing aid manufacturers in the world, including GNresound, Oticon, Widex, Phonak, Sonic Innovations and Siemens Hearing. Mr. Lancia has over 20 years of experience in the hearing aid industry and is a graduate of Bryant University in Computer Science. Since 2004, he has been researching and developing the design and use of 3D scanners for the healthcare industry.

Mr. Lancia stated, "I believe that Technest's practical industry experience combined with its state-of-the-art 3D technology puts the Company in a position to make a significant contribution to the process of designing and manufacturing custom-fit hearing aid shells for tomorrow's world of discriminating and affluent baby boomers."

Mr. Lancia further stated, "I believe over the next decade the hearing aid industry is going to experience a significant growth due to the latest hearing aid technology, which incorporates Bluetooth technology into the hearing aid device allowing patients to connect to their cell phones and MP3 players for superior sound quality and fit. With more Americans looking for that custom fit product, the custom ear piece is top on their list. The number one complaint with the current earpieces is that they just don't fit."

About Technest Holdings, Inc.

Technest Holdings, Inc. is a provider of: advanced remote sensor systems, intelligent surveillance and advanced 3D imaging technology solutions to the defense, homeland security and healthcare marketplaces. Technest is committed to setting next-generation imaging standards through the provision of innovative emerging technologies. Through strategic development, Technest focuses on the creation of dual-use technology and products with applications in the defense, civilian homeland security and law enforcement fields as well as healthcare. For more information, please visit the company's website at http://www.technestinc.com.

Investors are cautioned that certain statements contained in this press release are "forward-looking" statements within the meaning of the Private Securities Litigation Reform Act of 1995 (the "Act"). Forward-looking statements include statements which are predictive in nature, which depend upon or refer to future events or conditions, which include words such as "expects," "anticipates," "intends," "plans," "believes," "estimates," or similar expressions. In addition, any statements concerning ongoing business strategies or prospects, applicability, benefit and use of our product and services, and possible future actions, which may be provided by management, are also forward-looking statements as defined by the Act. Some of the factors that could significantly impact the forward-looking statements in this press release include, but are not limited to: the functionality of our product; our capabilities; a rejection of the Company's products and technologies by the marketplace; and disputes as to the Company's intellectual property rights. Forward-looking statements are based upon current expectations and projections about future events and are subject to risks, uncertainties, and assumptions about Technest Holdings, its products, economic and market factors and the industries in which Technest Holdings does business, among other things. These statements are not guarantees of future performance and Technest Holdings has no specific intention to update these statements. More detailed information about those factors is contained in Technest Holdings' filings with the Securities and Exchange Commission. http://www.sec.gov

Pursuant to a May 15, 2007 agreement, Consulting For Strategic Growth1, Ltd. ("CFSG1") provides Technest Holdings, Inc. with consulting, business advisory, investor relations, public relations and corporate development services. Independent of CFSG1's receipt of cash compensation from Technest Holdings, CFSG1 may choose to purchase the company's common stock and thereafter liquidate those securities at any time it deems appropriate to do so.

Contact Information

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    Daniel Stepanek
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