SOURCE: Technest Holdings, Inc.

August 23, 2007 14:48 ET

Technest Holdings Awarded $38.8 Million in Additional Funding for Existing Projects With the U.S. Army's Night Vision and Electronics Sensors Directorate

Funds Follow Six-Month Extension to NVESD Contract

BETHESDA, MD--(Marketwire - August 23, 2007) - Technest Holdings, Inc. (OTCBB: TCNH), a defense and homeland security company, announced today that its wholly owned subsidiary, EOIR Technologies, has received additional funding totaling approximately $38.8 million for eight existing projects with the U.S. Army's Night Vision and Electronics Sensors Directorate ("NVESD").

This funding follows a six-month ordering-period extension on the NVESD omnibus contract with EOIR Technologies. This extension, which is included in year seven of the base contract, was awarded on July 20, 2007. The Period of Performance for this ordering extension is from July 20, 2007 to January 20, 2008. The contract ceiling for this extension is approximately $39 million. This brings the bid value of the NVESD omnibus contract to approximately $542 million and the funded value to approximately $334 million.

The additional funding of $38.8 million is for labor, materials and the purchase of equipment on eight existing delivery orders under the NVESD omnibus contract. The delivery orders cover a six-month period of performance and have been initially funded in the amount of $8.7 million.

The additional funding awards will be used for supporting the development, integration, and testing of numerous sensor systems, including Soldier Sensors, Vehicle Sensors, and Surveillance and Force Protection Sensors. Additional services will be provided for initiatives in Recognition of Combatants, Counter Terrorism, and Homeland Defense. The Company's continued work will support the U.S. Army's NVESD, the Special Projects Office and the Naval Surface Warfare Center (NSWC).

This increase in funding further establishes EOIR Technologies as a leading solutions provider for the United States Military, including the U.S. Army's NVESD, the Special Projects Office and the NSWC.

About EOIR Technologies, Inc.

EOIR Technologies, Inc. has been providing innovative sensor engineering products and services to customers within the Department of Defense for nearly 25 years. For more information, please visit the company's website at http://www.eoir.com.

About Technest Holdings, Inc.

Technest Holdings, Inc. is a provider of: advanced remote sensor systems, chemical detectors, intelligent surveillance and advanced 3D imaging technology solutions to the defense and homeland security marketplaces. Technest is committed to setting next-generation standards in defense and security through the provision of innovative emerging technologies and expert services. Technest's solutions support military, law enforcement and homeland security personnel. Through strategic development, Technest focuses on the creation of dual-use technology and products with applications in both the defense market and civilian homeland security and law enforcement fields. For more information, please visit the company's website at http://www.technestholdings.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 future financial performance (including future revenues, earnings or growth rates), 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

  • Contact:
    Stanley Wunderlich
    Consulting for Strategic Growth 1
    T: 1-800-625-2236
    F: 1-212-337-8089
    Email: Email Contact
    Web site: www.cfsg1.com